Mr. Donald Olds reports

GOODFOOD SEEKS CCAA PROTECTION & ANNOUNCES DIRECTOR RESIGNATION

Goodfood Market Corp. has filed an application with the Superior Court of Quebec (Commercial Division) seeking an initial order under the Companies' Creditors Arrangement Act (the CCAA) and the company has appointed Raymond Chabot Inc. (RCI) as monitor if the court grants the requested relief.

If the initial order is granted and RCI is appointed as monitor, the company intends to request at the comeback hearing that the court approve a formal sale and investment solicitation process (SISP). If approved, the SISP would provide interested parties with an opportunity to submit proposals for a sale of, or investment in, the company or its business with a view to identifying the transaction that maximizes value for the benefit of the company and its stakeholders. No transaction has been selected or approved at this stage.

The CCAA process is intended to provide the time and flexibility needed to pursue the company's financial restructuring while continuing to operate the business and implement its operational turnaround plan.

Goodfood has been implementing a turnaround plan focused on simplifying operations, reducing its cost structure and refocusing on its core meal solutions business while enhancing its customer offering. These initiatives have improved operating performance. However, Goodfood continues to face significant near-term liquidity constraints, including upcoming debt maturities and scheduled interest payments.

After carefully considering the available alternatives, Goodfood determined that a restructuring under the CCAA offers the best opportunity to preserve value, maintain business continuity and continue implementing its operational turnaround plan.

"We have made important progress in strengthening our business, but our near-term liquidity pressures require a more comprehensive solution," said Donald Olds, lead independent director. "The CCAA process will give us the time and flexibility to pursue our restructuring and continue implementing our turnaround plan."

Goodfood intends to continue serving customers across Canada while the restructuring proceeds under court supervision. Management remains focused on serving customers, supporting employees, and maintaining relationships with suppliers and other business partners throughout the CCAA process.

Customers can continue to place orders, and Goodfood will continue fulfilling customer orders in the ordinary course. The company will continue to deliver its ready-to-cook offering and continue its efforts to improve quality, convenience and protein choices.

Goodfood employs approximately 230 people across Canada, with operations in Montreal, Calgary and Mississauga. The company does not expect any job losses as a direct result of the CCAA proceedings. As part of its continuing operating improvements, the company may continue to make targeted work force adjustments where appropriate.

Goodfood expects to continue working with suppliers and business partners during the CCAA proceedings. As such, the Company anticipates that postfiling obligations to suppliers for goods and services will continue to be addressed in the normal course.

Goodfood will continue implementing its turnaround plan under court supervision and will provide updates as material developments occur.

Terry Yanofsky tendered her resignation from the board of directors effective the close of business, Aug. 4, noting that her prior engagements prevented her from being completely dedicated to supporting Goodfood through this busy restructuring period. Donald Olds, lead director, stated, "We would like to thank Terry for her support and contributions over the last seven years as a Goodfood director and wish her well in all of her future endeavours."

About Goodfood Market Corp.

Goodfood is Canada's leading digitally native meal solutions brand, delivering fresh meals that make it easy for customers nationwide to enjoy delicious, sustainable meals at home. Goodfood connects partner farms and suppliers directly to customers' kitchens, reducing food waste and retail overhead. Headquartered in Montreal, Que., with production facilities in Quebec and Alberta, Goodfood is building Canada's most-loved millennial food brand.

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