Freshlocal Solutions Inc. (TSX:LOCL) et al.

Freshlocal Solutions Inc. (TSX:LOCL) ("Freshlocal") and various related entities (the "Freshlocal Group"), a group of organic grocery companies, were granted protection under the CCAA on May 16. The Freshlocal Group’s core business consists of: a) an online organic grocery store with 2 physical locations in Vancouver, British Columbia operating as Spud or eGrocery; b) traditional brick and mortar organic grocery stores in Alberta operating as Blush Lane Organic Market; and c) a software tool for businesses with online grocery operations operating as Food-X or the eGMS Platform. As a developer of business-to-business technology, the Freshlocal Group requires continuous access to investor financing, and has historically been able to access capital through the capital markets, convertible debenture private placement offerings, borrowing and various grants. Prior to the CCAA application, the Freshlocal Group raised bridge financing, but the bridge facility was not sufficient to avoid the need to commence formal insolvency proceedings. In addition, the COVID-19 pandemic caused significant challenges, including global supply chain and labour shortages, for the group. EY was appointed monitor. Counsel is Bennett Jones for the Freshlocal Group, BLG for the monitor, and Aird & Berlis for Silicon Valley Bank. Third Eye Capital is the DIP lender.