Eat Well Investment Group Finalizes Financial Filings and Seeks Revocation of Cease Trade Order to Resume Trading

Completion of Financial Disclosure After Overhaul of Reporting Systems

Eat Well Investment Group announced it has met all outstanding continuous disclosure obligations following a thorough reconstruction of its financial reporting infrastructure. The company filed audited consolidated financial statements and Management's Discussion & Analysis (MD&A) for fiscal years ending December 31, 2023, 2024, and 2025. It also submitted unaudited quarterly condensed interim consolidated financial statements and MD&As for all quarters of fiscal years 2024 and 2025. These documents are now accessible on SEDAR+, Canada's securities regulatory database.

This milestone marks a significant recovery for the company, which previously lagged in its disclosure duties. The company rebuilt its entire financial reporting framework from scratch to fully comply with all pending requirements, enabling a comprehensive presentation of its operational and financial performance over a three-year span.

FY2025 Shows Operational Gains Despite Slight Revenue Dip

For the fiscal year ending December 31, 2025, Eat Well reported revenues of $53.2 million, a slight decline from $54.3 million in FY2024, representing about a 2% decrease. However, gross profit rose notably to $6.9 million from $5.9 million in the prior year, a 16% improvement. This margin enhancement reflects the company’s ongoing emphasis on processing efficiency, operational discipline, and cost control at its Saskatchewan and Montana facilities.

The net loss for FY2025 was $6.1 million, improved from a $7.0 million loss in FY2024. This figure includes $2.8 million in one-time refinancing fees and non-cash expenses such as depreciation and amortization. The modest revenue decline is attributed to commodity market fluctuations and cyclical pulse pricing dynamics inherent to the industry.

Stronger Cash Position Following Refinancing Completion

Cash balances increased to $6.6 million as of December 31, 2025, up from $4.6 million at the end of 2024, a 43% year-over-year improvement. This boost followed the company’s refinancing process, which incurred $2.8 million in one-time fees during fiscal 2025.

The enhanced liquidity, combined with disciplined cost management, indicates Eat Well’s efforts to strengthen its financial position as it aims to resume trading. Management highlighted that these financial metrics demonstrate the business is "trending in the right direction," especially regarding margin growth and cost control evident in FY2025 results.

Applications Filed to Revoke Cease Trade Order and Restart Trading

Eat Well submitted applications to the British Columbia Securities Commission and Ontario Securities Commission requesting full revocation of its Cease Trade Order and authorization to resume trading on the Canadian Securities Exchange. The company noted that completing all outstanding financial disclosure was a prerequisite for this process.

A Cease Trade Order restricts a company’s securities from trading on Canadian exchanges, typically due to failure to meet disclosure requirements. By fulfilling all filings and applying for revocation, Eat Well seeks to lift these trading restrictions. The timing and approval of this application remain subject to regulatory review.

Pulse Processing Operations Spanning North America

Eat Well operates pulse processing facilities in Saskatchewan, Canada, and Montana, USA, handling premium lentils, peas, and other pulse crops. Its products are distributed to customers in over 35 countries worldwide. The company has over 50 years of operational history and employs more than 50 staff across both countries.

Management highlighted recent supportive agricultural policies in the US and Canada. The US government has committed over $13 billion toward farmer support and food supply security, alongside the "Make America Healthy Again" initiative promoting clean, whole-food proteins like pulses. In Canada, pulses are prioritized for market diversification, with Farm Credit Canada pledging $5 billion in new agricultural capital by 2030.

Management Insights on Strategic Focus and Shareholder Relations

Daniel Brody, President, CEO, and Director of Eat Well, commented on the company’s strategic progress, stating that timely filing of the FY2025 audit and submitting the trading resumption application "is a significant step in getting the Company back on track." He emphasized the complete rebuild of the financial reporting system and full compliance with disclosure obligations.

Brody indicated these filings and the revocation application are foundational to normalizing operations and enhancing shareholder communication. He noted the company has divested non-core assets to focus on sustainable agriculture and food security. He also expressed gratitude for shareholder patience during the disclosure delays, stating, "To those shareholders: your patience has been appreciated, and it won't be forgotten."

Favorable Industry Trends and Policy Support Bolster Outlook

The announcement underscores increasing policy support for pulse processing and sustainable agriculture in North America. The US’s $13 billion commitment to farmer support and the Make America Healthy Again movement’s focus on whole-food proteins create positive "tailwinds" for Eat Well’s business model.

Similarly, Canada’s designation of pulses as a priority for market diversification, backed by Farm Credit Canada’s $5 billion capital deployment plan by 2030, further supports the company’s operating environment. Operating facilities in Saskatchewan and Montana with distribution across 35+ countries, Eat Well is positioned "directly in the path of these tailwinds," potentially benefiting as it seeks to normalize trading and reengage capital markets.

Investor Considerations and Future Outlook

Completing financial disclosures and applying to revoke the Cease Trade Order reduces regulatory uncertainty for investors. Shareholders have been unable to trade Eat Well shares on Canadian exchanges due to the order, limiting liquidity and price discovery. The revocation application marks progress toward restoring market access, though regulatory approval timing remains uncertain.

The disclosed financial results confirm ongoing pulse processing operations and revenue generation, despite current net losses. Improvements in gross profit margin and cash reserves may encourage investors, but the company’s path to sustained profitability and trading resumption outcomes remain to be seen. Investors should watch for updates from the British Columbia and Ontario Securities Commissions on the status of Eat Well’s Cease Trade Order revocation application.