Mr. J.R. Kingsley Ward reports

SIMPLY BETTER BRANDS CORP. PROVIDES CORPORATE UPDATE, ANNOUNCES SUSPENSION OF OPERATIONS OF PUREKANA SUBSIDIARY

Operations of Simply Better Brands Corp.'s 50.1-per-cent-owned subsidiary, PureKana LLC, are being suspended. PureKana plans to commence bankruptcy proceedings under Chapter 7 of the Bankruptcy Code of the United States as soon as practicable.

The decision to commence the proceedings follows a comprehensive review over the last seven months by a special committee of the company's board of directors and the company's board of directors of Simply Better Brands' investment in PureKana. The strategic review included an evaluation of PureKana's performance, customer acquisition strategy, long-term growth potential as well as a search for a buyer.

"The special committee and our board of directors undertook a comprehensive review of PureKana's business and concluded that the business model, given the significant costs associated with acquiring and retaining customers, does not fit with SBBC's strategy for profitable growth," said J.R. Kingsley Ward, interim chief executive officer of Simply Better Brands. "The decision of previous management to continue investing in high-cost affiliate marketing programs in the CBD [cannabidiol] market did not meet our objectives for growth and profitability. As a result, SBBC can no longer support PureKana's operations and continued investment in PureKana is not considered to be in the best interests of SBBC and our shareholders."

In conjunction with today's announcement, Simply Better Brands released preliminary full-year 2023 financial results, reporting revenues in the range of $80-million to $85-million and gross profit of approximately 60 per cent in 2023. While PureKana accounted for approximately half of Simply Better Brands' consolidated revenue in 2023, it also represented the majority of the company's operating losses during such period. Additionally, Simply Better Brands' consolidated debt position is expected to benefit from the elimination of approximately $10-million of debt owing by PureKana from the company's financials as a result of the proceedings.

"Looking ahead, we are excited about the opportunity to sharpen our focus on investing in the growth and continued momentum of our Trubar plant-based protein bar," said Mr. Ward. "Based on the brand's strong performance in 2023, we expect Trubar to generate revenues of $40-million to $45-million and gross profit of approximately 45 per cent in 2024 with the potential to generate significantly greater revenues over the next two to three years. The company has adequate resources to execute the profitable growth strategy going forward."

All figures herein are in U.S. dollars.

Simply Better Brands was advised in the strategic review process by certain strategic advisers and Canadian legal counsel, Norton Rose Fulbright Canada LLP.

About Simply Better Brands Corp.

Simply Better Brands leads an international omnichannel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories. The company's mission is focused on leading innovation for the informed millennial and Generation Z generations in the rapidly growing plant-based wellness, natural and clean ingredient space. The company continues to focus on expansion into high-growth consumer product categories, including plant-based food, clean-ingredient skin care and plant-based wellness.

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