Happy Belly Food Group Announces the Sale of Holy Crap Foods as It Focuses on Accelerating Its QSR Businesses

Executive Summary

• Happy Belly Food Group Inc. entered a binding LOI to sell its Holy Crap Foods cereal and oatmeal brand for CDN $1,000,000 cash (plus working‑capital adjustments).
• Proceeds are non‑dilutive and will be redeployed into the company’s core Quick Service Restaurant (QSR) portfolio to fund expansion of existing brands.
• Closing is anticipated in early Q1 2026, representing a strategic shift to focus exclusively on high‑margin QSR operations.

Key Details

• Transaction: Sale of Holy Crap Foods (cereal & oatmeal brand).
• Consideration: CDN $1,000,000 cash plus customary working‑capital adjustments.
• Closing Timeline: Expected in early Q1 2026.
• Use of Proceeds: Entire amount will be redeployed into Happy Belly’s QSR division to accelerate restaurant development and franchise growth.
• Strategic Rationale: Aligns with management’s plan to concentrate on core QSR businesses, which are delivering strong, predictable, high‑margin growth in Canada and upcoming U.S. operations.
• CEO Quote (Sean Black): Emphasized the sale as a “strategic step forward” to monetize an asset at an attractive valuation and reinvest cash into higher‑return restaurant locations.

Notable Quotes

“The sale of Holy Crap Foods provides Happy Belly with a non‑dilutive $1 million of cash, which the Company intends to redeploy into our QSR division… We will continue to invest with a focus on ROIC, and when the opportunity arises to monetize an asset at an attractive valuation, we will do so.” – Sean Black, CEO

All boilerplate, forward‑looking disclaimer, and franchise contact information have been omitted for brevity.