ASX, FFF, Forbidden Foods to acquire Oat Milk Goodness in all-scrip deal

Highlights

• Share Purchase Agreement (SPA) executed to acquire leading plant-based non-dairy business Oat Milk Goodness(OMG)

• Co-founded by Australian cricketer Steve Smith, OMG competes in the fast-growing oat milk sector with a unique product offering defined by its seed oil-free formula

• OMG has established distribution in Australia with major retailers and targeted international expansion opportunities into large markets including India

• OMG is currently delivering annualised revenue of $1.2m – Near term revenue growth anticipated following completion of transaction

• In accordance with the SPA, Forbidden Foods will acquire 100% of the shares in OMG for a consideration of $3.42m via the issue of 285m ordinary shares priced at 1.2c per share, subject to conditions precedent and shareholder approval

• Acquisition unlocks a strategic opportunity to expand FFF’s product offering by integrating OMG’s leading range of plant-based milk products to complement the Company’s Blue Dinosaur healthy snack range

• Combined entity will leverage the respective strengths of both companies in sales & marketing, logistics and supply chain management to drive growth for a streamlined, multi-channel product offering • Acquisition will allow Forbidden Foods to considerably increase its revenue profile, Australian distribution network and international expansion opportunities, as well as streamline operating costs associated with both companies

• Proposed transaction marks the first step in FFF’s transition to a leading brand manager in the ‘Better for You’ FMCG segment – additional acquisitions actively being explored

• As part of the transaction, FFF has secured firm commitments from professional and sophisticated investors to raise $650,000 through the issue of ~54.17m new fully paid ordinary shares at $0.012 (1.2c) per share with one free attaching 3-year option with an exercise price of 1.5c for every two shares subscribed

• Capital raise includes commitments of $200,944.50 from OMG personnel and $40,000 from existing FFF management, of which the amount raised from existing FFF management will be subject to shareholder approval