Dane Creek Capital Corp. Announces One Acquisition and Two Strategic Investments in Frozen Raw Pet Food Manufacturers

Merchant bank with pet industry focus to become first company in Canada with multiple manufacturing interests in growing frozen raw pet food category

Mississauga, Ontario – September 14, 2017. Dane Creek Capital Corp. (‘DCCC’ of the ‘Company’), a merchant bank with a focus on the pet industry, is pleased to announce it has agreed to acquire 100% of Mountain Dog Enterprises Inc. (‘Mountain Dog’), a leading manufacturer of frozen raw pet food based in Edmonton, Alberta; up to 49% of Totally Raw Natural Dog Food Inc., a leading manufacturer of frozen raw pet food based in Dartmouth, Nova Scotia; and 40% of a leading manufacturer of frozen raw pet food based in southern Ontario. The combined transactions will make Dane Creek the leader in Canada in the rapidly growing frozen raw pet food category and the only corporation with manufacturing interests in multiple provinces.

Mountain Dog is one of the largest manufacturers of frozen raw pet food in Canada and the onlymanufacturer in the country with HACCP certification. Founded in 2000 by Dean Ricard, its products are manufactured out of a single facility in Edmonton, Alberta and sold mainly through pet specialty retailers throughout Canada. Ricard will continue to act as President and CEO of Mountain Dog post-completion. The purchase price represents approximately 0.5 times Mountain Dog’s expected 2017 revenue. The transaction is subject to customary due diligence and scheduled to close before the end of September. The acquisition will mark DCCC’s first investment in the Province of Alberta.

Totally Raw is the leading brand of frozen raw pet food in Atlantic Canada with a unique business model that includes its own retail store fronts. Founded in 2003 by Karen Campbell and Doug Malloy, its products are manufactured out of a single facility in Burnside, Nova Scotia and sold through both pet specialty retailers and its stores. Totally Raw also recently began distributing its product in Quebec and Ontario. Campbell will continue to act as President of Totally Raw and Malloy will act as Director of Operations. The transaction is subject to customary due diligence and is expected to close on or before the end of October. No other details were announced. The deal will mark the Company’s fourth direct investment in the Province of Nova Scotia.

DCCC’s third investment is in one of the fastest growing frozen raw pet food manufacturers in Canada and a leading brand in southern Ontario. Its products are manufactured out of a single facility and sold mainly through pet specialty retailers. The transaction is subject to customary due diligence and is expected to close on or before the end of October. The company expects to announce further details in the coming weeks. The deal will mark DCCC’s second investment in the Province of Ontario.

With the closing of these transactions DCCC will be the first company in Canada with interests in multiple frozen raw pet food manufacturers, a position the Company intends to strengthen through further acquisitions and/or investments in the frozen raw category in both Canada and the United States over the coming months. Combined revenues for all three companies in 2017 are projected to exceed $5.4 million. DCCC believes given the nature of the frozen raw category, which requires that product remain frozen during transportation, changes in the alignment of food companies in the mass grocery and pet specialty retail category, and the concentration in pet specialty retail ownership and alterations in traditional distribution models, access to a national network of manufacturing facilities with co-packing potential for all of its brands will give it and its portfolio companies in the space a strategic advantage over other market participants. Its investments in the frozen raw category will be held via a wholly owned subsidiary.

‘We are very pleased to be making this announcement,’ said Glen Tennison, President and CFO of DCCC. ‘This is without a doubt the biggest announcement we have made to date and demonstrates our commitment to supporting innovators in the companion animal industry. We believe our investment model will allow them to continue to grow their businesses to the benefit of all involved. These transactions also speak to our commitment to investing in newer, rapidly growing categories in the companion animal sector which we believe are well placed to take advantage of current trends in pet ownership.’