Wildpack Achieves Record Monthly Throughput of 18.7 Million Equivalent Cans and Grants Stock Options/RSUs

Rhea-AI Summary

Wildpack Beverage Inc. (OTCQB: WLDPF) reported remarkable production growth for June 2022. Achieving an equivalent of 18.7 million standard 12-ounce cans, throughput rose by 18% month-over-month. Major operational highlights included 98% growth in can decorating, 72% in sleeve printing, and 17% in can filling. Total sales orders reached 153, a 26% improvement MoM, with new customer conversions doubling. Plant utilization surged to 38%, marking a 76% increase. Additionally, the Board granted stock options and RSUs to key employees.

Positive

• 18.7 million cans throughput, up 18% MoM.
• Can decorating throughput increased by 98% MoM.
• Total sales orders reached 153, a 26% MoM improvement.
• Plant utilization improved to 38%, up 76% MoM.
• New customer conversions improved by 100% MoM.

Negative

• Add-on business of packaging sales decreased by 47% MoM.

Highlights

• New record Can Decorating throughput, 98% growth month-over-month
• New record Sleeve Printing, 72% growth month-over-month
• New record Can Filling throughput, 17% growth month-over-month
• June throughput of 18.7 million equivalent standard 12-ounce cans
• Can Filling and Decorating yields maintained above 90%
• Record 153 total sales orders, a 26% improvement month-over-month
• New customer conversions improved 100% month-over-month
• Record Plant Utilization of 38% in June, a 76% improvement month-over-month

VANCOUVER, BC / ACCESSWIRE / July 12, 2022 / Wildpack Beverage Inc. (TSXV:CANS)(OTCQB:WLDPF) ("Wildpack" or the "Company"), a U.S. national beverage co-packer and packaging supplier focused on the aluminum can format, announces June production.

Mitch Barnard, Chief Executive Officer commented, "We are proud of the agility and grit demonstrated by The Pack in June. We made significant leadership changes in the last couple of months putting the remaining leaders directly into the action. This in-the-trench bias has achieved the desired outcome, being a positive build in utilization and elevated business levels. There most certainly will be speed bumps as we continue to drive structural and operational change, however the trend is strongly positive with higher highs and higher lows."

June Operations Update

June equivalent standard 12-ounce can throughput was 18.7 million, a month-over-month ("MoM") increase of 18%. Wildpack's throughput results, which include cans and can equivalents, are trending towards profitability and positive cashflow. In the month, can decorating, can filling and sleeve printing operations all achieved new record throughput. Can decorating achieved 6.4 million units, a 98% MoM improvement, can filling achieved 1.4 million units, a 17% MoM improvement, and printing operations continued to improve, with 4.0 million units produced along with several single day records. Can brokering increased 18% MoM while the add on business of packaging sales decreased 47% MoM due to customers drawing down their existing packaging inventory. Wildpack's total sales orders for the month of June set a record of 153, a 26% MoM improvement, with 24 new customer conversions.

As reported in Wildpack's first quarter financials, plant utilization was 15.8%, whereas in June this dramatically improved to 37.8%, an increase of 139% from first quarter averages, and a 76% MoM improvement, all trending toward our operational goals. Production line yields have remained above 90% for the duration of the month despite the increase in utilization.

Key Employee, Officer, and Director Grants

Wildpack's Board of Directors (the "Board") has approved the grant of an aggregate of 852,000 common share options (each, an "Option") to its officers, pursuant to the Company's omnibus incentive plan (the "Plan") at an exercise price of C$0.55. Each Option shall vest, per the agreement, upon achievement of certain milestones. If the milestones are not met, the applicable Options will be null and void. Each Option represents the right to receive, once vested, one common share of the Company and is exercisable until December 31, 2025.

The Company also announced the Board has approved the grant of an aggregate of 1,573,124 restricted share units (each, a "RSU") to certain of its key employees and directors pursuant to the Plan. Each RSU shall vest, per the agreement, over various periods qualified by time and/or the achievement of certain milestones. If the milestones are not met, the applicable RSUs will be null and void. Each RSU represents the right to receive, once vested, one common share of the Company.

All Options and RSUs were granted pursuant and subject to the terms of the Plan, the applicable grant agreement, and the requirements of the TSX Venture Exchange.

Per: "Mitch Barnard"

Mitch Barnard
Chief Executive Officer and Director

For further information, please contact us at:
invest@wildpackbev.com

or

Elijah Clare
Vice President, Investor Relations
elijah@wildpackbev.com

Advisors

Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.

Visit our investor website at:
https://investor.wildpackbev.com

About Wildpack

Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing sustainable aluminum can filling, decorating, packaging, and sleeve and label printing services to brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of six facilities in Baltimore, Maryland, Grand Rapids, Michigan, Atlanta, Georgia, Longmont, Colorado, Sacramento, California and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack commenced trading on the TSX Venture Exchange under the symbol "CANS" on May 19, 2021, and on the OTCQB® Venture Market under the symbol "WLDPF" on February 23, 2022.

Cautionary Statement on Forward Looking Information

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to Wildpack's plans, financial performance and operating performance, anticipated growth in co-packing business, the estimation of revenue, the timing and targets of M&A activity, costs, future capital expenditures, and the success of integration. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks including but not limited to: risks related to the successful integration of acquisitions; risks related to operations; risks related to general economic conditions and credit availability, ability to obtain sufficient and suitable financing, actual results of current production and decorating, fluctuations in prices of aluminum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the co-packaging industry; delays in the completion of capex activities, changes in national and local government regulation of manufacturing operations and labour laws in light of the current COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack operates. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements expressed or implied by Wildpack are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Although Wildpack has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties related to Wildpack's business, including that Wildpack's assumptions in making forward-looking statements may prove to be incorrect; delays in filing of financial information; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Wildpack Beverage Inc.

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FAQ

What were Wildpack's throughput numbers in June 2022?

In June 2022, Wildpack achieved a throughput of 18.7 million equivalent standard 12-ounce cans, marking an 18% increase month-over-month.

How much did can decorating throughput grow in June 2022?

Can decorating throughput grew by 98% month-over-month in June 2022.

What record did Wildpack set for sales orders in June 2022?

Wildpack set a record of 153 total sales orders in June 2022, which is a 26% improvement month-over-month.

What was the improvement in plant utilization for Wildpack in June 2022?

Plant utilization improved significantly to 38% in June 2022, up 76% month-over-month.

How many new customer conversions did Wildpack have in June 2022?

Wildpack achieved a 100% improvement in new customer conversions in June 2022.