Yahoo Finance Wildpack Announces Partnership with EHPlabs, Investment by Izhar Basha (Founder and CEO of EHPlabs) and his Appointment to the Board
Highlights:
Two-year contract with EHPlabs to produce their flagship product OxyShred for US distribution
Production includes can decoration, filling, ingredient procurement and package brokering
Production of approximately 7 million, 30 million and 40 million cans in the remainder of 2022, 2023 and 2024 respectively
US$1.0 million private placement by Izhar Basha
Appointment of Izhar Basha, founder and Chief Executive of EHPlabs, to Wildpack's Board of Directors (subject to TSXV and corporate approvals)
VANCOUVER, BC / ACCESSWIRE / October 31, 2022 / Wildpack Beverage Inc. (TSXV:CANS) (OTCQB:WLDPF) ("Wildpack" or the "Company") today announces that it has entered into a long-term packaging supply and manufacturing agreement (the "Agreement") with EHPlabs LLC ("EHPlabs"). In addition to entering into the Agreement, Izhar Basha, Chief Executive Officer of EHPlabs, will make a private placement into Wildpack and be appointed to the Board of Directors (subject to required approvals, including that of the TSXV).
"Our partnership with EHPlabs is our biggest win to date. It validates our key thesis that beverage brands want a partner to operationalize their brands, freeing them up to focus on sales and marketing. In addition to entering into the packaging agreement, which is our largest since inception, we anticipate that Izhar joining our Board of Directors and becoming a major investor may be equally impactful to the growth of Wildpack . Izhar is a visionary entrepreneur with a massive amount of brand experience who has the ability to provide our business with critical insights into customer needs. I am very excited for his mentorship as we continue to build Wildpack into the leading force in beverage manufacturing" said Mitch Barnard, Chief Executive Officer of Wildpack.
"When I founded EHPlabs, we strived to ‘Empower Human Potential' and I feel strongly that this partnership reflects that culture," commented Izhar Basha. "EHPlabs has continued to grow global market share by focusing on high quality production of scientifically proven supplements that deliver results. Wildpack embodies the culture and values that we require for manufacturing excellence, and I am excited to lend my experience and mentorship with this investment and seat on the Board."
EHPlabs
EHPlabs is a global sports supplement brand dedicated to researching and formulating high quality and efficacious products in the fitness industry. The primary objective for EHPlabs is to assist people with their health and fitness goals and to maximize their physical performance and recovery. Globally renowned for its flagship product, OxyShred, EHPlabs has assisted millions of people to achieve their weight loss and overall health and fitness goals.
Packaging Agreement
Under the terms of the Agreement, Wildpack has committed to produce 30 million units in 2023 and 40 million units in 2024. Wildpack is currently commencing fulfillment of 7 million units of rush demand in 2022. Each unit includes the supply of an aluminum can, can end, can decorating and filling services, utilizing all Wildpack's fully integrated services at their Las Vegas facility. During the term, Wildpack will begin supplying the raw materials for the different flavours of Oxyshred, EHPlabs' flagship brand.
Private Placement
Izhar Basha is subscribing for, on a non-brokered private placement basis, 8,097,166 common shares (each, a "Share") in the Company, at a price per share of C$0.17, for aggregate proceeds of US$1,000,000 (the "Offering"). Upon completion of the Offering, Mr. Basha's resulting ownership will be approximately 7.38% of the Company's issued and outstanding common shares. Wildpack will use the proceeds of the Offering primarily to fund working capital related to this increase in utilization.
Appointment of Izhar Basha to the Board of Directors
Izhar Basha is the founder, Chief Executive Officer, and majority shareholder of EHPlabs. Mr. Basha is educated as an attorney and practiced at a leading Australian firm before founding EHPlabs. Mr. Basha has won numerous awards including Sydney Young Entrepreneur of the Year and EY Entrepreneur of the Year.
EHPlabs has grown over a ten-year period from a single supplement store to a near billion-dollar global supplement company with major distribution in Australia, the United States and Canada. The rapid success of EHPlabs has been the result of a relentless focus on making things better by making better things. Mr. Basha will bring this product excellence focus to Wildpack's Board of Directors providing invaluable insights into customer needs.
Mr. Basha's appointment is subject to certain corporate approvals, along with TSXV approval.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
For further information, please contact us at:
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, brokering, sleeve/label printing services, and logistics 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 the completion of the Offering; the fulfillment of production commitments under the Agreement; and the anticipated impact Wildpack's business arising from the entering into of the Agreement, completion of the Offering and the appointment of Izhar Basha to the Board of Directors . 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: Wildpack obtaining regulatory approval of the Offering; the ability of Wildpack to fulfill its production commitments under the Agreement; 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, 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; failure to obtain regulatory approval of the Offering; 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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