Toronto, Ontario--(Newsfile Corp. - February 12, 2026) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leader in acquiring and scaling emerging food brands, is pleased to announce that, further to its press release dated December 22, 2025 (the "Prior Release"), the Company has successfully executed a definitive agreement (the "Definitive Agreement") in connection with the previously announced sale of Holy Crap Foods, its cereal and oatmeal brand, for $1,000,000 ...

Core Insights - Happy Belly Food Group Inc. has entered into a binding letter of intent to sell its cereal and oatmeal brand, Holy Crap Foods, for $1,000,000 CAD in cash plus working capital adjustments [1][2] - The sale is part of the company's strategy to focus on its core Quick Service Restaurant (QSR) businesses, which are experiencing strong growth in Canada and will soon expand into the United States [2][3] - The transaction will provide Happy Belly with a non-dilutive cash influx of $1 million, which will be reinvested into the QSR division to accelerate the development of new restaurant locations [2][3] Company Strategy - The company aims to concentrate its investments on the QSR segment, emphasizing a focus on Return on Invested Capital (ROIC) and monetizing assets at attractive valuations when opportunities arise [3] - Happy Belly has demonstrated its ability to build, scale, and franchise high-performing brands, including Rosie's Burgers, Heal Wellness, Via Cibo, iQ Food Co., and Yolks Breakfast [2][3] Company Overview - Happy Belly Food Group Inc. is recognized as a leader in acquiring and scaling emerging food brands across Canada [5]

Core Insights - Happy Belly Food Group achieved its 13th consecutive record quarter with a 114% increase in system sales compared to the same quarter last year, reaching $16.2 million [2][4] - The company reported total revenues of $5.7 million in Q2 2025, a 155% increase year-over-year, driven by organic growth and acquisitions [3][4] - Happy Belly opened 12 new restaurant locations in Q2 2025 and has a total of 62 operating restaurants, up 138% from the previous year [3][4] Financial Performance - System-wide sales reached $16.2 million in Q2 2025, up from $7.6 million in Q2 2024, reflecting a 114% increase [4] - Total operating revenues, including vendor rebates and interest income, amounted to $5.7 million in Q2 2025, compared to $2.2 million in Q2 2024, marking a 155% increase [4] - Adjusted EBITDA for Q2 2025 was $0.6 million, representing a margin of 9.9%, a significant improvement from a negative $(0.1) million in the same quarter last year [4][11] Growth Strategy - The company continues to focus on both organic growth and accretive acquisitions, with plans to expand its restaurant portfolio further [3][4] - Happy Belly's management emphasizes a disciplined approach to growth, focusing on the "3P's": People, Product, and Process [3] - The company has signed multiple franchise agreements and development deals across Canada, indicating strong expansion plans [6][10] Operational Highlights - In Q2 2025, Happy Belly generated $0.7 million in cash flow from operating activities and invested $1.1 million in property and equipment [7] - The company added 12 new restaurants during Q2 2025, with further expansions planned in Q3 [7] - As of June 30, 2025, Happy Belly's net working capital was $2.7 million, and total cash and cash equivalents stood at $3.0 million [4]