Dye & Durham responds to Plantro "false statements"

Executive Summary

• Dye & Durham Ltd. issued a formal rebuttal to Plantro Ltd., alleging that Plantro's recent press release contained "several factual inaccuracies."
• The company clarified its financial position regarding debt covenants, specifically addressing the use of proceeds from the sale of Credas to repay its revolving credit facility.
• Dye & Durham confirmed it remains in compliance with its debt agreements, asserting that using up to $30 million from Credas proceeds will keep revolver draws below 35% and maintain compliance through March 31, 2026.

Key Details

• Dispute Context: Dye & Durham is responding to comments made by Plantro Ltd., stating that Plantro's press release contains factual inaccuracies.
• Strategic Review: Dye & Durham is conducting a comprehensive strategic review process.
• Adviser Engagement: CIBC, acting as Dye & Durham's financial adviser, has engaged directly with Plantro to understand its proposal.
• Debt Covenant Clarification: The company stated it is permitted to use up to $30 million of the Credas sale proceeds to repay the revolving credit facility.
• Financial Compliance: Repayment of the $30 million from Credas proceeds will take revolver draws below 35%.
• Covenant Testing: The specific test applies only at quarter-end; with Credas proceeds and normal operating cash management, the company expects to remain in compliance at March 31, 2026.

Notable Quotes

• "Plantro's press release contains several factual inaccuracies."
• "Dye & Durham is fully committed to a comprehensive strategic review process, and CIBC, the company's financial adviser, has engaged directly with Plantro to understand its proposal."
• "The test applies only at quarter-end and with the Credas proceeds and normal operating cash management, we will remain in compliance at March 31, 2026."