An anonymous director reports

AEGIS BRANDS ANNOUNCES CONVERSION OF 11% CONVERTIBLE DEBENTURES DUE NOVEMBER 17, 2027

Further to the press release dated Dec. 23, 2022, effective Jan. 23, 2023, the entire outstanding principal amount of the company's 11.0 per cent convertible unsecured subordinated debentures due Nov. 17, 2027, in the amount of $25,045,000, has been converted into common shares of the company at a conversion price of 48.5 cents per common share in accordance with the terms and conditions of the debentures. This forced conversion will expand Aegis Brands' shareholder base, will strengthen Aegis Brands' balance sheet and will better position the company for further growth.

In connection with the forced conversion, the company has issued an aggregate of 51,639,175 common shares, which will remain subject to a statutory hold period expiring Jan. 30, 2023.

The company has paid out all accrued and unpaid interest in cash, from and including Dec. 31, 2022, being the most recent interest payment date, to, but not including, the conversion date (less applicable withholding taxes, as applicable), being $6.63 per $1,000 principal amount of the debentures.

About Aegis Brands Inc.

Aegis Brands currently owns and operates Bridgehead Coffee and St. Louis Bar and Grill. The company's vision is to build a portfolio of amazing brands that can grow and flourish with access to Aegis Brands' resources and expertise. The company is committed to letting each brand operate independently while providing shared expertise to help them thrive.