Mr. Bill Besenhofer reports

THE FRESH FACTORY ANNOUNCES LISTING ON THE TSX VENTURE EXCHANGE

The Fresh Factory B.C. Ltd. has received final approval from the TSX Venture Exchange for the listing of its subordinate voting shares. The shares will begin trading on the TSX-V, effective market open on Oct. 5, 2023.

The company's trading symbol (FRSH) and Cusip for the shares will remain unchanged, and shareholders will not be required to take any action in connection with the TSX-V listing.

In connection with the listing of the shares on the TSX-V, the shares will no longer trade on the Canadian Securities Exchange and will be voluntarily delisted from the CSE, effective at the close of the market today.

"The Fresh Factory has built the platform for the future of the food and beverage industry, providing honest food for all in a sustainable way," said Bill Besenhofer, chief executive officer and co-founder of The Fresh Factory. "We are thrilled to be part of the TSX Venture Exchange, ready to embark on the next stage of growth and open to engaging with a wider range of investors. We're excited to be the ones serving the growing demand for clean-label, better-for-you products using fresh ingredients without artificial additives and preservatives, becoming a trusted partner in the process."

Recent key highlights for The Fresh Factory:

• Billed revenue increased to $15.2-million in first half 2023, marking a substantial 30.0-per-cent year-over-year increase. Additionally, second quarter 2023 saw an enhanced adjusted gross margin of 29.2 per cent.
• On Sept. 6, 2023, the company completed a $2.0-million (U.S.) sale-leaseback financing, providing essential resources for the business expansion.
• The company's strategic focus is set on achieving adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) positivity by year-end, with a long-term goal of realizing net income profitability in 2024.

Normal course issuer bid

The company also announces it has received approval from the TSX-V to commence a normal course issuer bid, which will commence on Oct. 9, 2023, and end on Oct. 8, 2024.

Under the NCIB, the company may purchase for cancellation, through the facilities of TSX-V, other designated exchanges and/or alternative Canadian trading systems, if in the best interest of the company, a maximum of 916,223 shares, which represent approximately 10 per cent of the company's public float as at the date hereof. Over the course of any 30-day period, the company will not purchase more than 215,767 shares in total, which represent approximately 2 per cent of the company's issued and outstanding as at the date hereof. The price which the company will pay for any such shares will be the prevailing market price at the time of acquisition, and all shares will be purchased for cancellation.

Canaccord Genuity Corp. will be handling the NCIB on behalf of the company. The actual number of shares that may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by the management of the company.

The board of directors of the company believes the underlying value of the company may not be reflected in the current market price of its shares. As a result, depending upon future price movements and other factors, the board believes that the shares may represent an attractive investment to the company and the best interests of the company and its shareholders. Furthermore, the purchases are expected to benefit all persons who continue to hold shares by increasing their equity interest in the company if the repurchased shares are cancelled.

The NCIB supersedes and replaces the company's previous normal course issuer bid that originally commenced on Aug. 2, 2023, which is terminated effective as of the date hereof.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefit corporation, The Fresh Factory is environmental, social and governance focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole.

We seek Safe Harbor.