Shepherd is a leading thermoformer with over 35 years’ experience and includes assets such as machinery, molds and a 42,000 square foot manufacturing facility, all located on 2.31 acres of land in the Greater Toronto Area of Brampton, Ontario.
The terms of the acquisition were first announced in a good natured® news release on March 3, 2020 and further details of the transaction were released by the Company on April 29, 2020.
The acquisition was an arm’s length transaction which closed in accordance with the terms and conditions as previously disclosed.
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The purchase price was financed through a combination of the previously announced $6 million BDC mortgage loan, $1.35 million in a vendor-take back promissory note, with the balance funded by drawdown of the Company’s previously announced June 2019 BDC credit facility.
“We’re very pleased to announce the completion of this acquisition, and welcome everyone at Shepherd to the good natured® family,” said Paul Antoniadis, CEO of good natured®.
“Shepherd grows our customer base with an addition of over 75 customers, our capabilities, and our market reach into Eastern Canada and the Northeast United States.”
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We are delighted to support an acquisition that marks a key milestone in good natured®’s history as well as its contribution to the adoption of plant-based plastics”, said Jahangir Bhatti, Director, Cleantech Practice at BDC.
“With its wide assortment of products and strategic Eastern Canada location, Shepherd is in good stance to fuel good natured®’s already robust growth.”
The Company also confirms, further to its news release of April 29, 2020, that today the Company completed the conversion of $1 million CAD of its existing long term credit facility with BDC by issuing 6,666,667 common shares (“Shares“) to BDC at a deemed price of $0.15 per Share (the “Debt Settlement Shares“), and issued 3,000,000 Shares to BDC with a deemed price of $0.15 per Share as a loan bonus under the same facility (the “Loan Bonus Shares“).
The Debt Settlement Shares and the Loan Bonus Shares are subject to a four month hold period expiring September 2020 under applicable securities laws.
$2,800,000 CAD Operating Line of Credit
The Company also announces that it has entered into a Sixth Supplemental Loan Agreement with Comerica Bank, the current senior lender to the Company, under which Comerica Bank will make available to the Company an additional $2.8 million CAD operating line of credit with interest at Prime Rate plus 0.5%, which is available for use upon the closing of the Company’s acquisition of Shepherd.
The line of credit will be used to fund ongoing growth for the Company and Shepherd through procurement of raw materials, production molds and new product inventories.
Published on goodnatured.ca