Fresh Factory awarded US$765,000 Illinois Capital Grant
Non-dilutive Business Attraction Prime Sites grant supports expansion of the Company's Illinois manufacturing operations
DOWNERS GROVE, IL / ACCESS Newswire / August 12, 2026 / The Fresh Factory B.C. Ltd. (TSXV:FRSH)(FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, is pleased to announce that it has been awarded a capital grant of up to US$765,000 (the "Grant") under the Illinois Department of Commerce and Economic Opportunity's ("DCEO") Business Attraction Prime Sites program, in connection with the Company's approved Illinois Economic Development for a Growing Economy (EDGE) agreement, pursuant to a fully executed grant agreement (Agreement No. 26-881005).
The Grant supports the Company's ongoing expansion of its Illinois manufacturing operations, including the relocation of its production to a larger facility in Bolingbrook, Illinois and improvements to its Downers Grove operations, together with the associated capital investment and creation of new jobs in the State. The award underscores the strength of the Company's Illinois footprint and its long-term commitment to growing its manufacturing base and workforce in the region.
The Business Attraction Prime Sites program is designed to assist companies undertaking large-scale capital investment projects that commit to significant job creation for Illinois residents as they expand operations within the State. The Grant is non-dilutive and is disbursed as reimbursement of eligible capital expenditures; the Company expects to begin receiving reimbursement under the Grant in September 2026. No securities of the Company are being issued in connection with the Grant.
"This award reflects our continued investment in Illinois manufacturing and jobs as we expand our operations," said Bill Besenhofer, CEO and co-founder of The Fresh Factory. "We are grateful for the State of Illinois' support through the Prime Sites program, which helps us accelerate our growth, add capacity, and create new jobs in the communities we serve."
Credit Facility
Separately, the Company has entered into an unsecured, subordinated, short-term revolving credit facility of up to US$1.0 million (the "Facility") with New Frontier Holdings, LLC, an entity controlled by Nathan Laurell, a director of the Company, for working capital and general corporate purposes. The Facility is subordinated in right of payment to the Company's senior secured credit facility with Mitsubishi HC Capital America Inc. The Company believes the terms of the Facility are fair and commercially reasonable given that it is unsecured, subordinated and short-term in nature. No securities of the Company are being issued in connection with the Facility.
The Facility constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the lender is an entity controlled by a director of the Company. The Company is relying on exemptions from the formal valuation requirement (section 5.5(b) of MI 61-101) and the minority shareholder approval requirement (section 5.7(1)(f) of MI 61-101) applicable to a loan obtained on reasonable commercial terms that are not less advantageous to the Company than if obtained from an arm's length party and that is not convertible, directly or indirectly, into equity or voting securities of the Company. The Facility was reviewed and approved by the Company's board of directors, with the interested director having declared his interest and abstained from voting.
About The Fresh Factory B.C. Ltd.
The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture, and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefits corporation, The Fresh Factory is ESG-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole. Learn more about The Fresh Factory at www.thefreshfactory.co and find The Fresh Factory on social media at Instagram, Twitter, and LinkedIn.
Contacts
Bill Besenhofer Chief Executive Officer and Co-Founder 1-877-495-1638 info@thefreshfactory.co
Susan Xu Media and Investor Relations 1-877-495-1638 healthyinvestors@thefreshfactory.co
Forward-Looking Statements
This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements that address activities, events, or developments that the Company expects or anticipates will, or may, occur in the future, including, but not limited to, statements about the Grant, the anticipated receipt, amount and timing of proceeds under the Grant, the use of such proceeds, the Company's expansion of its Illinois operations and related job creation, the Facility, the use of proceeds from the Facility, the availability of funds under the Facility, the anticipated benefits of the financing, and statements with respect to the future business and operations of the Company. In some cases, forward-looking statements are preceded by, followed by, or include words such as "may", "will," "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "proposes", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", "anticipate" or the negative of those words or other similar or comparable words. Although the management of the Company believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting its industry, can be found in the final long-form prospectus of the Company dated November 10, 2021, and the Company's continuous disclosure record available on SEDAR+ at www.sedarplus.ca . Such cautionary statements qualify all forward-looking statements made in this news release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: The Fresh Factory B.C. Ltd.
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