Mr. Christian Bullock reports

PUREBREAD BRANDS INC. REPORTS FY 2026 RESULTS

Purebread Brands Inc. has released its financial results for the year ended March 31, 2026, the highlights of which are included in this news release. The full set of consolidated financial statements and management discussion and analysis can be viewed by visiting the company's website or its SEDAR+ profile.

The results reflect a pivotal year of financial discipline and repositioning for the company. Chief executive officer Christian Bullock commented on the results:

"I'm excited about the momentum we're building heading into a strong 2026 and beyond. In a very short period of time, the new management team has converted a considerable amount of debt, strengthened our balance sheet, and driven meaningful cost efficiencies and operational enhancements that have positioned the business for what's next, with a clear plan and the infrastructure in place to scale. This year's adjusted EBITDA has substantially improved, backed by a strong plan, team, and vision to continue these positive increases. Our focus now is to rapidly expand our chain size and grow revenue over the next 12 months while strengthening performance across our existing bakeries."

Financial highlights -- FY 2026

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.6-million, a 572-per-cent improvement from an adjusted EBITDA loss of $300,000 in the prior year. The improvement in adjusted EBITDA reflects the continued implementation of initiatives to optimize operations and enhance cost-efficiency across the business.
• Gross margin increased year over year to 64 per cent from 63 per cent in the prior year. The increase in gross margin was largely as a result of the company's strategic rationalization of operations, including a shift in focus toward its core bakery business and reduced emphasis on Coho Commissary Kitchen, resulting in higher overall gross margins.
• Operating expenses decreased 26 per cent year over year. The decrease in the operating expenses aligns with management's cost reduction efforts and continued focus on streamlining the business going forward.
• Revenue decreased 8 per cent year over year from $16.0-million to $14.8-million due to the closure of certain Coho Commissary Kitchen locations.

FY 2026 company highlights

Streamlined shared kitchen operations

• Cost reductions: continued to lower operating expenses, with further profit maximization efforts planned for future quarters;
• Closures: transitioned two Coho commissary Kitchen locations (Pandora Street and Gibsons) on Sept. 5, 2025, back to landlords, and closed the East Hastings and Victoria Public Market sites. These strategic changes will help streamline operations and allocate resources toward expanding Purebread Bakery.

Corporate updates

• Completed debt-to-equity conversion transactions under which it issued 4,902,056 common shares and 2,451,028 share purchase warrants to settle $5,211,598 of outstanding debt at a conversion price of $1.25 per unit, strengthening the company's balance sheet and enhancing financial flexibility for future growth initiatives;
• Implemented a one-for-five common share consolidation to optimize its capital structure and enhance the long-term value for shareholders;
• Amrit Maharaj has resigned from the board of directors and will not stand for re-election at the company's upcoming AGM (annual general meeting).

About Purebread Brands Inc.

Purebread Brands is a leading fast-casual bakery and cafe brand, operating seven bakery locations across British Columbia and empowering food and beverage entrepreneurs and communities with exceptional food experiences. With a vision to grow nationally, Purebread is building the team and infrastructure to drive retail expansion in vibrant communities across Canada and beyond.

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