Bill Kirk

Daniel Harriman

Todd Brooks

- **HF Foods Group Inc. (HFFG)** has entered into a **binding purchase agreement** to acquire a **distribution facility in Chicago, Illinois**, which it previously leased following its acquisition of Great Wall Seafood in 2022.  **[1680873_0001680873-25-000063_exhibit991-9292025pressrel.htm:0]** 
- This acquisition is part of the company's transformation plan, aiming to **improve operational efficiency, reduce facility costs**, and strengthen organic growth by enabling an early exit from the lease agreement and investment in additional capacity.  **[1680873_0001680873-25-000063_exhibit991-9292025pressrel.htm:0]** 
- The company expects this strategic development to **expand its presence in the Midwest region** and provide long-term benefits to local restaurant customers through improved operational control and enhanced logistics.  **[1680873_0001680873-25-000063_exhibit991-9292025pressrel.htm:0]** 
- The acquisition is supported by HF Foods' recently established **At-the-Market (ATM) equity offering program**, which is intended to provide **liquidity for capital expenditures and future acquisitions or business expansion**.  **[1680873_0001680873-25-000063_exhibit991-9292025pressrel.htm:0]**

HF Foods Group Announces Agreement to Acquire Chicago Distribution Facility

- HF Foods Group Inc. (HFFG) has entered into a **binding purchase agreement** to acquire a distribution facility located in **Chicago, Illinois**.  **[1680873_8ee7d14f4e734f23bfbbde965ef8460e_0]** 
- This acquisition is a strategic development expected to **reduce facility costs**, expand capacity, and support **long-term growth** by allowing HF Foods to exit its lease agreement early and improve operating expenses.  **[1680873_8ee7d14f4e734f23bfbbde965ef8460e_0]** 
- The company's recently established **At-the-Market (ATM) equity offering program** is expected to provide the financial flexibility and liquidity for this acquisition and future growth initiatives.  **[1680873_8ee7d14f4e734f23bfbbde965ef8460e_0]** 
- The facility, which HF Foods previously leased following its 2022 acquisition of Great Wall Seafood, is considered a key cornerstone of its Midwest distribution footprint and is expected to **improve operational efficiency** and drive consolidation opportunities.  **[1680873_8ee7d14f4e734f23bfbbde965ef8460e_0]**

- **HF Foods Group Inc.** has established an **At-The-Market (ATM) equity offering program**.  **[1680873_0001680873-25-000060_exhibit991-pressreleasexatm.htm:0]** 
- The program allows the company to sell shares of its common stock for aggregate gross proceeds of up to **$100 million**.  **[1680873_0001680873-25-000060_exhibit991-pressreleasexatm.htm:0]** **[1680873_0001680873-25-000060_hffg-20250925.htm:1]** **[1680873_0001680873-25-000060_exhibit51-akermanllpopinion.htm:1]** 
- The net proceeds are intended for **general corporate purposes**, which may include working capital, funding capital expenditures, and paying for possible acquisitions or business expansion.  **[1680873_0001680873-25-000060_exhibit991-pressreleasexatm.htm:0]** **[1680873_0001680873-25-000060_hffg-20250925.htm:1]** 
- **D.A. Davidson & Co.** and **Roth Capital Partners** will serve as sales agents for the ATM, with compensation up to **3.0%** of the gross sales price.  **[1680873_0001680873-25-000060_exhibit991-pressreleasexatm.htm:0]** **[1680873_0001680873-25-000060_hffg-20250925.htm:1]**

HF Foods Group Inc. Establishes $100 Million ATM Equity Offering Program

- HF Foods Group reported **$1.2 billion in Net Revenue** and **$42.0 million in Adjusted EBITDA** for 2024, with Adjusted EBITDA increasing **21.6% year-over-year**.  **[1680873_2147814:2]** 
- The company is positioned as the **#1 specialty food distributor to Asian restaurants**, covering approximately **95% of the contiguous U.S.** and serving over **15,000 independent restaurant customers**.  **[1680873_2147814:2]** **[1680873_2147814:4]** **[1680873_2147814:5]** 
- HF Foods Group has outlined a clear strategy to grow revenues and expand margins through **cross-sell opportunities, expansion in core markets, and an upcoming e-commerce platform**, supported by operational initiatives like consolidating procurement and optimizing its transportation network.  **[1680873_2147814:8]** 
- The company projects organic revenue of **$1.4 billion to $1.5 billion+** and organic Adjusted EBITDA of **$60 million to $75 million+** over the next 3-5 years, with an additional **$120 million to $150 million** in inorganic revenue opportunity.  **[1680873_2147814:10]** 
- Recent leadership changes include **Felix Lin appointed CEO in January 2025** and **Cindy Yao appointed CFO in May 2024**; an **SEC investigation into former executives was fully resolved in June 2024**.  **[1680873_2147814:0]** **[1680873_2147814:10]**

HF Foods Group (HFFG)