Else Nutrition Releases Bi-Weekly Default Status Update Amidst MCTO Restrictions

On May 13, 2025, Else Nutrition Holdings Inc., publicly traded under TSX: BABY and OTCQX: BABYF, communicated its latest bi-weekly default status report. This announcement comes in the wake of a voluntary cease trade order (MCTO) that was granted due to delays in completing the necessary audit procedures for their annual financial statements.

Background on MCTO and Current Situation

The MCTO, which originated from a press release on April 1, 2025, was implemented by the British Columbia Securities Commission as stipulated by National Policy 12-203. The company encountered time constraints in finalizing its Annual Filings, which include management's discussion and analysis (MDA) and the annual information form (AIF) for the fiscal year ended December 31, 2024. As per the MCTO, both the Chief Executive Officer and Chief Financial Officer are prohibited from trading the company's securities until these filings are conducted and the order is rescinded. Fortunately, this MCTO does not restrict other shareholders from trading their securities.

In accordance with NP 12-203, Else Nutrition is mandated to issue bi-weekly reports during the MCTO period. The latest report confirms that there have been no material alterations regarding the information disclosed in the initial MCTO announcement. Furthermore, the company relayed that it remains compliant with these reporting guidelines.

Regular Updates and Progress

Since the MCTO was issued, Else Nutrition has stated that they are actively collaborating with their auditor to finalize the necessary documentation. The company anticipates that all Annual Filings will be submitted by May 27, 2025, with a precautionary timeframe that extends to no later than May 30, 2025. A subsequent public announcement will follow once these filings have been completed and filed.

The company is committed to adhering to alternative information guidelines mandated by NP 12-203 until the Annual Filings have been officially submitted.

About Else Nutrition Holdings Inc.

Else Nutrition is positioning itself as a key player in the food and nutrition sector, focusing on innovative, clean, and plant-based products designed for all age groups, including infants and toddlers. Their flagship product, a plant-based formula devoid of soy, serves as an alternative to conventional dairy-based formulas.

Since the debut of the Plant-Based Complete Nutrition for Toddlers, created with wholesome ingredients like almonds and tapioca, the brand has garnered numerous endorsements and accolades. Their increasing popularity led to significant sales growth and support from national retailers.

Recognition and Awards

Else Nutrition has been the recipient of various industry honors, such as the 2017 Best Health and Diet Solutions award at the Global Food Innovation Summit in Milan. In 2020, they secured the title of #1 Best Seller on Amazon in the toddler formula category. Furthermore, they received the Best Dairy Alternative accolade at the World Plant-Based Expo in 2021 and were finalists in the Nexty Award category at Expo West 2022.

Among recent achievements, Else Super Cereal clinched the position of #1 Best Seller in the Baby Cereal segment across all brands on Amazon in September 2022, showcasing the brand's substantial market presence.

Interested parties can find out more about their products and the company at www.elsenutrition.com or follow them on social media at @elsenutrition.

Caution Regarding Forward-Looking Statements

This report includes forward-looking statements which may pose risks and uncertainties. Statements regarding the expected completion of filings and anticipated timelines reflect company estimations based on current conditions and management's beliefs. However, these predictions are not guaranteed and may change according to varying market conditions and regulatory approvals. Investors are advised to exercise caution and not to place undue reliance on these forward-looking statements, as actual results may differ.

By maintaining transparency through regular updates, Else Nutrition showcases its commitment to compliance and shareholder communication while continuing to innovate within the plant-based nutrition sphere.