Mr. Steven Pelton reports

ST. LOUIS BAR & GRILL EXPANDS WITH THREE NEW LOCATIONS ACROSS THE GTA

Aegis Brands Inc. has opened three new St. Louis Bar & Grill locations in the Greater Toronto Area. St. Louis has opened four locations this year, bringing its total restaurant count to 82. The three-newest stores are part of the company's second-generation restaurant strategy. This strategy focuses on securing locations with lower build costs, resulting in more attractive returns on the franchisee's investments.

The new second-generation locations are:

• Promenade Mall, Thornhill (opened September, 2024): This location introduces a twist on the dining experience. Guests can enjoy state-of-the-art golf simulators, marking a first-of-its-kind offering for the St. Louis brand.
• Yonge & St. Clair, Toronto (opened November, 2024): Situated at one of Toronto's busiest intersections, this prime location captures the vibrancy of midtown with a thriving after-work and dinner business.
• Walker's Line, Burlington (opened November, 2024): The newest St. Louis Bar & Grill is the brand's second location in Burlington and is ideally situated in a neighbourhood with both a residential and commercial audience.

Second-generation restaurant strategy

"In our continuous efforts to provide superior return on investment, St. Louis has adopted a second-generation restaurant strategy," said Steven Pelton, president and chief executive officer of Aegis Brands. "Converting existing restaurants to St. Louis allows our franchisees to open much more quickly and with much less capital. This strategy creates a much better return on investment for our franchisees. This also allows for the opening of more restaurants in the near future."

Mr. Pelton added: "Additionally, these new stores opened with our new menu, which is designed to appeal to a broader audience. Wings are and have always been our hero product. However, the menu in these new stores provides expanded options for everyone."

The early results from the three new St. Louis Bar & Grill locations have been positive, with increasingly strong traffic and a different sales mix compared with the existing stores in the chain. These results suggest the top-line growth is not only a result of the location but also the new, more broadly appealing menu offerings. The new menu will launch in the rest of the St. Louis restaurants in the spring of 2025.

About Aegis Brands Inc.

Aegis Brands currently owns and operates St. Louis Bar & 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.