Eshbal names Nir Peles director, achieves revenue milestones

Toronto, Ontario--(Newsfile Corp. - May 29, 2026) - Eshbal Functional Food Inc . (TSXV: ESBL) ("Eshbal" or the "Company"), a developer and manufacturer of gluten-free and better-for-you food and dietary supplement products, today announced the appointment of Mr. Nir Peles to its Board of Directors, the achievement of certain performance milestones associated with the Company's reverse takeover transaction completed in April 2025, and the completion of the Company's continuance into the Province of Ontario. Eshbal Functional Food Inc . To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12370/299364_2d5326e194220b3d_001full.jpg Nir Peles - New Director Eshbal today announced that the Company's Board of Directors has appointed Mr. Nir Peles to serve as a director of Eshbal.

Yuval Levy, Chairman, on behalf of the Company's Board of Directors, commented: "I am delighted to welcome Nir, whom I know for many years, to Eshbal's Board of Directors. With deep industry expertise and a proven strength in strategic planning and capital markets, he brings valuable insights and leadership as we continue to guide Eshbal's long-term strategy. We look forward to Nir's contributions in the years ahead." Mr. Peles is an entrepreneur, equity investor and founder of BioMeat FoodTech (TLV: BIMT), a public foodtech investment platform focused on alternative proteins and next-generation food innovation.

Mr. Peles has extensive experience in business development, strategic growth initiatives and M&A transactions, with a particular focus on functional foods, gluten-free products, personalized nutrition and better-for-you consumer brands. Mr. Peles is a CPA and studied for his MBA at Tel Aviv University, holds a Master of Laws degree from Bar Ilan University and a Master's degree in Sea Resource Management. With the addition of Mr. Peles to the Company, Eshbal Company continues evaluating new product categories and technology and AI-assisted development initiatives focused on emerging health and wellness trends, including gluten-free and GLP-1 friendly nutritional solutions.

Management believes these initiatives may support future product innovation and expansion into additional better-for-you consumer segments. Annualized Revenue Milestones Achieved On April 28, 2026, the Board confirmed the achievement of two performance milestones associated with the reverse takeover transaction completed in April 2025 (the "RTO"), specifically the achievement of: (i) Annualized Gross Revenues of at least CAD$17,000,000 with Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") of at least 3% of Gross Revenues; and (ii) Annualized Gross Revenues of at least CAD$18,500,000 with EBITDA of at least 3.8% of Gross Revenues. This achievement triggered the issuance of 11,200,000 common shares in the capital of Eshbal ("Common Shares") to certain original shareholders of Eshbal Functional Food (Agricultural Cooperative) Ltd. ("Eshbal Israel").

Finance Linked Share Issuances In connection with the RTO, the original shareholders of Eshbal Israel were issued compensation securities convertible, for no consideration, into Common Shares if certain conditions were met. On April 28, 2026, the Board confirmed that the conditions were met triggering the issuance of 3,241,238 Common Shares to certain original shareholders of Eshbal Israel. Ontario Continuance Eshbal also announces that, effective April 14, 2026, the Company has been continued from British Columbia (Business Corporations Act (British Columbia)) to Ontario (Business Corporations Act (Ontario)) (the "Continuance").

The Company adopted new articles and by-laws as part of the Continuance, which replaced the prior articles and by-laws of the Company. The Continuance and the new articles and by-laws of the Company were each approved by shareholders at the Company's special meeting of shareholders held on April 10, 2026. Copies of the certificate of continuance and the new articles and by-laws of the Company will be available on SEDAR+ ( www.sedarplus.ca ) under the Company's issuer profile.

About Eshbal Functional Food Inc. Eshbal Functional Food Inc. (TSXV: ESBL) is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, foodservice, and online channels in North America. Since listing on the TSX Venture Exchange in 2025, Eshbal has been executing its North American growth strategy through a combination of organic expansion and strategic acquisitions. The Company's operations include gluten-free, better-for-you, and functional food products sold across retail, foodservice, and online channels.

During this period, the Company completed the acquisition of Gluten Free Nation, acquired a majority interest in Dare to Be Different Foods, launched localized North American production in partnership with Queen Street Bakery, and strengthened its commercial infrastructure in the region. Eshbal's strategy is focused on integrating complementary better-for-you brands into a centralized operating platform designed to expand distribution, support operational efficiencies, and create long-term growth opportunities. (Eshbal maintains active digital engagement and investor communications through its corporate website and official social media channels: Website   LinkedIn   Facebook     Disclaimers: Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release. This press release contains "forward-looking statements" within the meaning of the securities laws.

Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith.

However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca.

Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements.

References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere.

These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299364 TMX Newsfile May 29, 2026 - 6:06 AM PDT News by QuoteMedia www.quotemedia.com