TORONTO, May 30, 2023
/PRNewswire/ - WildBrain Ltd. ("WildBrain" or the
"Company") (TSX: WILD), a global leader in kids' and family
entertainment, announced today that Wildbrain Holdings LLC, a
wholly-owned subsidiary of the Company (the "Issuer"),
intends to repay the US$18.5 million
principal amount in outstanding exchangeable secured debentures
issued by the Issuer (the "Debentures") by exercising its
option to deliver variable voting shares to the holders of the
Debentures.
The Debentures were originally issued by the Issuer to certain
funds managed by Fine Capital Partners L.P. in June 2020 and March
2021 and mature on June 24,
2023 (the "Maturity Date"). As of the Maturity Date,
an aggregate of approximately US$3.8
million in accrued and unpaid interest will be outstanding
on the Debentures. Subject to certain conditions, including the
receipt of all necessary regulatory approvals, the Issuer has the
right to satisfy its obligation to pay all or any of the principal
and interest in respect of the Debentures by delivering variable
voting shares (valued at 95% of the 20-day VWAP of the variable
voting shares on the TSX as at the Maturity Date) in lieu of cash
(the "Share Repayment Right"). The Issuer has given written
notice to the Debenture holders that it is exercising the Share
Repayment Right in respect of 100% of the outstanding principal of,
and accrued and unpaid interest on, the Debentures, being an
aggregate amount of approximately US$22.3
million.
Notwithstanding WildBrain's exercise of the Share Repayment
Right, the Debentures continue to be exchangeable for variable
voting shares at a price of US$1.072855 per share at the option of the
holders of the Debentures at any time until the business day prior
to the Maturity Date.
The exercise of the Share Repayment Right is subject to certain
conditions, including, but not limited to, the approval of the
TSX.
For more information, please contact:
Investors: Kathleen Persaud – VP
Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089
Media: Shaun Smith – Sr.
Director, Global Communications & Public Relations,
WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations to run wild, engaging kids
and families everywhere with great content and beloved brands. With
approximately 13,000 half-hours of filmed entertainment in our
library—one of the world's most extensive—we are home to such
treasured franchises as Peanuts, Teletubbies, Strawberry Shortcake,
Yo Gabba Gabba!, Caillou, Inspector
Gadget and Degrassi. Our integrated, in-house capabilities spanning
production, distribution and licensing set us apart as a unique
independent player in the industry, managing IP across its entire
lifecycle, from concept to content to consumer products.
At our state-of-the-art animation studio in Vancouver, we produce award-winning,
fan-favourite series, such as The Snoopy Show; Snoopy in Space;
Sonic Prime; Chip and Potato; Strawberry Shortcake: Berry in the
Big City; Carmen Sandiego; Go, Dog.
Go! and many more. Enjoyed in more than 150 countries and on
over 500 streaming platforms and telecasters, our content is
everywhere kids and families view entertainment. WildBrain Spark,
our AVOD network, has garnered over 1 trillion minutes of watch
time on YouTube, offering one of the largest selections of kids'
content on that platform. Our leading consumer-products and
location-based entertainment agency, WildBrain CPLG, represents our
owned and partner properties in every major territory worldwide.
Our television group owns and operates some of Canada's most-viewed family entertainment
channels.
WildBrain is headquartered in Canada with offices worldwide and trades on
the Toronto Stock Exchange (TSX: WILD). Visit us at
wildbrain.com.
Forward-Looking Statements
This press release contains "forward-looking statements" under
applicable securities laws with respect to the Company including,
without limitation, statements regarding the Debentures and
Securities Purchase Agreement. Although the Company believes that
the expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties and are
based on information currently available to the Company. Actual
results or events may differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause actual results or events to differ materially from current
expectations, among other things, include the availability of and
cost of financing, general economic and market conditions and the
impact of such conditions on the industries in which WildBrain
operates, competition and the potential impact of industry mergers
and acquisitions, market factors, WildBrain's ability to identify
and execute anticipated production, distribution, licensing and
other contracts, contractual counterparty risk, the ability of
WildBrain to realize the expected value of its assets, supply chain
and other related disruptions, and risk factors discussed in
materials filed with applicable securities regulatory authorities
from time to time including matters discussed under "Risk Factors"
in the Company's most recent Annual Information Form and annual
Management Discussion and Analysis. These forward-looking
statements are made as of the date hereof, and the Company assumes
no obligation to update or revise them to reflect new events or
circumstances, except as required by law.
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SOURCE WildBrain Ltd.