ELSE ANNOUNCES INVESTMENT FOR GROSS PROCEEDS OF UP TO US$1,280,000

Rhea-AI Summary

ELSE NUTRITION HOLDINGS (TSX: BABY; OTC: BABYD) entered a convertible security funding agreement with Lind Global Fund III LP to raise up to US$1,280,000 in staged draws. On initial closing the company will issue a US$420,000 Initial Convertible Security (net proceeds US$337,750 after discount/fees) with a 24‑month maturity, monthly convertibility (1/20th per month) and a post‑180‑day company Buy‑Back Right with a 5% premium.

The financing includes detached warrants (2,069,781 First Warrants at 130% of 5‑day VWAP, 48‑month expiry) and TSX conditional approval to list up to 10,582,354 additional shares; converted shares will be subject to a four‑month lockup and resale/short‑sale restrictions. Proceeds are for production and working capital.

Positive

• Net initial proceeds of US$337,750
• Staged commitment to raise up to US$1,280,000
• TSX conditional listing for 10,582,354 additional shares
• Attached warrants: 2,069,781 First Warrants issued

Negative

• Initial face value US$420,000 reduced to net US$337,750 after discount/fees
• Converted shares subject to 4 months, 1 day lockup limiting liquidity
• Potential dilution up to 10,582,354 shares if conversions occur
• Conversion pricing can be at a discount (as low as 80% VWAP) increasing dilution

VANCOUVER, BC, Nov. 24, 2025 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (TSX: BABY) (OTC: BABYD) (FSE: 0YL) (the "Company") announces that the Company has entered into a new convertible security funding agreement (the "Agreement") with Lind Global Fund III LP, an entity managed by The Lind Partners, LLC, a New York-based institutional fund manager (together, "Lind"). Under the terms of the Agreement, the Company will on the initial closing issue an initial convertible security (the "Initial Convertible Security") with a face value of US$420,000, which would provide US$337,750 in funds after deduction of the original issue discount and closing fees. 

On closing, the Initial Convertible Security will have a 24-month maturity date, and will be convertible into common shares of the Company (the "Shares"), subject to a four month lock up period. Lind will be able to convert 1/20^th of the face value each month at a conversion price equal to the greater of (i) 80% of the five-day volume weighted average price of the Shares immediately prior to each conversion, and (ii) the five-day volume weighted average price of the Shares immediately prior to each conversion less the maximum allowable discount pursuant to the policies of the Toronto Stock Exchange. The outstanding face value of the Initial Convertible Security, after 180 days, may be repaid in cash at the discretion of the Company, with a 5% premium (the "Buy-Back Right"). Should the Company exercise its Buy-Back Right, Lind would have the option to convert up to 33% of the face value of the Initial Convertible Security into Shares.

Following the Initial Convertible Security issuance, the Company would have the option of a follow-on investment of up to US$310,000 (the "Second Draw"), upon mutual agreement, in exchange for the issuance of a second convertible security (the "Second Convertible Security"), and thereafter an optional follow-on investment of up to US$310,000 (the "Third Draw"), upon mutual agreement, in exchange for the issuance of a third convertible security (the "Third Convertible Security"), and thereafter an optional follow-on investment of up to US$310,000, (the "Fourth Draw"), upon mutual agreement, in exchange for the issuance of a fourth convertible security (the "Fourth Convertible Security").

The Initial Convertible Security, and the Second Convertible Security, the Third Convertible Security and the Fourth Convertible Security, as applicable, will include detached warrants (the "Warrants") to purchase Shares. In connection with the Initial Convertible Security, the Company will issue 2,069,781 Warrants (the "First Warrants") having an exercise price equal to 130% of the five-day volume weighted average price of the Shares immediately prior to the closing date of the Initial Convertible Security and an expiry date of 48 months from the date of issuance. In connection with the Second Draw, Third Draw and Fourth Draw, the Company will issue such number of Warrants calculated by dividing the dollar amount of the applicable Draw by the five-day volume weight average price of the Shares immediately before the closing of the applicable Draw, each Warrant having an exercise price equal to 130% of the five-day volume weight average price of the Shares immediately before the closing of the applicable Draw and an expiry date of 48 months from the date of issuance. 

The Agreement provides that the Initial Convertible Security, and the Second Convertible Security, the Third Convertible Security and the Fourth Convertible Security, as applicable, will include volume restrictions on resale of the Shares issued on conversion of the Initial Convertible Security, and the Second Convertible Security, the Third Convertible Security and the Fourth Convertible Security, if applicable, as well as restrictions on short sales.

The proceeds from the issuance of the Initial Convertible Security will be applied towards production and general and working capital purposes.

The Toronto Stock Exchange ("TSX") has determined to accept notice of the Company entering into the Agreement and issuing the Initial Convertible Security and the First Warrants, and has conditionally approved for listing up to an additional 10,582,354 Shares. The Shares issued pursuant to any conversions would be issued under TSX private placement rules and would not be freely tradable for four months and one day following closing and would be subject to restrictions under applicable Canadian and United States securities laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities offered have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons (as both such terms are defined in Regulation S promulgated under the U.S. Securities Act) absent registration or an applicable exemption from such registration requirements.

About The Lind Partners

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 150 direct investments totaling over US$1.5 Billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011. For more information, please visit http://www.thelindpartners.com.

About Else Nutrition Holdings Inc. 

Else Nutrition Holdings Inc. is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formula. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
• "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category

During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon

For more information, visit www.elsenutrition.com or @elsenutrition on Facebook and Instagram.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include but are not limited to, statements with respect to the funding under the Agreement and the issuance of convertible securities, including the Initial Convertible Security, the Second Convertible Security, the Third Convertible Security, the Fourth Convertible Security and the Warrants under the Agreement. These forward-looking statements are made as of the date of this press release. Such forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although the Company believes the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the ability of the Company and Lind to negotiate the terms of the definitive funding agreement, variations in market conditions; currency exchange rates; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to access further funding, to continue its projected growth, or to be fully able to implement its business strategies. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Else Nutrition Holdings Inc.

FAQ

What financing did ELSE (BABYD) announce on November 24, 2025?

ELSE announced a convertible security agreement with Lind to raise staged proceeds up to US$1,280,000, starting with a US$420,000 Initial Convertible Security.

How much cash will ELSE receive from the initial convertible security on closing?

The Initial Convertible Security has a face value of US$420,000 and yields US$337,750 in net proceeds after the original issue discount and closing fees.

What are the conversion terms for ELSE's Initial Convertible Security (BABYD)?

24‑month maturity; Lind can convert 1/20th of face value each month at the greater of (i) 80% of 5‑day VWAP before conversion or (ii) 5‑day VWAP less TSX max discount.

What warrants were issued with ELSE's financing and when do they expire?

ELSE will issue 2,069,781 First Warrants at an exercise price equal to 130% of the 5‑day VWAP prior to closing; expiry is 48 months from issuance.

How many additional ELSE shares did the TSX conditionally approve for listing?

The TSX conditionally approved listing of up to 10,582,354 additional shares related to conversions under the agreement.

What are the restrictions on converted shares from ELSE's BABYD financing?

Shares issued on conversion will be issued under TSX private placement rules, not freely tradable for 4 months and 1 day, and will be subject to resale and short‑sale restrictions.

What is ELSE's stated use of proceeds from the Initial Convertible Security?

Proceeds will be applied towards production and general working capital.