Mr. Bill Besenhofer reports

THE FRESH FACTORY SECURES US$4 MILLION CREDIT FACILITY

The Fresh Factory B.C. Ltd. has secured a three-year revolving asset-based lending facility in the principal amount of $4-million (U.S.) with Mitsubishi HC Capital America Inc. (the lender), an arm's-length party to the company.

Under the terms of the facility, up to $4-million (U.S.) (approximately $5.5-million) will be made available to the company's U.S. operating subsidiaries, secured against the company's unencumbered assets. Funds drawn on the facility will bear interest at prime plus 1.00 per cent per annum, payable monthly. Proceeds are expected to be used for working capital and general corporate purposes. The company expects that future revenue generated through operations will be sufficient to service and fully repay the facility on or before its maturity date.

"This facility provides us with additional financial flexibility to accelerate our growth plans," said Bill Besenhofer, chief executive officer and co-founder of The Fresh Factory. "We're excited to build on our momentum, continue investing in our operations and expand our reach as we deliver fresh, clean-label and better-for-you products."

A 0.45-per-cent-per-annum fee, payable monthly, shall also be applied to any unused portion of the facility, and the company will be obligated to pay an exit fee equal to 2.00 per cent of the facility if the facility is paid off within the first year of initial financing, subject to reduction in subsequent years. As additional consideration for the provision of the services provided by lender, the company shall be required to pay a $60,000 fee upon closing of the facility and $15,000 at each annual anniversary date thereafter.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefits corporation, The Fresh Factory is ESG (environmental, social and governance) focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole.

We seek Safe Harbor.