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CAN (ON): Slang Worldwide to wind down operations

Slang Worldwide has finalized a wind-down plan for the Company and its assets and subsidiaries with its secured lenders under the Company's credit and guaranty agreement dated November 15, 2021, as amended given that the Company does not anticipate being able to repay amounts owing under the Credit Agreement at the upcoming maturity date of November 15, 2024.

As part of the wind-down plan, it is anticipated that the following steps will be undertaken by the Company and its subsidiaries in the near term: (i) the disposition of the Company's assets in Colorado by way of a Colorado receivership proceeding involving the Company's Colorado subsidiaries; (ii) an assignment into bankruptcy of the Company pursuant to Canada's Bankruptcy and Insolvency Act; and (iii) a possible sale by the Company's Vermont subsidiaries of their respective assets, followed by an assignment for the benefit of creditors in respect of any remaining assets, all subject to local Vermont regulatory approval.

Despite the best efforts of the Company, it has been unable to attract a viable transaction to restructure its debts and/or seek any sales of the Company or of its assets in the normal course. The difficult decision to approve and enter into the wind-down plan was made after careful consideration of the current financial condition of the Company and its subsidiaries, the Company's inability to pay its liabilities as they become due, and negotiations between the Company and the Lenders. The Company anticipates that B. Riley Farber Inc. will be appointed as the trustee under the Bankruptcy Proceedings.

For more information:
Slang Worldwide
slangww.com

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