Mr. Nicholas Reichenbach reports

FLOW BEVERAGE CORP. AND BIOSTEEL SPORTS INC. ENTER INTO 3-YEAR MANUFACTURING AGREEMENT

Flow Beverage Corp. and BioSteel Sports Inc. have entered into a manufacturing agreement whereby Flow will manufacture and package BioSteel-branded sport hydration beverages in the Tetra Prisma format. Flow has been a manufacturer of BioSteel-branded beverages since 2020. On Dec. 1, 2023, BioSteel Sports, a recently incorporated company controlled by Dan Crosby, acquired from DC Holdings Ltd. (doing business as Coachwood Group of Companies, an entity also controlled by Mr. Crosby) certain assets that were previously owned by BioSteel Sports Nutrition Inc.

The agreement has a term of three years, with commitments from BioSteel Sports to purchase minimum annual volumes which equate to approximately $19.3-million in revenue over the term. Additionally, the agreement has a take-or-pay provision requiring that BioSteel Sports pay Flow the equivalent of 80 per cent of the value of the difference between the applicable minimum annual volume and the actual volume purchased during the relevant 12-month period over the term. The agreement provides for the committed purchase of 12 million units within the first four months of the agreement, 1,062,500 averaged minimum committed purchases of packs per month for the remainder of current calendar year, and a cumulative minimum production of 24 million packs for each subsequent calendar year under the term.

"It's very exciting to be entering into this new partnership with BioSteel Sports, co-packing one of the most innovative brands in sports hydration and working closely with its new owner. Having also recently added BeatBox Party Punch alcoholic beverages and Joyburst energy drinks as co-pack partners, our Aurora production facility is scaling to meet this increased demand from brands and their consumers for premium and functional beverages offered in an environmentally conscious manner. The growth in our co-pack business is expected to contribute to ongoing improvements to profitability that have also included our restructuring, a transition to third party logistics and the addition of a fourth production line in Aurora," said Nicholas Reichenbach, founder and chief executive officer of Flow.

Mr. Crosby, chief executive officer of BioSteel Sports, added: "I'm excited to announce that we'll be starting production of the very popular ready-to-drink BioSteel products at Flow. This ensures our retailers will always have a steady supply. Our partnership with the Flow team has been fantastic, and we're eager to keep BioSteel's momentum going strong in the market."

About Flow Beverage Corp.

Flow is one of the fastest-growing premium water companies in North America. Founded in 2014, Flow's mission since day one has been to reduce environmental impacts by providing sustainably sourced naturally alkaline spring water in a recyclable and up-to-75-per-cent renewable, plant-based pack. Today, the brand is B Corp. certified with a best-in-class score of 126.5, offering a diversified line of health- and wellness-oriented beverage products: original naturally alkaline spring water, award-winning organic flavours, collagen-infused and vitamin-infused flavours in sizes ranging from 330 millilitres to one litre. All products contain naturally occurring electrolytes and essential minerals and support Flow's overarching purpose to bring wellness to the world through the positive power of water.

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