Eat Well Investment Group Inc. announced that it has successfully closed its debt refinancing efforts with the Business Development Bank of Canada and a private lender. The refinancing transaction includes: A $22.5 million secured loan from BDC at a fixed rate of 5.65% per annum, payable monthly and amortizing over a 20-year period (including a three-month payment holiday), which was used to repay a portion of the Company's existing credit facilities. A $2 million secured loan from BDC at a fixed rate of 8.8% per annum, payable monthly and amortizing over a seven-year period (including a 12-month payment holiday), which was used to repay a portion of the Company's existing credit facilities.

The private lender has converted $8 million of the existing credit facilities into a secured term facility (the "Term Facility") that accrues interest at a rate of prime +7.55% per annum, payable monthly, and is repayable 12 months after closing of the refinancing. The private lender has converted the remaining $7.5 million of the existing credit facilities into a secured revolving facility (the "Revolving Facility") not to exceed $8.5 million, that accrues interest at a rate of prime plus 7.55% per annum, payable monthly, and is repayable 12 months after closing of the refinancing. The Private Lender will earn a commitment fee (the "Commitment Fee"), which will be waived if the Term Loan is repaid by August 31st, 2023, a fee of $523,000 payable by September 30th, 2023, and issue 2,500,000 Common Shares to the Private Lender (the "Bonus Shares").

The Bonus Shares are subject to a four-month hold period in accordance with applicable securities laws. Management has agreed to forfeit 2.5 million profit interest shares, to avoid added shareholder dilution in exchange for issuing common shares in the capital of the Company ("Common Shares"). For additional clarity, the revised terms of the Debt Refinancing do not include any convertible loan or the issuance of any additional warrants, as previously contemplated in the December 23, 2022.

The refinancing transaction results in several benefits for the Company, including: Reducing Eat Well's interest charges by over $2.1 million per year. Reducing interest rates from 14.25% to a blended rate of 9.55%. Reducing monthly payments by approximately $185,000, a savings of 38% for the first twelve months and then following the interest deferment will be $170,000, a savings of 35%.

Extending the maturity of the Company's outstanding credit facilities by up to 20 years. Initiating a long-term relationship with a supportive lender that can scale with future growth plans. The savings of over $2 million in annual interest will significantly contribute to improving the Company's bottom line.

Eat Well expects this reduction in interest charges and favorable refinancing terms will help the Company achieve a positive net income going forward, allowing it to allocate more resources towards innovation & investment, expansion efforts, and marketing, further strengthening its market position in the plant-based food ingredient and CPG industry.