Page 1

Cannara Biotech Delivers Strong Q2 2021 Results Significant second quarter revenue generation of $ 1.2 million and gross profit increase to $ 2.1 million showcases Cannara's positive trajectory MONTREAL , Quebec , April 28 , 2021 / CNW / - Cannara Biotech Inc. ( " Cannara " or the " Company " ) ( TSXV : LOVE ) ( OTCQB : LOVFF ) ( FRA : 8CB ) , a vertically integrated producer of indoor cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec , today announced its operating and financial results for the three and six - month periods ended February 28 , 2021 and February 29 , 2020. All dollar amounts are expressed in Canadian dollars unless otherwise noted . Second Quarter Highlights Received amended sales licence from Health Canada to allow sales to provincial distributors • Successfully launched its three flagship brands - Tribal , Nugz and Orchid CBD - and completed its first retail shipment through the Société québécoise du cannabis ( SQDC ) on February 25 , 2021 and March 4 , 2021 • Total cannabis sales of $ 1.22 million ( net of excise tax ) in Q2 2021 compared to nil in the same period of the prior year • Gross profit increased from $ 470 thousand in Q2 2020 to $ 2.1 million in Q2 2021 • Operating costs decreased by 33 % from Q2 2020 to Q2 2021 • Secured 100 % occupancy of the Company's Farnham Facility • Completed two monthly shipments totalling 399.31 kg of dried cannabis to a wholesale partner under its one - year supply agreement which commenced January 1 , 2021 Highlights Subsequent to Quarter End • Transitioned trading activity from the Canadian Stock Exchange ( CSE ) to the TSX Venture ( TSXV ) on April 8 , 2021 under stock symbol LOVE.V for increased investor awareness • Signed significant one - time wholesale agreements to supply approximately 1,400 kg of cannabis for a total value of $ 1,265,000 • Achieved first complete month ( March 2021 ) of net revenue generation from retail and wholesale channels of $ 1.8 million • Granted an aggregate total of 110,000 stock options to certain employees at an exercise price of $ 0.18 per common share , subject to certain vesting conditions • Extended maturity date by an additional year on one of the two mortgages CEO and CFO Commentaries " 2021 has been a transformational year for our business thus far , marked by significant milestones and a strong balance sheet . From receiving our amended sales licence from Health Canada to launching our brand portfolio through the SQDC , we are making meaningful strides to capturing market share in Quebec while positioning ourselves for long - term growth and success across Canada , " said Zohar Krivorot , President & Chief Executive Officer of Cannara Biotech Inc. " Our listing on the TSXV was also a major milestone of our progression that will enhance our profile as a leading producer of premium - grade cannabis products , crafted with the highest - quality genetics and at a price point that Canadians deserve . "