Mr. Mitchell Scott reports

THE VERY GOOD FOOD COMPANY ANNOUNCES UPSIZE OF PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING

The Very Good Food Company Inc. has amended its agreement with Canaccord Genuity Corp. to increase the size of the previously announced bought deal offering from $5.98-million to $8,521,500, including the exercise of the overallotment option.

Pursuant to the revised offering terms, Canaccord, as lead underwriter and sole bookrunner, has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 5.7 million units at a price of $1.30 per unit for aggregate gross proceeds to the company of $7.41-million.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of 18 months following the closing of the offering at an exercise price of $2 per share, subject to adjustment in certain events.

The company has agreed to grant the underwriter an overallotment option to purchase up to an additional 855,000 units at the issue price, exercisable, in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the offering, to cover overallotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional $1,111,500 in gross proceeds will be raised pursuant to the offering, and the aggregate gross proceeds of the offering will be $8,521,500.

The company intends to use the proceeds from the offering: to pursue an expansion into the United States; for continued investment in its product portfolio through research and development, and potential accretive acquisitions within the plant-based sector; and for general corporate purposes. The offering is expected to close on or about Aug. 12, 2020, and is subject to certain closing conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.

The units will be offered: by way of a short form prospectus to be filed in British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia; in certain offshore jurisdictions (provided that placement in such offshore jurisdictions does not give rise to the filing of a prospectus or registration statement or to any continuous disclosure obligations); and in the United States, on a private placement basis, pursuant to applicable exemptions under the United States Securities Act of 1933, as amended. The units may be sold in such other jurisdictions as the company and the underwriter may agree.

About The Very Good Food Company Inc.

Very Good Food is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives.

We seek Safe Harbor.