Forbidden Foods Ltd. provided the following update with respect to its foodservice contract with FreshMex Sauces Pty Ltd. ("Zambrero"). As previously announced and in line with the Company's strategic shift away from foodservice, the Company has negotiated to dissolve its contract with Zambrero in Third Quarter and not Q4, which was scheduled to expire on 31 March 2023. By way of mutual agreement between the parties, the contract will be dissolved with immediate effect, with existing stock in the pipeline absorbed by Zambrero.

The accelerated exit from this loss-making foodservice contract will unlock significant working capital which will be redeployed to target the growth of Blue Dinosaur® in the United States. Ending the contract will likely result in a reduction in revenue, however, will provide operational efficiencies, a material reduction in freight & storage costs, significant improvements in gross margins and will enable the Company to focus resources on higher-growth, higher- margin business verticals. The Company is continuing to target existing opportunities to deploy additional resources for the sale and distribution of its high-growth, high-margin Blue Dinosaur® product range, which is building strong traction in domestic and international markets.