Eshbal Signs with Leading U.S. Food Broker Active Marketing Group to Scale Distribution; Grants Performance Equity

---

TSXV: ESBL

VANCOUVER, BC, Nov. 5, 2025 /PRNewswire/ - Eshbal Functional Food Inc. (TSXV: ESBL) ("Eshbal" or the "Company") is pleased to announce that it has entered into a sales and marketing agreement with Active Marketing Group ("AMG"), a leading U.S.-based consumer packaged goods marketing and brokerage firm. Under the agreement, AMG will represent Eshbal's flagship gluten-free Barili products, as well as additional products that the Company intends to bring to the U.S. market.

The agreement with AMG marks Eshbal's first scaled entry into the United States. AMG has a 37-year history of placing grocery and other consumer packaged goods in some of the country's largest grocery, natural, mass-market, online and specialty retailers.

Under the agreement, AMG will work closely with retailers across the country to build distribution and brand awareness for Eshbal in the "better-for-you" food category.

"Eshbal's pita delivers the closest experience we've seen to traditional bread in a gluten-free format — both in taste and texture," said Todd Grisoff, President of AMG. "Its authentic feel and thoughtful formulation offer a fresh way to enjoy bread — without compromise. In a category that often settles for 'good enough,' Eshbal stands out. It's what we call smart eating — and for retailers, a smart choice."

"This partnership marks an important milestone in our go-to-market plan for North America. AMG's deep relationships with major retail buyers, coupled with their strong track record of driving sell-through, creates a strong foundation for the U.S. launch of Barili and other Eshbal brands," said Avi Markus, Chief Commercial Officer, Eshbal.

"Bringing our top-selling products into the North American market is a key pillar of our corporate growth strategy. Our products, developed over 20+ years, maintain the texture and nutritional value of gluten-containing analogs, and we're delighted to be working with AMG to bring these products to Celiac and gluten-averse consumers throughout the United States," said Tomer Bar-Meir, CEO, Eshbal.

About Active Marketing Group

Active Marketing Group (AMG), based in Destin, Florida, is a U.S. sales and marketing brokerage agency with more than 37 years of experience representing domestic and international food brands across grocery, mass, club, natural, drug, and specialty channels. The company maintains long-standing relationships with major U.S. retailers including Walmart, Target, Publix, CVS, Sam's Club, Meijer, and others. AMG provides end-to-end representation services, from strategic sales management to in-market execution, supporting sustainable brand development in the U.S. marketplace.

Equity Compensation

Eshbal announces that it has granted an aggregate of 1,260,000 incentive stock options (the "Options") and 741,000 restricted share units ("RSUs") in accordance with the Company's Omnibus Incentive Plan, of which 560,000 Options and 621,520 RSUs were granted to certain directors and officers of the Company. Each Option is exercisable to acquire one common share of the Company upon payment of an exercise price of $0.25 per common share for a period of up to five (5) years from the date of grant. The RSUs vest as follows: (i) 251,520 of the RSUs vest as to 50% immediately and the remainder in six equal monthly installments over the next 6 calendar months at the end of each such calendar month; and (ii) 490,000 of the RSUs vest in equal monthly installments over the next 12 calendar months at the end of each such calendar month.

About Eshbal Functional Food

Eshbal Functional Food is an innovative and profitable food-tech company with a broad offering of gluten-free and "Better for You" products. Eshbal, which saw 2024 revenues of more than USD $11 million, is preparing to enter the multi-billion-dollar gluten-free market with an initial launch of its successful line of baked goods.

To learn more, visit:  Eshbal.com  

Disclaimers: Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release.

This press release contains "forward-looking statements" within the meaning of the securities laws. Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

SOURCE Eshbal Functional Foods Inc