MAV Beauty Brands Announces Conclusion of Strategic Review Process
VAUGHAN, ON, July 12, 2021 /CNW/ - MAV Beauty Brands Inc. ("MAV Beauty Brands" or the "Company") (TSX: MAV), a global personal care platform, announced today that its Board of Directors has concluded its previously announced strategic review process.
With the assistance of its external advisors, the Special Committee of the Board conducted an extensive review and evaluation of a number of potential strategic alternatives available to the Company. Based on this extensive review, the Board believes that focusing on the Company's organic growth strategy, including e-commerce, leveraging its operating platform to scale independent brands and improve margins, and pursuing accretive acquisitions is currently the best alternative for maximizing value for shareholders. While the Board remains open to evaluating strategic opportunities that would further enhance shareholder value, it has decided, upon the recommendation of the Special Committee, that it is in the best interests of shareholders to conclude the current strategic review process.
Amendment to Credit Facilities
The Company also announced today that it has amended its existing credit facilities to, among other things, improve the quarterly financial covenant test and provide for benchmark replacement provisions. As a result, the Company's total net leverage ratio over the prior four quarters (calculated pursuant to the credit facilities which includes certain permitted adjustments to earnings) may not be greater than (i) 4.50 times for the test period ending on June 30, 2021, (ii) 4.25 times for the test period ending on September 30, 2021, and (iii) 4.00 times for the test periods ending thereafter.
About MAV Beauty Brands (TSX:MAV)
MAV Beauty Brands is a global personal care platform focused on acquiring great independent brands and helping these brands to scale and win market share. We have built an operating platform to build brands through expanded distribution, innovation, and marketing. Today, we have a diversified portfolio of four complementary personal care brands – Marc Anthony, Renpure, Cake Beauty and The Mane Choice – offering premium quality hair care, body care and beauty products. These products are sold in over 25 countries around the world and in more than 100 of the world's largest retailers.
Certain information in this press release, including statements related to the Company's strategies for maximizing value for shareholders, constitutes forward looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Although the Company believes that the forward-looking statements in this press release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond the Company's control and the effects of which can be difficult to predict: (a) the duration, severity and risks of the COVID-19 pandemic and the resulting impact on the Company's sales, operations and business, and (b) other risks inherent to the Company's business and/or factors beyond its control which could have a material adverse effect on the Company.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by MAV Beauty Brands as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's Annual Information Form dated March 30, 2021 for the year ended December 31, 2020 and the Company's other periodic filings made available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect MAV Beauty Brands; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and MAV Beauty Brands expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE MAV Beauty Brands
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