TORONTO, Nov. 21, 2024 /CNW/ - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company") today announced that pursuant to an order made on November 14, 2024, certain of the Company's Colorado subsidiaries were placed into receivership by Order of Justice Goldberg of the District Court in Denver County, Colorado (the "Receivership Order"). The Receivership Order appointed Highline Financial Group, LLC as receiver of the assets, undertakings and property of certain of the Company's Colorado subsidiaries.
SLANG also announced that it has received a conditional extension of the Company's waiver and support agreement (the "Support Agreement") with, among others, the secured lenders (the "Lenders") under the Company's credit and guaranty agreement dated November 15, 2021, as amended (the "Credit Agreement"). Since the Company has not been able to repay amounts owing under the Credit Agreement, the Lenders and Company have agreed to extend the Support Agreement and continue to standstill and not take any steps under the Credit Agreement and related documents until the earlier of: (a) the date that is three (3) days following the date Lenders provide SLANG with written notice of the termination of the standstill period; (b) the occurrence of an Accommodation Termination Event (as defined in the Support Agreement); and (c) January 31, 2025. SLANG has agreed not to seek to impose a stay, or enjoin in any way the Lenders' (and the administrative agent's and credit agent's) enforcement rights pursuant to the Credit Agreement or as otherwise provided by law.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is an industry leader in branded cannabis consumer packaged goods, with a diversified portfolio of five distinct brands and products distributed across the U.S. Operating in 13 legal cannabis markets nationwide. Learn more at slangww.com.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements in respect of the inability of the Company to repay amounts owing under the Credit Agreement and the extension of the Support Agreement and the terms on which such agreement will continue.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant regulatory, business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to risks related to the Company's inability to pay amounts owing under the Credit Agreement, the extension of the Support Agreement, the Company being unable to complete some or all aspects of its previously announced wind-down plan in a manner acceptable to the Lenders, the future actions and cooperation of the Lenders, the ability of the Company to maintain relationships with suppliers, customers, employees, shareholders and other third parties, regulatory risks, changes in laws, regulations and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's management's discussion and analysis for the year ended December 31, 2023 and other disclosure documents available on SEDAR+ at www.sedarplus.ca. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Reader Advisory
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SOURCE SLANG Worldwide Inc.
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