The Fresh Factory Reports Q1 2023 Results with Total Billed Revenue of $5.5M

• The Company reported quarterly billed revenue of $5.5M ($7.5M CAD), compared to $3.9M ($5.3M CAD) in Q1 2022, representing a year-over-year increase of 41.6%.
• The Company reported total revenue of $5.4M ($7.4M CAD), compared to $3.7M ($5.1M CAD) in Q1 2022, representing a year-over-year increase of 45.6%.
• The Company completed two non-brokered private placements, totaling 32,917 Proportionate Voting Shares at a price of $60.0 per Proportionate Voting Share and 41,666 Subordinate Voting Shares at a price of $0.60 per Subordinate Voting Share for gross proceeds of $2.0M ($2.7M CAD).
• The Company successfully executed a price increase in March 2023 to partially offset inflationary pressures on the business.

CAROL STREAM, IL / ACCESSWIRE / May 31, 2023 / The Fresh Factory B.C. Ltd. (CSE:FRSH)(FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, reports financial results for the first quarter ending March 31, 2023 ("Q1 2023").

Bill Besenhofer, Chief Executive Officer and co-founder of The Fresh Factory commented: "As we reflect on the remarkable progress we've made during the last few quarters, I am pleased to announce that our billed revenue for the first quarter of the year has soared to US$5.5M, marking YoY growth of 41.6%. This achievement can be attributed to the successful onboarding of new customers in late 2022 and the substantial organic growth of our existing customer base, contributing 24% to the overall increase. Additionally, we take great pride in our commitment to excellence, as we have once again passed our annual SQF audit for the seventh consecutive year. While we anticipate ongoing inflationary pressure in the early part of this year, we are confident in our ability to navigate these challenges. With robust infrastructure and a dedicated team in place, we are well-positioned to sustainably accelerate our growth and solidify The Fresh Factory's position as a frontrunner in the fresh, clean-label food and beverage industry in the United States."

Financial and Operational Highlights: Q1 2023 vs Q1 2022

• Total billed revenue of $5.5M ($7.5M CAD) in Q1 2023 vs. $3.9M ($5.3M CAD) for Q1 2022, mainly driven by new customers added in late 2022 and incremental growth of existing business
• Adjusted EBITDA of $(0.4)M ($(0.5)M CAD) in Q1 2023 vs. $(0.4)M ($(0.5)M CAD) in Q1 2022
• Adjusted gross margins of $1.5M ($2.1M CAD) in Q1 2023 vs. $1.0M ($1.4M CAD) in Q1 2022
• Net proceeds from financing activities of $1.7M ($2.3M CAD) in Q1 2023 vs. $0.2M ($0.3M CAD) cash used for Q1 2022
• As of April 28, 2023, the Company has purchased 167,000 of the eligible 539,186 common shares at a cost of $0.1M ($0.1 CAD), representing a weighted average price of $0.50 ($0.68 CAD) per share under its Normal Course Issuer Bid ("NCIB").

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