Oragin Foods Provides Business Update

Rhea-AI Summary

Oragin Foods Inc. has provided an update on its business initiatives, assuring shareholders of ongoing progress despite global events. The company is onboarding experienced personnel to enhance US operations and expand its plant-based product portfolio. With a cash balance exceeding $2 million, Oragin plans to grow its Consumer Packaged Goods (CPG) division and retail presence through Organic Garage. Notably, sales for the Future of Cheese product line increased by 230% quarter-over-quarter, signaling strong market interest and potential expansion in the US market.

Positive

• Onboarding of skilled individuals to enhance US operations and explore acquisitions.
• Cash balance of over $2 million to support short and long-term goals.
• Future of Cheese sales increased by approximately 230% quarter-over-quarter.

Negative

• None.

With respect to the global events taking place, the company is pleased to provide a general update to assure its shareholders that all areas of the business and its subsidiaries’ operations are proceeding as planned, and will provide further news releases as material information and events occur.

TORONTO--(BUSINESS WIRE)-- Oragin Foods Inc. (“ORAGIN” or the “Company”) (TSXV: OG, OTCQX: OGGFF, FRA: 9CW) is pleased to provide a business update on key initiatives underway for the Company and its subsidiaries.

• The Company is in advanced stages related to the onboarding of a highly reputable and skilled individual(s) with significant food and beverage industry experience working with some of the most well-known Consumer Packaged Goods (“CPG”) brands in North America to advance the US operations for ORAGIN, including its Future of Cheese brand, as well as identifying possible target acquisitions to expand the portfolio of plant-based brands under the Company’s CPG division.
• Plans are underway to allocate resources, capital, and additional expertise to rapidly grow the Company’s CPG business with a significant focus on the US plant-based and retail markets, as well as the continued planned expansion of the Company’s retailer, Organic Garage.
• The Company plans to provide updates on the above in the coming weeks and months.
• The Company’s healthy cash balance of over $2 million will further its short-term business goals and lay the foundation for its long-term business goals.

ORGANIC GARAGE

• The Company’s commercial real estate team from Savills is currently in negotiations on numerous sites for the planned expansion of the Company’s retailer, Organic Garage, with plans to expand locations across Ontario. The Company will provide updates upon the execution of lease(s) and/or material information related to new locations.
• Renovation of the Organic Garage Thornhill location is proceeding as planned and is anticipated to be fully completed by the end of April, reflecting the new Organic Garage branding and amenities. Once complete, the Thornhill location will have all the same amenities as the Company’s newer retail locations, including the successful ‘Hand-Picked Partners’: Cali-Rolls Sushi, Cheese Boutique, Village Juicery, and Rival House. The location will also include the Company’s ‘Expanding Zero Waste’ stations for self-serve RO Water, Spices, Olive Oil, Vinegar, and Teas. Other amenities that will be updated in this location are the popular TeaBot station, Express Brew station, and upgraded freezer door space for expanded offerings.
• Due to numerous customer requests, Organic Garage will launch its e-gift card program, which will be available for purchase online following the Company’s upcoming new website update. The Company anticipates the e-gift card will generate an additional stream of revenue for Organic Garage, and will complement further expansion of the online customer base via the partnership with online grocery delivery and pick-up giant, Instacart.

FUTURE OF CHEESE

• Development of the e-commerce platform is underway and the Company plans an accelerated Q2 launch due to significant customer demand, primarily from customers outside of the southern Ontario market, where the products are currently sold in retail locations.
• Advanced discussions are underway to grow the Future of Cheese senior management team as the brand plans its near-term expansion into the US market. These individual(s) have significant industry-leading experience in the brand development and sales and marketing areas for well-established North American CPG brands both in the general, and plant-based, spaces.
• Advanced discussions are currently underway with established Canadian and US-based co-packers to produce the Future of Cheese line of plant-based cheeses and to ensure the Company can service the potential large-scale demand from national retailers and distributors without interruption or production bottlenecks.
• Sales for the Future of Cheese have increased approximately 230% quarter-over-quarter (Q4 2021 – Q1 2022). The retail expansion has increased approximately 50% in the same period.

“As we remain very aware of the global focus on the tragic events taking place in Europe, and the attention on news related to these events, we want to assure our shareholders that progress and advancements are underway as planned. We will follow up with news of material milestones as we complete current negotiations and agreements while remaining respectful of the news flow related to the events overseas,” said Matt Lurie, President of ORAGIN. “This continues to be a very exciting time for our company, and we look forward to sharing further developments in the near future.”

About Oragin Foods Inc.
Oragin Foods Inc (TSXV: OG, OTCQX: OGGFF, FRA: 9CW) is a Canadian multi-pronged food company, where new and innovative food and beverage brands are developed, acquired, grown and commercialized through a Consumer Packaged Goods (CPG) Division, and the company also houses a Retail Division, which owns and operates one of Canada’s leading natural and organic food retailers, Organic Garage. For more information please visit the ORAGIN website at www.oragin.com.

About Future of Cheese
The Future of Cheese Inc is a Canadian plant-based cheese innovator and manufacturer led by one of the world's best and recognized cheese makers, along with one of Canada's top chefs, and supported by a team of science minds and sustainability experts. Utilizing unique aging and manufacturing processes, a well-established distribution network and high-profile marketing channels, the Company is set to disrupt the rapidly growing plant-based dairy alternatives market, paving the way for the future of plant-based dairy alternatives! For more information please visit the Future of Cheese website at www.futureofcheese.com.

About Organic Garage Ltd.
Organic Garage is one of Canada’s leading independent organic grocers and is committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices. The Company’s stores are in prime retail locations designed to give customers an inclusive, unique and value-focused grocery shopping experience. Founded in 2005 by a fourth-generation grocer, Organic Garage is headquartered in Toronto. The Company is focused on continuing to expand its retail footprint within the Greater Toronto Area. For more information please visit the Organic Garage website at www.organicgarage.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Oragin Foods, that may cause the actual results, level of activity, performance or achievements of Oragin Foods to be materially different from those expressed or implied by such forward looking statements. Although Oragin Foods has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Oragin Foods’ actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, Oragin Foods assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005250/en/

Bill Mitoulas

T: (416) 479-9547

E: ir@oragin.com

W: www.oragin.com

Source: Oragin Foods Inc.

FAQ

What initiatives is Oragin Foods (OGGFF) currently pursuing?

Oragin Foods is onboarding skilled personnel for US operations, expanding its CPG business, and developing its Future of Cheese brand.

How much cash does Oragin Foods have as of the latest update?

Oragin Foods has a cash balance exceeding $2 million.

What is the sales growth percentage for the Future of Cheese product line?

Sales for the Future of Cheese increased approximately 230% quarter-over-quarter.

Is Oragin Foods planning any expansions?

Yes, Oragin Foods is planning to expand its retail locations across Ontario and develop its e-commerce platform.

When can shareholders expect updates from Oragin Foods (OGGFF)?

Oragin Foods plans to provide regular updates on their initiatives in the coming weeks and months.