AgriCann Solutions Acquires Newline Ventures Inc.

Vancouver, British Columbia--(Newsfile Corp. - October 23, 2023) - AgriCann Solutions Corp. (the "Company" or "AgriCann"), is pleased to announce completion of the acquisition of 100% of Newline Ventures Inc. ("Newline"), the subject of the letter of intent dated February 17, 2023, the unanimous approval by votes cast at AgriCann's April 17, 2023 held AGM, and the definitive Share Exchange Agreement ("SEA") announced on July 28, 2023.

The acquisition of Newline creates a new control person of the Company and establishes a Long-Term Incentive Plan ("LTIP Awards") (refer to the Company's Information Circular dated March 13, 2023 filed under the Company's profile on SEDAR+). The closing of the SEA completes AgriCann's corporate expansion into an operational facility with superior licensing, logistics and expansion capabilities.

SEA Terms
In consideration for the acquisition of 100% of the shares of Newline, AgriCann paid $165,000 in certified funds and issued a total of 38,619,511 common shares ("Shares") at a price of $0.10 per Share, of which 37,825,182 Shares (collectively the "Consideration Shares") were issued pursuant to the SEA with Newline, and 794,329 Shares were issued pursuant to a finder's fee agreement to an independent consultant of the Company.

The Consideration Shares have been deposited with an escrow agent on the closing date pursuant to the terms of escrow and voluntary pooling agreements. Newline shareholders committed 11,347,555 Consideration Shares to the establishment of AgriCann's new LTIP Awards program, in which key members of AgriCann's executive team will participate, subject to the terms of 36-month escrow and overlying pooling agreements that include certain performance criteria.

Following last weeks closing of the $1,034,236 private placement and the closing of the SEA, the issued & outstanding capital of the Company is 105,259,554 common shares.

Rationale
The acquisition of Newline expands the Company's strategic initiatives and business model with a focus on launching innovative flower products through agreements with cannabis cultivators throughout Canada. Through this initiative the Company expects to provide exceptional brands of premium cannabis product, highly desirable to discerning consumers, by ensuring a constant secured supply, thereby leveraging the Company's partners' existing infrastructure. This provides a path to scalability, increased market share, and lower operating costs within each of the partner's facilities. Some of the key benefits include the following:

• Newline is approved by Health Canada with a medical sales, micro processing, and micro cultivation license. This license enhances the flexibility in AgriCann's operations, enabling AgriCann to offer comprehensive services from seed-to-sale by driving additional value to our existing and prospective customer base, and allows AgriCann to penetrate additional markets through greater control of the cannabis supply chain;
• The Newline facility was built to the specifications of a Standard Cultivator and Standard Processor, and application has been made to amend NewLine's license stack from Micro to Standard. This crucial upgrade eliminates any production capacity limitations as per Health Canada regulations, enabling the Company to accommodate significant volumes and strengthen our operational capabilities;
• Facilitates AgriCann's ability to take advantage of British Columbia's recently passed legislation permitting direct delivery of products to retail dispensaries through the establishment of a wholesale platform that connects craft cultivators with our network of retailers, thereby managing the supply chain to facilitate distribution of consumer-packaged cannabis;
• Immediately enables AgriCann to sell fresh and dried cannabis to (a) registered patients and (b) provincial/territorial authorised distributors/retailers;
• Immediately adds the ability to process flower sourced from other Licenced Producers and the processing of dried flower and/or pre-roll product SKU's, allowing AgriCann to bring to market owned premium brands and more fully collaborate with partners; and
• The building layout of the Newline facility is conducive to scalability and growth, providing an ideal platform upon which to build out AgriCann's expansion plans, giving AgriCann the operational capability to increase production capacity as needed.

About AgriCann Solutions Corp.

AgriCann operates wholly owned subsidiary Craft Nurseries Canada Ltd., a full-service Health Canada licensed cannabis nursery located in Lake Country, British Columbia, and has completed the acquisition of Newline Ventures Inc., a Health Canada licensed facility designed to accommodate AgriCann's current and future expansion plans, located in nearby Vernon, British Columbia.

AgriCann supports craft cultivators through innovative marketing initiatives, creating demand with premium genetics and strong consumer branding, and facilitates the distribution of consumer-packaged goods through a scalable online wholesale platform and logistics model. By providing cultivating partners with access to superior genetics, starting materials, and cultivation support, we ensure quality control of finished flower as a trusted partner enabling effective and strategic competition in today's market. AgriCann provides a logistics solution by helping micro-batch craft cultivators build a viable business, getting their products to market efficiently and thereby securing a reliable supply of premium craft cannabis products to domestic and global markets.

AgriCann Solutions' website: https://agricannsolutions.com/

Craft Nurseries' website: https://www.craftnurseries.com/

ON BEHALF OF AGRICANN SOLUTIONS CORP.

(signed) "Rob van Santen"
Executive Chairman

For further information, please contact:

Adam Sancewicz
Chief Executive Officer
Telephone: +1.778.231.5431

Cautionary Note Regarding Forward-Looking Statements

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects" or "does not expect", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by applicable law.

AgriCann Solutions Corp.
400-1771 Robson Street, Vancouver, BC, Canada V6G1C9
Tel. +1.604.608.1999 ~ Fax. +1.778.379.9990

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/184940