• Eat Well closed the acquisition of Sapientia on July 31, 2021
• The acquisition was for a consideration of 3,741,969 common shares, and a cash payment of US$6.51 million in installments payable up to July 8, 2022
• Eat Well just paid its last installment of $840,000, marking a significant milestone for the company
• It now looks to continue building on Sapientia’s momentum by accelerating production and collaborating with other portfolio companies to meet existing and new demand, increase distribution and product offerings

In a study conducted by Gartner in 2019 on 473 Chief Executive Officers (“CEOs”) and senior business executives, 53% of the participants cited the growth of their businesses as their key priority going forward. They further noted that one of the fastest ways to grow their businesses was to enter new markets and reach previously inaccessible customers. Mergers and acquisitions (“M&A”), they said, would help achieve this objective while also exposing their businesses to more benefits associated with the move (https://ibn.fm/oh8k1).

Consequently, M&A would define 2020 and 2021. In a 2022 mid-year update, PWC noted that at the start of 2022, dealmakers were “riding high from the best year on record for global M&A.” According to the report, 2021 saw over 60,000 publicly disclosed deals, valued at over US$5tn, a first in the history of M&As. Among the disclosed deals was Eat Well Investment Group’s (CSE: EWG) (OTC: EWGFF) acquisition of Sapientia Technology, LLC. (https://ibn.fm/aCXws).

Closed on July 31, 2021, this acquisition was Eat Well’s move to disrupt the multibillion snack food market, gain access to new markets and reach new customers. At the time of the acquisition, Eat Well projected that Sapientia would generate approximately $1,133,000 in revenue for the 2021 financial year. Sapientia, Belle Pulses, and Amara organic foods would go on to post combined revenues of C$57,936,019 in 2021 (https://ibn.fm/rgzky).

The consideration of the acquisition of Sapientia involved the issuance of 3,741,969 common shares and a cash payment of US$6.52 million to former Sapientia shareholders. On July 31, 2021, Eat Well paid US$1 million, with the remaining sum payable in installments up to July 8, 2022. Eat Well just finalized the payment of $840,000, the last installment fulfilling all outstanding payment obligations. According to the company’s management, completing this milestone allows Sapientia to further collaborate with other Eat Well portfolio companies to increase its margins and expand its product lines and flavors (https://ibn.fm/rXL0M).

Since its acquisition, Sapientia has remained committed to becoming an industry leader in the snack market. It has created and filed four foundational patents revolving around the “Protein Twist” and crispy puff style snack, capitalizing on the initial success of the protein curls. In addition, the company has also launched a pilot program in Federated Co-op western Canada, evaluated multiple-tiered manufacturing solutions to scale the core product, and refined the business development pipeline for private labeling.

Sapientia continues to develop an e-commerce pilot program via Amazon US for the second half of 2022 and plans to increase its store count in the third quarter of this fiscal year. Its management believes that maintaining the current momentum will allow the company to meet new demand while ultimately creating value for its shareholders.

“Our objective is to continue building off our momentum by accelerating production to meet existing and new demand, and increase our distribution and product offerings,” noted Dr. Gino Bortone, the Founder and CEO of Sapientia.

“We look forward to more innovation between Sapientia and Eat Well’s other portfolio investments at Belle Pulses and Amara,” noted Marc Aneed, Eat Well’s President and CEO.

So far, Sapientia’s acquisition is paying off for Eat Well. The parent company has not only achieved growth through this acquisition but also stands to benefit from improved brand equity, a growing product list, and a broader market reach than ever before. This is proving beneficial to the company and its shareholders, even as Eat Well looks to push for its market expansion plans even more aggressively going forward.

For more information, visit the company’s website at www.EatWellGroup.com.

NOTE TO INVESTORS: The latest news and updates relating to EWGFF are available in the company’s newsroom at https://ibn.fm/EWGFF

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