JK Just Kitchen Holdings Corp

TSXV: JK   OTCQB: JKHCF   FRA: 68Z

The Company Will Also License its Signature Food Brands and Proprietary
JKOS Software to Third Parties under a New Turnkey Offering

VANCOUVER, BC, March 17, 2022 /CNW/ - Just Kitchen Holdings Corp. ("JustKitchen" or the "Company") (TSXV: JK) (OTCQB: JKHCF) (FRA: 68Z), an operator of ghost kitchens specializing in the development of delivery-only food brands, is pleased to announce that it has entered into a commercial arrangement (the "Arrangement") to expand its suite of business-to-business ("B2B") services to Hsinchu Science Park ("HSP"), located in the East District of Hsinchu City, Taiwan. HSP is a vast professional and industrial area that houses over 530 companies employing more than 152,000 people.¹ JustKitchen will be the first ghost kitchen operator to serve employees in HSP as delivery drivers are not permitted to enter the area.

Pursuant to the terms of the Arrangement, JustKitchen will work with a large food service contractor to provide JustKitchen-branded meals to employees and their guests at HSP during business hours. As previously announced on November 25, 2021, the Company operates a ghost kitchen location within the nearby Hotel Indigo Hsinchu Science Park. JustKitchen is also in the process of pursuing other B2B opportunities within HSP.

Licensing of JKOS Software and In-House Brands to Third-Party Operators

The Company also announces that it has begun licensing the rights to its proprietary food brands ("Proprietary Brand License") to qualified third-party operators of commercial kitchens across Taiwan and and Hong Kong. Since inception, many of JustKitchen's wholly owned food brands have gained a loyal following. Granting Proprietary Brand Licenses to proven counterparties is expected to enable the Company to more quickly and cost effectively scale up its brand exposure and sales output without having to invest in additional kitchens, staff or other infrastructure.

Third parties are also required to implement the Company's vertically integrated JKOS software, which promotes operational success while enabling JustKitchen to retain, analyze and monitor all applicable data under each licensing arrangement. To reduce third-party risk, JustKitchen is seeking out prospective counterparties and performing due diligence on their commercial kitchens, operating practices, and levels of output.

Under the terms and conditions of a Proprietary Brand License, a qualified third party currently operating a commercial kitchen, such as in an underutilized restaurant, hotel or conference facility, can add one or more of JustKitchen's delivery-only food brands on a turnkey basis and quickly become part of the cloud kitchen industry. This offers a counterparty the ability to generate incremental revenue from its existing assets, with a minimal up-front capital outlay and seamless integration with their current operations.

Management Commentary

"Providing JK's meals and services to the people at HSP, which is the home of Taiwan's flagship semiconductor industry that ranks second in the world by revenue and serves almost all of the world's tech giants, is a great opportunity for JustKitchen to showcase its brands to even more consumers and businesses. Notable corporate tenants of HSP include Taiwan Semiconductor Manufacturing Company; MediaTek, which is the world's second-largest mobile chip developer; United Microelectronics Corp. which is the world's third-largest contract chipmaker; as well as computer-maker Acer," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen. "Our other new initiative to license our proprietary food brands and JKOS software platform to third parties in a turnkey way unlocks the potential for incremental brand equity and even greater scalability to be earned by our most popular in-house menus," added Mr. Chen.

ABOUT JUSTKITCHEN

JustKitchen is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in Taiwan and Hong Kong with plans to expand operations to other Asian countries. JustKitchen uniquely utilizes a hub-and-spoke operating model, which features advanced food preparation taking place at larger hub kitchens and final meal preparation taking place at smaller spoke kitchens located in areas with higher population densities. The Company combines this operating model with online and mobile application-based food ordering fulfilled by third-party delivery companies, to minimize capital investments and operating expenses and reach more customers in underserved markets. The Company's other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add select grocery items to meals ordered through JustKitchen.

For more information about the Company, please visit investors.justkitchen.com. JustKitchen's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com.

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

FORWARD-LOOKING STATEMENTS

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur including but not limited to the Company's comments regarding it working with a large food service contractor to help fulfill the terms of its contract by providing JustKitchen-branded meals to employees and their guests at HSP during business hours; pursuing other B2B opportunities within HSP based on the Arrangement having acted as a beachhead to foster similar dialogues with other third parties; and licensing the rights to its proprietary food brands to qualified third-party operators of commercial kitchens across Taiwan. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, including those risk factors identified in the Company's prospectus dated March 26, 2021, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Endnotes

SOURCE Just Kitchen Holdings Corp.