Mr. Vincent Narang reports

GREEN RISE FOODS ANNOUNCES RECORD Q2 FISCAL 2023 FINANCIAL RESULTS

Green Rise Foods Inc. has released its interim condensed consolidated financial results for the three- and six-month periods ended June 30, 2023.

The complete interim condensed consolidated financial statements and associated management's discussion and analysis are available under the company's profile at SEDAR+.

Selected highlights for the three- and six-month periods:

• Record fresh produce revenue of $10.9-million for the six-month period ended June 30, 2023, versus $8.2-million for prior-year period ended June 30, 2022; this represents a 33-per-cent increase over the comparative prior-year period;
• For the three-month period ended June 30, 2023, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) equalled $2.3-million versus $1.2-million for the three-month period ended June 30, 2022;
• Renewal of a mortgage with a principal amount of $12.8-million, which matured on June 30, 2023; the renewal is for a three-year term with a fixed annual interest rate of 5.75 per cent;
• Amendment to the company's credit facility with RBC, which improved liquidity; the amendment included an increase to the company's operating lines from $6.6-million to $7.3-million, the ability to draw a further $800,000 on a revolver facility (at prime plus 1 per cent) and the reduction of the company's annual fixed coverage ratio from 1.25 to 1 to 1.10 to 1;
• Improvement to the company's working capital ratio deficit, which stood at $22.9-million as at Dec. 31, 2022, and is, as at June 30, 2023, $8.4-million;
• Renewal of the lease agreement for 15 acres of the company's organic greenhouse to its distribution partner Mastronardi Produce Ltd. for a 3.5-year term to Dec. 31, 2026.

"The impact of the strategic mini-pepper acquisition the company made last year on June 30, 2022, is being translated positively onto the balance sheet. Optimal growing conditions and the successful execution by our operations team of our harvesting activities are all key factors leading to the company's successful second quarter results. We continue to diversify our product offering and now turn our focus to work closely with our distribution partner in determining asset allocation to optimize our return to shareholders for the years ahead. Our operation and finance teams continue to be diligent on managing input costs, as well as budgeting and tracking optimal labour expenses. Congratulations to the men and women and all who help manage the day-to-day operations of Green Rise. It is due to their efforts that we continue to proudly provide quality, fresh, Ontario-grown produce to our distribution partner," said Vincent Narang, the company's chief executive officer.

About Green Rise Foods Inc.

Green Rise is a best-in-class controlled-environment agriculture grower of fresh produce. The company wholly owns 72 acres of greenhouse ranges and an additional 15-acre organic range currently leased to Mastronardi Produce. The company takes pride in providing high-quality, consistent and reliable product to meet the growing consumer demand for locally grown fresh product. The company is proud to be an environmentally sustainable investment, delivering locally grown, bee-pollinated fresh produce.

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