Wildpack Achieves Record Printing and Can Decorating Throughput and Announces Auditor has Declined to Stand for Reappointment

Rhea-AI Summary

Wildpack Beverage Inc. (OTCQB: WLDPF) reported significant operational improvements for May 2022, achieving a 19% growth in sleeve printing and a 32% increase in can decorating throughput month-over-month. The company processed 15.9 million cans and maintained over 90% yield in can filling and decorating. Total orders rose 29% month-over-month. Plant utilization also improved to 21.5%, marking a 36% increase since Q1. However, the resignation of the former auditor adds uncertainty as Wildpack seeks a replacement.

Positive

• 19% month-over-month growth in sleeve printing throughput.
• 32% month-over-month growth in can decorating throughput.
• Total can throughput of 15.9 million cans in May.
• Total orders improved by 29% month-over-month.
• Plant utilization increased by 36% from Q1 to 21.5%.

Negative

• Former auditor declined to stand for reappointment, creating a leadership gap.

Highlights

• Record Sleeve Printing throughput, 19% growth month-over-month
• New record Can Decorating throughput, 32% growth month-over-month
• May can throughput of 15.9 million
• Can Filling and Decorating yields maintained above 90%
• Total orders improved 29% month-over-month
• Plant Utilization 21.5% in May was 36% higher than Q1 Plant Utilization

VANCOUVER, BC / ACCESSWIRE / June 14, 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 an update on our production initiatives and a corporate update for May.

"Organic growth remains our primary focus. The macro backdrop of escalating cost of capital, supply chain challenges and the impact of seasonality require discipline," commented Mitch Barnard, Chief Executive Officer. "I am proud of The Pack's ability to adapt, and embrace three core initiatives, to earn more from our customers, to improve per can economics and to reduce overall costs."

Operations Update

May can throughput was 15.9 million. As previously announced during Wildpack's first quarter earnings call, the previous can throughput guidance of 300 million does not reflect our current strategy and the guidance for 2022 is US$40-55 million in revenue. Monthly throughput results, which include cans and can equivalents, met management's expectations as we continue toward financial profitability and positive cashflow. Our printing operations continue to improve, increasing production by 19%. Our highest margin revenue source, can filling, improved month-over-month throughput by 32%. Wildpack's total orders were 121 in May, an improvement of 29% month-over-month with 12 new customer conversion to order.

In the first quarter Wildpack had a plant utilization of 15.8%, in May this improved to 21.5% a positive increase of 36% and trending toward our operational goals. Production line yields have remained above 90% for the duration of the month despite the increase in utilization.

Corporate Update

Wildpack announces that it engaged in a digital media marketing campaign with Ryan Hemsley, Shadd Dales & Departures Capital (the "Digital Marketing Providers"). Under the terms of the campaign, the Digital Marketing Providers hosted management on video calls and provided a combination of content development, web development, media buying and distribution to Wildpack at a total cost of C$13,314, with cash on hand, over a one-month period, commencing and concluding October 2021. The appointment of the Digital Marketing Providers was subject to normal course approval by the TSX Venture Exchange.

Wildpack also announced today that its auditor, PricewaterhouseCoopers LLP (the "Former Auditor") has declined to stand for reappointment, at the Former Auditor's own initiative, with an effective resignation date being June 1, 2022.

As of the date hereof, Wildpack has not yet appointed a successor auditor, although a conventional process is advancing with a replacement audit firm, among the tenders received, to fill the vacancy as required under National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102").

In accordance with NI 51-102, Wildpack has delivered a copy of a change of auditor notice (the "Notice") to the Former Auditor and the Former Auditor has provided its written response confirming that it agrees with the statements set forth in the Notice, which has been filed on SEDAR. Wildpack will press release when a successor auditor to the Former Auditor has been appointed, including whether the successor auditor agrees with the statements in the Notice.

The Former Auditor's reports with respect to Wildpack's financial statements for the fiscal year ended December 31, 2021, and nine-months ended December 31, 2020, did not contain a modified opinion and no "reportable event" (as such term is defined in NI 51-102) has occurred during the periods covered by such financial statements or to the resignation date of the Former Auditor.

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 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.

View source version on accesswire.com:
https://www.accesswire.com/705085/Wildpack-Achieves-Record-Printing-and-Can-Decorating-Throughput-and-Announces-Auditor-has-Declined-to-Stand-for-Reappointment

FAQ

What were Wildpack Beverage's production results for May 2022?

Wildpack achieved a throughput of 15.9 million cans and reported a 19% increase in sleeve printing and a 32% increase in can decorating month-over-month.

How much did Wildpack's total orders increase in May 2022?

Total orders improved by 29% month-over-month in May 2022.

What is the current status of Wildpack's auditor?

Wildpack's former auditor, PricewaterhouseCoopers LLP, declined to stand for reappointment effective June 1, 2022, and the company is in the process of appointing a successor.

What is the plant utilization percentage for Wildpack in May 2022?

The plant utilization for Wildpack in May 2022 was 21.5%, a 36% increase compared to the first quarter.