GOOD NATURED PRODS INC - GDNPF STOCK NEWS

Good Natured Products Inc. (GDNPF) has entered into a binding subscription agreement with HUK 149 , an affiliate of Hilco Capital, as part of its restructuring under CCAA proceedings. The transaction involves a $315,000 cash consideration and includes the incorporation of a Residual Company to hold certain excluded assets and liabilities. The Purchaser will acquire 100% of new common shares while existing shares will be cancelled without consideration. Current shareholders will not receive any payments or distributions, and the company will be delisted from TSX Venture Exchange. The transaction is expected to close around October 31, 2024, subject to court approvals.

good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) announced its Q2 2024 financial results. Revenue was $16.0 million, down from $18.3 million in Q2 2023 but up 14% from Q1 2024. Adjusted EBITDA improved to $0.5 million from $0.1 million in Q2 2023. The company entered CCAA proceedings to restructure its financial affairs, with a stay of proceedings extended to October 25, 2024. A sale and investment solicitation process (SISP) is underway. The company's Packaging business saw a 14% year-over-year decline, while the Industrial business grew 6% excluding discontinued product lines. Variable gross margin remained stable at 37%, and SG&A expenses decreased by 10% year-over-year. The company reported a net loss of $1.0 million, an improvement from a $3.6 million loss in Q2 2023.

On July 11, 2024, Good Natured Products, a North American leader in eco-friendly packaging, received an extension of their restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) from the Supreme Court of British Columbia. This extension, up to October 25, 2024, allows the company to continue operations while exploring sale or investment options through a Sale and Investment Solicitation Process (SISP) with Capital West Partners as the sales agent and Alvarez & Marsal Canada Inc. as the monitor.

The company secured debtor-in-possession financing from Wells Fargo Capital Finance Canada, with a maximum revolving loan limit of CAD $15.1 million. The financing includes interest rates of 3.50% for SOFR Loans, CORRA Loans, and Letter of Credit Fees, and 2.50% for Canadian Base Rate Loans and Base Rate Loans. The financing matures on September 27, 2024, extendable to October 25, 2024, contingent on receiving acceptable Phase 2 bids.

No changes have been made to the company's board or transfer agent since the initial order on June 28, 2024.

Good Natured Products, a leader in eco-friendly food packaging and plant-based products, has named Kevin Leong as interim CFO, effective July 19, 2024. Leong succeeds Kerry Biggs, who is leaving to pursue other opportunities. Leong, who has been with the company since 2017 and served as CFO from 2021 to 2022, will guide the company through its restructuring process. CEO Paul Antoniadis highlighted Leong's history with the company and his role in past growth. The transition is aimed at ensuring successful sale and investment processes in the coming months.

Good Natured Products, a leader in eco-friendly packaging and plant-based products, has announced a restructuring of its business operations to pursue sale and investment opportunities. The company has obtained an Initial Order from the Supreme Court of British Columbia under the Companies' Creditors Arrangement Act (CCAA) to restructure its financial affairs. The decision follows financial challenges, including increased debt servicing costs, reduced revenue from its industrial group, and lower than expected orders from a major US food producer. The restructuring aims to prioritize growth-oriented business sectors and transform operational capabilities. The company will continue operating normally, with Alvarez & Marsal Canada Inc. appointed as the monitor and no disruptions expected in product and service delivery. The board and management remain in place, and the company's shares are expected to transfer to the NEX board of the TSX-V.

Good Natured Products Inc. (TSXV: GDNP, OTCQB: GDNPF) announced the closing of its non-brokered private placement offering, generating gross proceeds of $938,399.88 through the issuance of 15,639,998 units at $0.06 per unit. Each unit includes one common share and one warrant, allowing the purchase of an additional share at $0.08 within thirty months. Insiders subscribed for 5,170,000 units, contributing $310,200. The funds will support working capital and cost reduction activities. Additionally, 2,553,125 restricted share units (RSUs) were granted to Board Members as part of their 2024 compensation. Newly elected board member Mark Munford received options for 112,500 common shares and 337,500 RSUs. All securities are subject to a statutory four-month hold period.

Good Natured Products announced that its CEO, Paul Antoniadis, will feature in a live session about sustainable packaging trends at the IDDBA 2024 tradeshow in Houston from June 9-11. The company focuses on eco-friendly food packaging, with key 2024 trends including the use of sustainable materials, maintaining product freshness, and providing affordable luxury in packaging. Good Natured aims to help businesses navigate complex packaging regulations and expand sales channels through customized, sustainable solutions. The team will showcase the latest plant-based packaging innovations at Booth #1728.

Good Natured Products (TSXV: GDNP, OTCQB: GDNPF) reported its Q1 2024 financial results, showing a 31% revenue decline to $14.1M from Q1 2023. Adjusted EBITDA decreased to $0.2M from $0.7M in Q1 2023. Despite challenges, the company achieved a variable gross margin of 40%, up from 38% in Q1 2023. SG&A expenses reduced to $2.7M from $3.6M in Q1 2023. Cash used in operating activities was $1.7M, with an ending cash balance of $4.3M. The net loss widened to $5.0M from $2.5M in Q1 2023, mainly due to higher financing costs. The company plans to discontinue its Commercial & Business Supplies group by the end of 2024 and is focusing on profitability through cost containment and product adjustments.

Good Natured Products Inc. announced the completion of the partial redemption of its convertible debentures. Debentureholders approved amendments to the debentures, resulting in a reduction of the principal amount. The company redeemed 50% of the original outstanding principal amount, issuing common shares and accrued interest to debentureholders. The transaction involved related party dealings with company officers acquiring common shares and accrued interest. The redemption is subject to final approval from the TSX Venture Exchange.