Global Food and Ingredients Ltd. announced a new debt facility of up to $10.0 million in its pet food division, Big Sky Milling Inc. as well as a further injection of $0.5 million in the Company's core ingredients division (the "Subordinated Loan", and together with the Pet Food Transaction, the Transactions) by 35 Oak Holdings Ltd. (35 Oak). Concurrent with the closing of the Transactions, the Company's core ingredients business, operated through GFI's subsidiary Global Food and Ingredients Inc., entered into a new $20 million asset-based credit facility (the ABL Facility) to fund the day to day working capital requirements of the core ingredients business. The proceeds from the Transactions and ABL Facility will be used by the Company's core ingredients division to strengthen the Company's balance sheet through the refinancing and repayment of existing loans and unlock liquidity to invest in further growth of the operation.

The proceeds drawn from the ABL Facility, coupled with a portion of the proceeds from the Transactions, will be used to repay the Company's existing asset-based lending facility. The ABL Facility replaces the Company's previous credit facility and is committed for three years, maturing February 1, 2027. The ABL Facility is secured by a first ranking interest in the Company's core ingredients' accounts receivable and inventory.

The ABL Facility will immediately unlock approximately $2-3 million in additional capital, which will be used to realize on growth opportunities. The ABL Facility will bear interest at an annual rate that is equal to the 1-month CDOR Rate plus 4%, subject to a minimum interest rate of 8.38% during the term of the facility. Further details regarding the terms of the ABL Facility will be made available under the Company's SEDAR+ profile.

Concurrent with the close of the Pet Food Transaction, the Company entered into a $0.5 million Subordinated Loan with 35 Oak. The Subordinated Loan will have a term of one year from the date of issuance, accrue interest at a rate of 15% per annum and be payable in full at maturity. The Subordinated Loan includes a 3.0% commitment fee payable at disbursement and is secured by a general security agreement over all of the assets of the Company's core ingredients division, subordinated to the Company's senior lenders.