Freshii Provides Business Update

TORONTO, May 29, 2020 (GLOBE NEWSWIRE) -- Freshii Inc. (“Freshii” or the “Company”) (TSX: FRII) today provided the business update required as a result of Freshii’s previously announced utilization of the temporary blanket relief granted by the Ontario Securities Commission in Ontario Instrument 51-502 Temporary Exemption from Certain Corporate Finance Requirements (and equivalent relief granted by the other provinces and territories of Canada) in respect of the filing of its interim financial report and related filings for the first quarter of 2020. The Company expects to file its interim financial report and related filings on June 26, 2020. Freshii remains focused on protecting the health of its customers and employees and on supporting its network of restaurants and franchise partners in response to the ongoing COVID-19 pandemic.

The response to the COVID-19 pandemic and government restrictions that have been imposed in a variety of the jurisdictions in which Freshii and its franchise partners operate have continued since the date of Freshii’s previous updates on March 30 and April 29, 2020.  In common with other restaurant, hospitality and entertainment-related businesses, these restrictions have resulted in many Freshii locations having temporarily paused their service to dine-in guests, revised their operating hours or paused operations altogether. These actions have resulted in a decrease to customer traffic and revenues at the affected locations that is expected to be temporary but material during the relevant periods.   

The Company expects that the number of affected locations will continue to fluctuate in response to the rapidly-changing environment, with a corresponding effect on customer traffic volumes and revenue at these locations. Factors contributing to this fluctuation include: the imposition (and in some jurisdictions, relaxation) of government restrictions; Freshii-led initiatives to assist its franchise partners in responding to the challenges created by the current environment (including sales and traffic driving initiatives as well as a temporary deferral option of 25% of royalty fees from March 30, 2020 until May 24, 2020, following a full Freshii fee deferral from March 9 – March 29, 2020, with all deferred amounts to be collected at later date as determined by the Company);  the nature, extent and duration of the government relief that is provided to small businesses (including in relation to rent relief and wage subsidies, which, along with the Freshii-led sales and traffic driving initiatives, have resulted in many franchise partners restarting full or partial operations, as applicable); and to other conditions and other factors specific to the various local markets in which Freshii and its franchise partners operate.