GreenSpace Brands Inc. announced aggressive plans to reduce ongoing operating costs through a restructuring program called Project FIT. This initiative, which is expected to deliver annualized cost savings in excess of $2.0 million starting in the second-half of the fiscal year ending March 31, 2022 was approved by the Board of Directors as part of the new Strategic Plan for the business. Project FIT will create a leaner, simplified and more focused business, significantly reducing fixed and variable costs with the goal of enhancing shareholder value. Project FIT is comprised of the following initiatives: Exit self-manufacturing at Central Roast: Beginning July 2021 Central Roast's nut and snack mix products will be manufactured by a third-party provider with scale advantages and existing relationships with many of Central Roast's existing suppliers, which are expected to drive enhanced synergy savings for the business while maintaining commitment to product quality. By the end of the current fiscal quarter, the Company will transition equipment and technical expertise and exit its current production and warehouse space. Portfolio Simplification: The Company will reduce active stock keeping units across the business by approximately 60% this year. The new simplified portfolio has strong customer demand and is expected to improve gross margins for the business. Reducing portfolio complexity will result in scale advantages with supplier base, lower inventory holding costs, reduce waste and improve retail visibility and retail replenishment of best selling skus across customer channels. Supply Chain Reinvention: The Company has engaged a leading global integrated supply chain advisory and services organization, for a multi-year program expected to deliver significant ongoing cost savings as well as improved operational effectiveness and payment terms. Zero-Based Budgeting: The Company has embraced a more robust zero-based budgeting approach to actively scrutinize all discretionary expenses and other costs to the business. Organization Optimization: The Company's organization structure will be optimized and spans of control will increase. It is important to note that the Company will ensure continuity for strategic customer-facing relationships, designed to ensure ongoing customer support to growth agenda over time. Stronger Performance Management: The Company has significantly strengthened its performance management orientation, better aligning accountabilities and performance rewards with value creation and with investors' interests over the long-term. Head Office Relocation: The Company will be relocating its head office at the end of its current lease in October 2021. The new location will be announced in September 2021 and better fit the lean organization model and cost-conscious culture being embraced by more focused team. The Company expects to incur the majority of the program's one-time charges of approximately $0.6 million in the first-half of its current fiscal year.