Mr. Hamutal Yitzhak reports

ELSE PREPARES TO ENTER THE $52B GLOBAL KIDS NUTRITION MARKET WITH READY-TO-DRINK KIDS NUTRITIONAL SHAKES

Else Nutrition Holdings Inc. will introduce its first-ever ready-to-drink (RTD) products in the form of kids nutritional shakes in vanilla and chocolate flavours. These will be unveiled at the upcoming Natural Products Expo East in September, 2023, at booth 2238. This debut marks the company's significant expansion from its successful powdered product range into the larger, fast-growing RTD market.

Leveraging the impressive performance of their powdered nutritional drinks and protein shakes for kids, which emerged as the fastest-growing products in the "infant formula and toddler nutrition drink" category in the natural channel in 2022, Else Nutrition is now taking a significant step into the larger RTD market, capitalizing on their acclaimed quality and plant-powered nutrition.

The kids nutrition market revenues were estimated at $52-billion (U.S.) in 2022 and are anticipated to grow at a CAGR (compound annual growth rate) of 5.5 per cent from 2023 to 2033, according to a recently published Persistence Market Research report. By the end of 2033, the market is expected to reach a valuation of $94.5-billion (U.S.). North America accounts for 31.6 per cent of the kid's nutrition ready-to-drink global market.

Particularly throughout the early, formative years of life, children require nutrient-rich diets for healthy growth and development. Long-term selective eating in children can prevent them from receiving a complete and balanced diet, which can cause major health problems such as immunological deficiencies, malnutrition, decreased muscle mass, deteriorated bone health and stunting which can have long-term effects from bad health outcomes.

Today's parents are worried about their children's eating habits, especially working parents. Globally, there is a rapid increase in the number of working moms. This may result in an unbalanced diet for their child. They may not get an adequate amount of nutrients. This is a serious issue that many parents are facing.

To overcome this and to ensure that their child is availed of all the nutrients, parents prefer nutritious products present on the market.

"This is an exciting moment for Else Nutrition. Breaking into the larger RTD market signifies a substantial growth opportunity, building upon the success of our powdered products," says Hamutal Yitzhak, chief executive officer and co-founder of Else Nutrition. "We welcome all retailers and interested parties to join us at Expo East, as we continue to revolutionize children's nutrition."

Like their powdered counterparts, these new RTD kids nutritional shakes are Clean Label Project Purity certified, free from chemicals of concern, as well as industrial and environmental toxins, including heavy metals. They are free of gluten, dairy, soy, corn syrup and GMOs (genetically modified organisms), packed with protein, healthy carbs, healthy fats and over 20 essential nutrients. Notably, they contain significantly less sugar than leading brands, illustrating Else Nutrition's commitment to clean, minimally processed nutrition.

After their unveiling at Natural Products Expo East (booth No. 2238 from Sept. 21 to Sept. 23), the shakes will be available across the United States. Notably, Else nutrition kids shakes powdered products have been approved for U.S. federal insurance billing, making them more accessible to families nationwide.

Additionally, the company announces that it has extended the vesting deadline for an aggregate of 31,801,492 performance warrants by two years to June 12, 2027.

The performance warrants were issued to certain key members of management of the company in connection with the completion of the company's qualifying transaction on June 12, 2019. Each performance warrant entitles the holder to receive one common share of the company, with vesting of the performance warrants occurring in stages upon achieving certain business milestones. The vesting deadline for the performance warrants was previously extended to June 12, 2025, in 2021 due to industry delays resulting from COVID-19. As amended, all performance warrants that have not been vested by June 12, 2027, will expire.

The extension of the performance warrants was approved by shareholder vote, excluding the votes of the holders of the performance warrants, at the company's shareholder meeting held on June 29, 2023. A description of the business milestones is provided in the meeting materials sent to shareholders and is available on SEDAR. The company has also received conditional approval of the Toronto Stock Exchange to the extension of the vesting deadline of the performance warrants.

The amendment of performance warrants constitutes a related party transaction as contemplated by Multilateral Instrument 61-101 -- Protection of Minority Shareholders in Special Transactions. The amendment is exempt from the valuation requirement under Section 5.5(a) of MI 61-101 as the amendment represents less than 25 per cent of the market capitalization of the company.

About Else Nutrition Holdings Inc.

Else Nutrition Holdings is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its plant-based complete nutrition for toddlers, made of whole foods, almonds, buckwheat and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

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