Eat Well Investment Group Inc. announce it has signed non-binding term sheets with the Business Development Bank of Canada and a private lender to refinance the Company's existing revolving credit facilities of up to $40,000,000 with its senior lender . The Refinancing Transaction will significantly reduce the Company's interest payments while amortizing repayment by up to 20 years. BDC will provide a secured loan of $22,500,000 at a fixed rate of 5.65% per annum, payable monthly and amortizing over a 20-year period, which will be used to repay a portion of the Existing Credit Facilities; BDC will provide a secured loan of $2,000,000 at a fixed rate of 8.8% per annum, payable monthly and amortizing over a 7-year period, which will be used to repay a portion of the Existing Credit Facilities; The Private Lender will convert $8,000,000 of the Existing Credit Facilities into a secured convertible loan (the “Convertible Loan”), convertible into common shares of the Company (“Common Shares”) at a price to be established in the context of the market price of the Common Shares on the date the Convertible Loan is issued, and accruing interest at a rate of 15% per annum, payable monthly, and repayable 18 months after closing; In connection with the Convertible Loan, the Company will issue warrants to the Private Lender to purchase such number of Common Shares as is equal to 50% of the number of Common Shares which may be issued upon conversion of the Convertible Loan at a price to be established in the context of the market price of the Common Shares on the date the warrants are issued; and The Company shall be required to repay all or a portion of the Convertible Loan, as applicable, upon the occurrence of certain future prepayment events, including but not limited to a sale of any assets of the Company, public or private offerings of securities of the Company, exercise of existing convertible securities of the Company and any merger, sale or similar transaction involving the Company; and The remainder of the Existing Credit Facilities (approximately $7.5 million) will remain outstanding on substantially the same terms as the Existing Credit Facilities, provided that the maturity date thereof will be concurrent with the Convertible Loan.

The Company is also pleased to announce that it has extended the maturity date of its Existing Credit Facilities for an additional month, to January 31, 2023, and has an option to extend such revised maturity date, subject to the approval by its current senior lenders, for an additional month, to February 28, 2023. Closing of the Refinancing Transaction is expected to occur in January 2023, subject to the satisfaction of a number of customary conditions precedent. However, there is no guarantee that closing will occur on such timeline, if at all.