Purebread's Coho receives demand letter from BMO

Mr. Amrit Maharaj reports PUREBREAD BRANDS INC. ANNOUNCES RECEIPT OF DEMAND LETTER Purebread Brands Inc.'s wholly owned subsidiary, Coho Acquisition Corp. (the borrower), has received a demand letter from Bank of Montreal in respect of amounts owed under a letter of agreement dated June 28, 2023, as amended, among the bank, the borrower and Purebread Bakery Inc. as guarantor. In the demand letter, the bank demanded immediate payment of $5,209,930 owed under the letter of agreement. The outstanding balance consists of a revolving operating demand loan, a non-revolving demand loan and a corporate credit card facility. The bank has also delivered to the company a notice of intention to enforce security pursuant to the Bankruptcy and Insolvency Act (Canada) in respect of the indebtedness secured under a general security agreement dated Sept. 20, 2023, covering all property of the Purebread Bakery. Pursuant to Section 244(1) of the Bankruptcy and Insolvency Act (Canada), the bank shall not enforce its security over the collateral until Oct. 14, 2025, unless the borrower consents to earlier enforcement. The company is pursuing opportunities to repay the amounts due under the letter of agreement, which may include a recapitalization or refinancing transaction, or a third party assumption or purchase of the outstanding obligations. The company will provide an update when further disclosure is required or otherwise appropriate. About Purebread Brands Inc. Purebread Brands is a leader in fast-casual cafe/bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves. We seek Safe Harbor.