Vancouver, British Columbia, May 19, 2022 (Newsfile Corp via COMTEX) -- Vancouver, British Columbia--(Newsfile Corp. - May 19, 2022) - good natured Products Inc. /zigman2/quotes/200277468/delayed CA:GDNP -1.79% (the "Company" or " good natured® "), a North American leader in plant-based products, today announced that the Company has filed amended and restated annual financial statements (the "Amended and Restated Financial Statements") and the accompanying management's discussion and analysis (the " MD&A ") for the year ended December 31, 2021 (together with the Amended and Restated Financial Statements, the "Restated Documents").
Further to the Company's press releases dated May 9, 2022 and May 12, 2022, subsequent to the filing of its audited year end documents, the Company was made aware of an apparent breach of its fixed charge coverage ratio ("FCCR") covenant under the senior credit agreement dated October 28, 2021 between the Company and its primary lender (the " Senior Credit Facility "). Although the Company continues to consider this a matter of interpretation, it has accepted the interpretation of its primary lender and remains engaged in discussions with the primary lender regarding a plan to remedy the default. Accordingly, the Company has made the determination to file Restated Documents to reflect the default. The restatement solely impacted the consolidated statement of financial position as at December 31, 2021 and had no impact on the consolidated statements of net loss and comprehensive loss, changes in shareholders' equity (deficiency) and cash flow for the years ended December 31, 2021 and December 31, 2020.
International Financial Reporting Standards (" IFRS ") requires the Company to reclassify the Senior Credit Facility and other long-term debt. Accordingly, the statement of financial position as at December 31, 2021 has been restated to reclassify $36,631 of debt associated with the Senior Credit Facility, the Company's 2021 convertible debentures and a mortgage from long-term debt to current portion of long-term debt. For clarity, the Company is not in breach of its obligations under the 2021 convertible debentures and the above-mentioned mortgage. Full details of the change are described in Note 2A of the Amended and Restated Financial Statements.
The Restated Documents are available on SEDAR at www.sedar.com and replace and supersede in all respects the respective previously filed financial statements and MD&A for the year ended December 31, 2021 (together, the " Previous Documents "). The Previous Documents should no longer be relied upon.
The good natured ® corporate profile can be found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good natured ® is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The Company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products ® that use more renewable materials, less fossil fuel, and no chemicals of concern.
good natured ® offers over 400 products and services through wholesale, direct to business, and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the Company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis - Executive Chair & CEO
1-877-286-0617 ext. 113
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
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