Eshbal Signs with Leading U.S. Food Broker Active Marketing Group to Scale Distribution; Grants Performance Equity

Executive Summary

• Eshbal Functional Food Inc. entered a sales and marketing agreement with Active Marketing Group (AMG) to launch its gluten‑free Barili products across major U.S. retail channels, marking the company’s first scaled entry into the United States.
• The partnership is supported by AMG’s 37‑year track record and relationships with retailers such as Walmart, Target, and CVS, providing a strong go‑to‑market platform for Eshbal’s “better‑for‑you” product line.
• Concurrently, Eshbal granted 1,260,000 incentive stock options and 741,000 restricted share units to directors and officers under its Omnibus Incentive Plan, with an exercise price of $0.25 per share.

Key Details

• Sales & Marketing Agreement
• AMG will represent Eshbal’s flagship gluten‑free Barili products and additional future SKUs in the U.S. market.
• Scope includes placement in grocery, natural, mass‑market, online, and specialty retailers nationwide.

• The agreement is intended to build distribution, brand awareness, and sell‑through for Eshbal’s “better‑for‑you” food category.

• Strategic Rationale

• Provides Eshbal with immediate access to AMG’s extensive retailer network (e.g., Walmart, Target, Publix, CVS, Sam’s Club, Meijer).

• Supports the company’s corporate growth strategy of expanding into the multi‑billion‑dollar gluten‑free market.

• Equity Compensation

• Total granted: 1,260,000 incentive stock options (Options) and 741,000 restricted share units (RSUs).
• Options: Exercise price $0.25 per common share; exercisable for up to five years from grant date.
• RSUs vesting schedule:
  • 251,520 RSUs – 50 % vest immediately; remaining half in six equal monthly installments over the next 6 months.
  • 490,000 RSUs – vested in equal monthly installments over the next 12 months.

• Grants were made to certain directors and officers (560,000 Options and 621,520 RSUs).

• Company Background

• Reported 2024 revenues of > US$11 million.
• Positions itself as an innovative, profitable food‑tech company with a broad gluten‑free product portfolio.

Notable Quotes

• “This partnership marks an important milestone in our go‑to‑market plan for North America… creates a strong foundation for the U.S. launch of Barili and other Eshbal brands.” – Avi Markus, Chief Commercial Officer, Eshbal
• “Eshbal’s pita delivers the closest experience we’ve seen to traditional bread in a gluten‑free format…” – Todd Grisoff, President, Active Marketing Group

All forward‑looking statements are subject to risks and uncertainties; actual results may differ materially.