Freshlocal Provides Update on its Capital Program

VANCOUVER, BC - Freshlocal Solutions Inc. is pleased to provide an update on the Company's efforts to strengthen its access to the liquidity necessary to grow its business.

Potential Sale of Non-Core Assets – As disclosed in the Company's Management's Discussion & Analysis for the three months and nine months ended July 3, 2021 and June 27, 2020 ("MD&A"), the Company continues to explore alternative sources of funding, including the potential sale of material non-core assets of its business as a source of growth capital. Freshlocal has engaged Fort Capital Partners as an advisor to lead the examination of the potential sale of such assets and other debt financing options. The Company has not established a definitive timeline to complete this potential sale of material non-core assets and there can be no assurance this will result in any transaction. The Company does not expect to make additional public comment regarding this matter until such disclosure is appropriate in accordance with applicable securities laws.

Silicon Valley Bank Debt Facility – The Company continues to make significant progress on finalizing forbearance terms with Silicon Valley Bank ("SVB") regarding the breach of certain financial covenants in relation to its debt facility with SVB as disclosed in the MD&A. SVB has not issued a notice of default in connection with such breaches, and the Company will provide an update once a definitive agreement with SVB has been executed. There can be no assurance that such an agreement will be reached, and further updates in this regard will be disclosed when appropriate in accordance with applicable securities laws.

DTC Eligibility in the United States – Freshlocal's common shares are now eligible for electronic clearing and settlement through the Depository Trust Company ("DTC") in the United States on the OTC under the symbol "FLOCF". DTC eligibility is expected to simplify the process of trading and enhance liquidity of Freshlocal's shares in the United States, with an accelerated settlement period and reduced costs for US-based investors and brokers.