GABY Announces Third Quarter 2019 Financial Results

• Q3 '19 revenue of $6.2MM, 147% sequential revenue growth over Q2 '19, 2,035% increase over Q3 '18

SANTA ROSA, CA and CALGARY, AB / ACCESSWIRE / November 29, 2019 / GABY Inc. (formerly Gabriella's Kitchen Inc.) ("GABY" or the "Company") GABY GABLF, a U.S.-focused CPG company operating in the regulated cannabis sector in California as well as the mainstream grocery channel nationally, today announced financial results for the three-month period ended September 30, 2019. GABY's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). All financial information presented in this release is in Canadian dollars ($), unless otherwise noted.

"In Q3 '19 we made significant progress on building out our supply chain infrastructure to support both our inhouse and 3^rd party distributed brands, driving revenue growth of 2,035% from Q3 '18 and 147% from Q2 '19," said Margot Micallef, Founder, and CEO of GABY. "This growth is largely driven by the expansion of our third-party brand services, including our proven strength in procurement, co-packing and white labeling services, and our strong growth in our customer and distribution network. Since the start of 2019 we've more than doubled the number of dispensaries we sell into - a testament to the strength of our sales team. These 218 dispensaries (vs 82 at the start of the year) represent approximately 30% of the dispensaries in California."

Ms. Micallef continued, "As we look forward to 2020, we are focused on building a nimbler, higher-margin business. Over the next three quarters we will optimize our portfolio of 3^rd party brands and grow sales of inhouse brands to drive gross margin, intelligently reduce SG&A, and continue to opportunistically pursue M&A that compliments GABY's core strengths and our commitment to shareholders to reach profitability in 2020."

Financial Highlights for the Third Quarter Ended September 30, 2019

The following are financial highlights of GABY's operating results for the three months ended September 30, 2019, compared to the three months ended September 30, 2018:

• Revenue was $6.2 million as compared to $289,092
• Gross loss was $45,008 as compared to $173,518
• Operating expenses were $3.3 million as compared to $1.3 million

The following is a summary of key balance sheet items on September 30, 2019, compared to December 31, 2018:

• Cash was $2.3 million as compared to $53,658
• Total assets of $34.6 million as compared to $4.6 million
• Total working capital¹ of $5.0 million as compared to ($319,112)
• Total debt excluding lease obligations of $1.6 million as compared to nil.

Corporate Highlights

• On July 22, 2019, GABY entered into a definitive agreement for the acquisition of Lulu's Chocolates, a California-based manufacturer of CBD and THC infused chocolates
• On July 25, 2019, GABY announced the acquisition of a 25,000 sq. ft. state-of-the-art production facility enabling it to consolidate in due course all its current operating segments (manufacturing and distribution) and move into cultivation
• As of August 20, 2019, Lulu's Chocolates CBD infused chocolates are now sold in over 300 mainstream retail locations in California
• On September 5, 2019, the Company announced a name change to GABY Inc.
• On October 2, 2019, GABY announced that it entered into a definitive agreement for the acquisition of premium organic CBD brand 2Rise Naturals

About GABY INC.

GABY is a U.S.-focused, consumer packaged goods company operating a family of brands in the cannabis industry and in the mainstream grocery channel. Through its subsidiaries GABY indirectly holds a number of licenses and permits issued by the California Department of Health, the California Bureau of Cannabis Control, the California Department of Food and Agriculture and the County of Sonoma respectively, including manufacturing, distribution licenses and a pending cultivation license. With these licenses and permits to operate in the cannabis channel, and its existing infrastructure of major retailers and an extensive broker and distribution network in the mainstream channel, GABY has successfully brought a number of its proprietary, acquired and third-party brands to market in both the licensed and mainstream market.

Margot and her sister Gabriella co-founded GABY after Gabriella received a dire cancer diagnosis which spurred the sisters to prolong Gabriella's life through a holistic approach to health. Today, GABY is a wellness company with a diverse range of products that use cannabis, hemp and hemp derived cannabinoids to address a variety of dietary and health concerns. Although Gabriella ultimately passed away from her illness, she lived exponentially longer than doctors predicted. Her memory and passion live on through GABY's mission: to empower people to live healthy lives without compromise.

GABY's shares trade on the CSE under the symbol "GABY" and on the OTCQB under the symbol "GABLF". For more information, visit www.GABYInc.com

For further inquiries, please contact:

General

Margot Micallef, Founder & CEO or Investor Relations at IR@gabriellas-kitchen.com or 800-674-2239.

Investors
Mark Kuindersma, CFA
LodeRock Advisors Inc.
mark.kuindersma@loderockadvisors.com
416-465-6931

Media
Colin Trethewey, APR
colin@prmedianow.com

Disclaimer and Forward-Looking Information

The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward looking statements include, but are not limited to, the anticipated closing of additional acquisitions by the Company, including but not limited to the acquisition of Raw Chocolate Alchemy, LLC (Lulu's Chocolate), 2Rise Naturals, LLC (2Rise Naturals) and other potential acquisition(s), the continued growth and expansion of the Company's operations, the receipt of regulatory approvals, including the approval of the CSE, expectations that licenses applied for will be obtained, potential future legalization of adult-use and/or medical cannabis under United States ("U.S.") federal law, expectations of market size and growth in the U.S., California and such other states in which the Company has expressed desire to operate in, expectations for other economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry general, and other events or conditions that may occur in the future. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. You should not place undue reliance on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Each of KJM Data and Research, Inc., and Sonoma Pacific Distribution, Inc. are subsidiaries of GABY. Each of these subsidiaries hold cannabis licenses in the State of California. Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale and possession of medical cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. Cannabis is legal in the State of California however cannabis remains illegal under U.S. federal laws. Notwithstanding the permissive regulatory environment of cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. federal law. To the knowledge of the Company, the businesses operated by each of GABY's subsidiaries are conducted in a manner consistent with the State law of California and are in compliance with regulatory and licensing requirements applicable in the State of California. However, readers should be aware that strict compliance with State laws with respect to cannabis will neither absolve GABY, or its subsidiaries of liability under U.S. federal law, nor will it provide a defense to any federal proceeding in the U.S. which could be brought against any of GABY, or its subsidiaries. Any such proceedings brought against GABY, or its subsidiaries may materially adversely affect the Company's operations and financial performance generally in the U.S. market specifically.

For additional details please refer to the Company's management discussion and analysis (MD&A) for Q3 ended September 30, 2019, a copy of which can be found under the Company's profile on SEDAR at www.sedar.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.