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Wayland has court approval for $10.05M DIP financing

2019-12-16 21:53 ET - News Release

Ms. Tammy Muradova of PricewaterhouseCoopers reports


Wayland Group Corp., Maricann Inc. and NanoLeaf Technologies Inc. have been granted a second amended and restated initial order from the Ontario Superior Court of Justice (commercial list) under the Companies' Creditors Arrangement Act (the CCAA).

The comeback order authorizes the Wayland Group to obtain additional debtor-in-possession financing from the House of Turlock Ltd. (the DIP lender) pursuant to an amended DIP commitment letter (the amended DIP facility). Under the terms of the amended DIP facility, the DIP lender has agreed to provide advances under the amended DIP facility up to a maximum amount of $10.05-million, subject to the satisfaction of applicable conditions. This amount includes the initial advance of $1.15-million previously disclosed on Dec. 5, 2019. The amended DIP facility is secured by a priority security interest over all of the property of the Wayland Group and will accrue interest at a rate of 4 per cent per annum. No additional commitment fees will be payable with respect to subsequent advances under the amended DIP facility.

The amended DIP facility is intended to provide the Wayland Group with financing to continue operations during its CCAA proceeding, to finance necessary capital expenditures that are agreed to by the DIP lender, with the consent of PricewaterhouseCoopers Inc., in its capacity as monitor of the Wayland Group, and to conduct a sale and investment solicitation process and consummate any transaction resulting from that process. The Wayland Group intends to work with its advisers and the monitor to identify and consider potential sale, investment, recapitalization and restructuring transactions, and anticipates that it will seek court approval of the proposed terms and timelines of its SISP in early 2020. Wayland can offer no assurance that the conditions to drawing further amounts under the amended DIP facility will be satisfied or that any potential restructuring transaction will be identified or consummated by Wayland on terms satisfactory to it or at all. Wayland expects to provide a further update following the granting of the anticipated SISP order.

In addition, the comeback order extended the stay of proceedings against the Wayland Group until Jan. 31, 2020. The stay extension will allow the Wayland Group to continue operating as a going concern as it develops the SISP and pursues various restructuring options.

About Wayland Group Corp.

Wayland is a vertically integrated cultivator and processor of cannabis. Wayland was founded in 2013 and is based in Burlington, Ont., Canada, and Munich, Germany, with production facilities in Langton, Ont., where it operates a cannabis cultivation, extraction, formulation and distribution business under federal licences from the government of Canada. Wayland also has production operations in Dresden, Saxony, Germany, Regensdorf, Switzerland, and Allesandria, Piedmont, Italy.

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