Ms. Suzette Ramcharan reports

PLANTIFY FOODS PROVIDES CORPORATE UPDATE

Plantify Foods Inc. has provided an update on its activities and future plans for market expansion, along with an update on its operations.

"During 2023, the company built a solid foundation, including commissioning of a new facility, which provides the opportunity for easy expansion as we continue to grow. As well, our R&D [research and development] team worked tirelessly to expand our product line from one category (veggie balls and nuggets) to 38 different items across four main product categories," said Suzette Ramcharan, chief executive officer of Plantify Foods.

"We have had success identifying and securing new customers and look to increase our efforts as we make our way into 2024. We will look to increase our product offering to existing customers and secure new customers, especially within emerging markets such as Europe and the United States. More exciting for us as a company will be to build the Plantify Foods brand in the United States, a huge market with a lot of demand and potential."

A unique clean-label food company

Plantify Foods is a unique clean-label food company with a wide variety of products that offer stand-alone meals, appetizers, snacks, hand-held food options and more. With four product categories and a total of 38 different products, this established product line can meet consumer demand for convenient, healthy and great-tasting clean-label foods that also happen to be plant based. In addition, consumers can feel confident in the quality and diet-forward thinking of these products that are also proudly free from most common allergens.

Clean-label food products can be described as food that is as close to its natural state as possible. This means using whole, natural ingredients with minimal processing, no chemical preservatives, and no additives such as sugars or flavour enhancers. Clean label is not about consumers eating less packaged foods but rather a desire to have these same packaged foods made with more wholesome ingredients that are closer to their natural state. Through Plantify Foods' proprietary process and know-how, the company is able to create clean-label food products boasting a similar, if not longer, shelf life to non-clean-label alternatives.

Product highlights and core values

Plantify Foods aims to foster a more sustainable and healthier world through delicious and nutritious foods. The company strongly believes that everyone should have access to food that is not only good for them but also good for the planet. Plantify Foods has a vision to redesign what healthy food can be by setting the standard for clean label.

Free from common allergens:

• Dairy-free;
• Gluten-free;
• Soy-free;
• Nut-free.

Clean-label food products:

• Whole, natural ingredients with minimal processing;
• No chemical preservatives;
• No added sugars or flavour enhancers;
• Non-GMO (genetically modified organism).

All products meet halal and kosher standards, satisfying cultural and religious diets across the world. The company is also able to produce organic food products and currently does so for certain customers.

Customers and sales landscape

The current sales landscape includes branded products, white-label and professional food service within the company's local market, as well as white-label and professional food service sales to Europe and initial sales into the United States.

The company has taken a prudent approach to penetrating new markets, focusing on white-label and food service sales channels, resulting in consistent increases in sales and revenues with minimal costs associated with branding and packaging (professional markets buy larger packages with no branding).

The company has continuously focused on the development of new products to further enhance its offering and meet demands from its customers. Within the last year alone, Plantify Foods has grown from one product category (veggie nuggets and balls), adding three additional product categories, dips and spreads (which also include recent additions of pickled items), a popular soup line and stews (including a versatile vegan Bolognese). The new product lines have proved successful, resulting in increased sales to existing customers, and has attracted new customers.

Third quarter financial highlights

For the nine-month period ended Sept. 30, 2023 (YTD 2023), the company saw a 56-per-cent increase in sales of $441,000 (U.S.) when compared with the same period last year (YTD 2022), as a result of new sales in Europe and North America. The company realized a net loss of $2,045,000 (U.S.) for YTD 2023, an improvement of 47 per cent over the same period in 2022 as a result of the increased sales this year. To date, the company has not generated any material revenues and expects to continue to finance itself through raising adequate funds in the foreseeable future.

The selected financial information presented within this press release has been taken from the company's management discussion and analysis dated Nov. 27, 2023, and which should be read in conjunction with the unaudited financial statements with the same date. Both documents are available for download from the company's profile on SEDAR+.

As at Sept. 30, 2023, the company had cash on hand of $1,462,000 (U.S.).

Operational update

With operations based in Israel, the business and operations are directly affected by economic, political, geopolitical and military conditions affecting Israel. A number of armed conflicts have occurred between Israel and its neighbouring countries and other hostile non-state actors over the years and the current military conflict that commenced on Oct. 7, 2023.

To date, the operations have had limited impact; however, this is a continuing situation. The company has seen sporadic delays and limited price fluctuations from suppliers, but this has not resulted in any major delays on timing of shipments to customers. The company will provide updates should anything significant or material arise.

What to look out for

Emerging markets: The company will be focused on expanding its footprint into emerging markets such as Europe and North America, focusing on upselling with established customers, as well as seeking out new customers within the two regions. Given the size and the demand for clean-label products in the United States, the company will focus its outreach within the United States. starting in one geographic region and expanding from there:

• Increase sales efforts in Europe within existing markets;
• Identify and target new market opportunities with high demand for clean-label and plant-based food products such as Germany and the Netherlands;
• North American entry of the Plantify Foods brand in 2024;
• Expansion of current product offering to existing customer base.

New website: The company is currently working on updating its website to reflect the growth and new expanded product line while providing pertinent information for investors and customers alike. The new website will also include a knowledge centre, which aims to provide valuable insight and information on clean-label and healthy eating in the form of vetted information, articles and blogs.

Over time, the goal will be to expand the website to offer recipes and advice on ways to prepare Plantify Foods' products, allowing customers full support in their quest to feed their families better food.

About Plantify Foods Inc.

Plantify Foods is committed to providing consumers with nutritious, Clean Label food options while pioneering innovation in the food and beverage industry. The company has a simple mission: to ensure that everyone has access to high-quality food alternatives that are clean and healthy, are nutritious and tasty, use whole natural ingredients, and are easy to prepare.

Plantify Foods, through its wholly owned Israeli subsidiary, currently sells its diverse range of products in Israel and is actively expanding its footprint across Europe and North America. With its new manufacturing facility, the company can increase production and continue to create new clean-label food products to meet the growing demand of health-conscious consumers from all walks of life.

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