Purebread Brands Inc. Announces Receipt of Demand Letter

Vancouver, British Columbia--(Newsfile Corp. - October 8, 2025) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") announces that its wholly owned subsidiary, Coho Acquisition Corp. (the "Borrower"), has received a demand letter (the "Demand Letter") from the Bank of Montreal (the "Bank") in respect of amounts owed under a letter of agreement dated June 28, 2023, as amended (the "Letter of Agreement"), among the Bank, the Borrower, and Purebread Bakery Inc. as guarantor.

In the Demand Letter, the Bank demanded immediate payment of C$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 (the "BIA Notice") pursuant to the Bankruptcy and Insolvency Act (Canada) in respect of the indebtedness secured under a General Security Agreement dated September 20, 2023, covering all property of the Purebread Bakery Inc.

Pursuant to section 244(1) of the Bankruptcy and Insolvency Act (Canada), the Bank shall not enforce its security over the collateral until October 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 Inc. 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.

For more information and updated investor presentation, please visit www.purebreadbrands.com or contact:

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include discussions of future plans, estimates and forecasts.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. In making the forward looking statements in this news release, the Company has applied several material assumptions. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

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