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.
Forward-Looking Information
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