Company Announcements

TSXV: ESBL

VANCOUVER, BC , May 1, 2026 /PRNewswire/ - Eshbal Functional Food Inc. (TSXV: ESBL) ("Eshbal" or the "Company") reports its financial results and MD&A for the year ended December 31, 2025.

The Company reported revenues of US $13.8 million for 2025, compared to $11.4 million in 2024, representing an increase of approximately 20% year-on-year. Gross profit increased to $3.5 million, with gross margin improving to approximately 25.4%, compared to 22.7% in the prior year.

The increase in revenues and gross profit reflects continued growth in the Company's core operations, including expanded product offerings, increased sales to existing customers, and the addition of new customers.

Operating loss for the year was $0.3 million, compared to operating income of $0.6 million in 2024, primarily reflecting higher general and administrative expenses associated with the Company's transition to a public company. Net loss for the year was $2.9 million, mainly due to one-time listing expenses incurred in connection with the reverse takeover completed in April 2025.

Further to the Company's announcement on February 6, 2026 that it acquired the business of Gluten Free Nation, on April 9, 2026, the parties entered into a side letter agreement that in the event the issuance of shares of Eshbal pursuant to the attainment of certain milestones would cause Starcall Broadcasting LLC ("Starcall"), the vendor of the Gluten Free Nation assets, together with its affiliates and joint actors to own 10% or more of the issued voting securities of Eshbal, Eshbal will pay cash to Starcall in lieu of issuing such shares that result in Starcall owning 10% of the outstanding Eshbal shares.

The Company's audited financial statements and Management's Discussion and Analysis for the year ended December 31, 2025 are available on SEDAR+ at www.sedarplus.ca

About Eshbal Functional Food Inc.

Eshbal Functional Food Inc. (TSXV: ESBL) is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, foodservice, and online channels in North America.

Since listing on the TSX Venture Exchange in 2025, Eshbal has been executing its North American growth strategy through a combination of organic expansion and strategic acquisitions. The Company's operations include gluten-free, better-for-you, and functional food products sold across retail, foodservice, and online channels.

During this period, the Company completed the acquisition of Gluten Free Nation, acquired a majority interest in Dare to Be Different Foods, launched localized North American production in partnership with Queen Street Bakery, and strengthened its commercial infrastructure in the region.

Eshbal's strategy is focused on integrating complementary better-for-you brands into a centralized operating platform designed to expand distribution, support operational efficiencies, and create long-term growth opportunities.

(Eshbal maintains active digital engagement and investor communications through its corporate website and official social media channels:

Website                   LinkedIn                  Facebook                 Instagram

Disclaimers:

Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release.

This press release contains "forward-looking statements" within the meaning of the securities laws. Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

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SOURCE Eshbal Functional Foods Inc