Mr. Ghassan Halazon reports

EMERGE HIGHLIGHTS KEY GROWTH INITIATIVES FOR TRULOCAL IN 2024

Emerge Commerce Ltd. has provided the following corporate update, highlighting key growth initiatives and drivers for truLOCAL in 2024.

truLOCAL, Emerge's premium meat and seafood subscription brand, and Emerge's largest business by revenue and profit, is in the process of rolling out a number of initiatives aimed at building on the recent momentum, and driving organic growth in 2024, including:

1. Corporate gifting: truLOCAL secured approximately $450,000 in corporate orders in Q4 2023, driven by a large multinational corporate order (over 2,000 employees), in addition to a number of smaller orders from other corporate customers. truLOCAL intends to build out its corporate gifting/B2B (business-to-business) business, positioning truLOCAL subscription boxes as a fresh take on employee perks and client gifts with a focus on a healthy diet, while supporting local farmers.
2. Customer acquisition traction: In January, 2024, truLOCAL saw its largest influx of net new customers since Q2 2020 (peak pandemic), with continued traction on the customer acquisition front in Q1 to date. The main driver for these encouraging results is its revamped marketing program and strategy. Given truLOCAL's favourable customer lifetime value (CLTV) to customer acquisition cost (CAC), Emerge intends on accelerating its marketing efforts to drive efficient growth with a focus on high CLTV members at reasonable CACs, rather than seeking one-time customers.
3. Curated boxes: truLOCAL has previously seen success with curated boxes during various holidays/seasonal occasions. Emerge plans to grow its assortment and collaborate with other brand partners, including with truLOCAL sister site, Carnivore Club. Live curated box examples include Date Night, Steak Lovers, Fish Faves, and Classic Clean and Lean. box.
4. Advertising program: truLOCAL is in the early stages of rolling out a high-margin, advertising revenue line, leveraging its on-line and off-line distribution coupled with its extended advertising relationships established by other Emerge brands. truLOCAL members are digitally savvy, health-conscious and high income. The company anticipates strong premium advertiser demand to reach such a prized demographic.

"The recent $450,000 or so in corporate orders is an example of how the truLOCAL brand and business have the potential to extend far beyond our core consumer subscription offering, which itself remains an area of vast growth potential. We fully intend on leveraging the highly respected truLOCAL brand along with our long-standing relationships in the space to unlock new organic growth drivers in the near term. Between the positive customer acquisition traction we are seeing lately, as well as key initiatives being scaled such as corporate gifting, curated boxes and our advertising program, we believe truLOCAL is on the right path to not only reignite revenue growth again, but to also capture a larger piece of the multibillion-dollar on-line meat and seafood/e-grocery opportunity in 2024 and beyond," commented Ghassan Halazon, founder and chief executive officer, Emerge Commerce.

About Emerge Commerce Ltd.

Emerge is a premium e-commerce brand portfolio in Canada and the United States. Its subscription and marketplace e-commerce properties provide its members with access to unique offerings across grocery and golf verticals. The company's grocery businesses include truLOCAL.ca, its premium meat and seafood subscription brand, and Carnivore Club, its artisanal meat subscription brand. Emerge's golf businesses include UnderPar, its discounted golf experiences brand, and JustGolfStuff, its golf products and apparel brand.

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