Mr. Sean Black reports

HAPPY BELLY FOOD GROUP ANNOUNCES THE SALE OF HOLY CRAP FOODS AS IT FOCUSES ON ACCELERATING ITS QSR BUSINESSES

Happy Belly Food Group Inc. has entered into a binding letter of intent to sell Holy Crap Foods, its cereal and oatmeal brand, for $1-million in cash plus working capital adjustments.

"This transaction is a strategic step forward in the company's plan to focus on its core quick-service restaurant (QSR) businesses, which continues to experience strong, predictable, high-margin growth across Canada and soon to be operational in the United States," said Sean Black, chief executive officer of Happy Belly. "Holy Crap Foods played a role in Happy Belly's journey and now we are in a position to monetize the asset and redeploy the cash into the QSR portfolio. The sale of Holy Crap Foods provides Happy Belly with a non-dilutive $1-million of cash, which the company intends to redeploy into our QSR division. Closing anticipated in early Q1. This capital will accelerate the development of Happy Belly's growing pipeline of restaurant locations where the company has consistently demonstrated its ability to build, scale and franchise high-performing brands such as Rosie's Burgers, Heal Wellness, Via Cibo, iQ Food Co. and Yolks Breakfast.

"We will continue to invest with a focus on ROIC [return on invested capital], and, when the opportunity arises to monetize an asset at an attractive valuation, we will do so. Moving forward we will focus on restaurants and heavily concentrated in the QSR segment. Unlocking this value and redeploying the capital just made good business sense at this time.

"We are just getting started," said Mr. Black.

Franchising

For franchising inquiries, please see Happy Belly's website or contact the company at hello@happybellyfg.com.

About Happy Belly Food Group Inc.

Happy Belly Food Group is a leader in acquiring and scaling emerging food brands across Canada.

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