General Assembly Pizza Secures Master Production Facility to Meet Growing Consumer Demand

Daily Production to Increase by up to 2,400% as Revenues and Demand Ramp

TORONTO--()--General Assembly Holdings Limited (TSXV: GA) (“GA Pizza” or the “Company”) is pleased to announce that to meet growing consumer demand and scale production of its naturally leavened frozen pizzas, it has signed a lease and taken possession of a 42,060 square foot master production facility in Vaughan, Ontario. GA Pizza’s first dedicated production facility will undergo a full renovation and phased build-out of a production line, including an initial line that is expected to increase daily production capacity by 150% to 5,000 units per day by the end of Q3 2021 and ramping to 10,000 units a day by year end. When fully operational in 2022, the facility will have an expected production capacity of 50,000 units per day—a 2,400% increase over current capacity levels. This new capacity should produce monthly output of approximately 1 million units of GA Pizza’s par-baked, naturally leavened freezer-to-table pizzas and will meet the rapid uptake in consumer demand.

Securing the master production facility was a key strategic priority for the Company in Q3. In addition to production, refrigerated storage, retail warehousing and wholesale distribution, the facility will also house office space and GA Pizza’s R&D hub, The Dough Lab. Shifting consumer packaged goods (“CPG”) production to the master production facility enables GA Pizza to ramp up restaurant operations—which have been dormant throughout Q2 to allow for increased CPG production capacity—and reopen its flagship location for dine-in and off-premise in Q3.

“In our current model—producing our frozen pizzas from our flagship restaurant—capacity has been constrained with demand greatly outpacing supply, so the timing couldn’t be better. The master production facility will allow GA Pizza to scale production significantly and meet our growing wholesale and consumer demand—not to mention the benefits of operating at scale and re-activating our restaurant and off-premise channels. Coming off a record-setting Q2 with frozen pizza sales up 70% over Q1, our production facility will expand our wholesale partnerships across the country, as we continue to meet our pizza lovers wherever they are,” said Ali Khan Lalani, Chief Executive Officer and Founder. The company anticipates that more than 50% of GA Pizza's future production will be allocated to retail and wholesale sales, compared to 20% year-to-date.

The Company has signed a seven-year lease with partner Pure Industrial, which owns and manages over 22 million square feet of industrial real estate across Canada. As one of Canada’s leading providers of real estate, Pure Industrial actively partners with promising Canadian businesses to support their growth.

About GA Pizza

GA Pizza began its life as a fast-casual pizza restaurant in the heart of Toronto. Three years later, we also offer a freezer-to-table consumer packaged goods line, and a groundbreaking direct-to-consumer platform: a pizza subscription (gapizzaclub.com) and a gifting service (give.gapizza.com). Our ambition? Make delicious pizzas available to everyone, everywhere. We’re always working to take pizza to new heights—from showing the world that better pizza is possible, to finding new spaces and places to deliver unrivaled pizza experiences. Find us at the grocery store or visit gapizza.com.

GA Pizza media assets available for download.

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

Forward-Looking Information

This press release contains statements which constitute “forward-looking information” or “forward-looking statements” (together “forward-looking information”) within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding anticipated increases to the Company's production capacity at the master facility and the Company's growth strategy.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect the Company’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among key factors and risks that could cause actual results to differ materially from those projected in the forward-looking information may include, without limitation, the following: there being no market for the securities of the Company; the Company’s limited operating history; global economic risk; COVID-19’s impact on the Company; the general economic environment; cybersecurity risks; financial projections may prove materially inaccurate or incorrect; the Company may experience difficulties to forecast sales; general competition in the industry from other companies; management of growth-related risks; reliance on management; risks relating to insurance; changes in food and supply costs could adversely affect profitability and ultimately our results of operations; our business could be adversely affected by increased labour costs or difficulties in finding suitable employees; changes in customer tastes and preferences, spending patterns and demographic trends could cause sales to decline; changes in nutrition and food regulation; failure to establish our master production facility; failure to expand production capacity; disruption at our facilities; government regulation of the food industry creating risks and challenges; risk associated with food safety and consumer health; changes in internet and social media search algorithms; risks associated with leasing commercial and retail space; third party reliance for shipping and payment processing; environmental laws; we may not persuade customers of the benefits of paying our prices for higher-quality food; our marketing and advertising strategies may not be successful, which could adversely impact our business; requirements for further financing; the Company may prioritize customer growth and engagement and the customer experience over short-term financial results. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Contacts

Media
Tat Read, Communications Director, GA Pizza
tat@gapizza.com

Investor Relations
Glen Akselrod, Bristol Capital
invest@gapizza.com

Ali Khan Lalani, Chief Executive Officer & Founder
(416) 583-5571

Social Media Profiles

Contacts

Media
Tat Read, Communications Director, GA Pizza
tat@gapizza.com

Investor Relations
Glen Akselrod, Bristol Capital
invest@gapizza.com

Ali Khan Lalani, Chief Executive Officer & Founder
(416) 583-5571