The Very Good Food Company Inc. (NASDAQ: VGFC) (TSXV: VERY.V) (FSE: OSI) ("VERY GOOD" or the "Company") today announced that it has determined that it is not in compliance with the cash coverage ratio financial covenant of not less than 2.50:1:00, as required pursuant to the terms of its loan agreement (the "Loan Agreement") with Waygar Capital Inc. ("Waygar"), which occurrence constitutes an event of default under the Loan Agreement (the "Default").
Waygar has subsequently issued a reservation of rights letter to the Company, notifying the Company that it does not intend to take any action in respect of the Default at this time, without waiving any of its legal rights under the Loan Agreement.
The Company continues to work closely and collaboratively with Waygar to reach a resolution, while it continues to explore strategic alternatives. However, there can be no assurance that Waygar will not proceed to enforce all rights available to it under the Loan Agreement.
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