Mr. Bernie Yeung reports

ATLAS GLOBAL BRANDS PROVIDES UPDATE ON DELAY IN FILING ANNUAL AND INTERIM FINANCIAL STATEMENTS

As anticipated, due to the complexity of accounting for Atlas Global Brands Inc.'s tripartite and multijurisdictional business combination completed on Dec. 30, 2022, and subsequent acquisitions, Atlas Global did not file its audited annual consolidated financial statements and related management's discussion and analysis and certifications for the financial year ended March 31, 2023, by July 31, 2023, as required by National Policy 51-102 (Continuous Disclosure Obligations). As a result, effective Aug. 8, 2023, the Ontario Securities Commission, as the principal regulator, has issued a failure-to-file cease trade order.

The FFCTO will be revoked automatically upon the company making the required annual filings. The company continues to work diligently to complete the required annual filings as soon as possible.

The FFCTO prohibits the trading by any person of any securities of the company in each jurisdiction in Canada in which the company is a reporting issuer and in which Multilateral Instrument 11-103 (Failure-to-File Cease Trade Orders in Multiple Jurisdictions) applies, for as long as the FFCTO remains in effect.

Despite the FFCTO, a beneficial securityholder of the company who is not, and was not as at Aug. 8, 2023, an insider or control person of the company may sell securities of the company acquired before Aug. 8, 2023, if both of the following apply: (a) the sale is made through a foreign organized regulated market, as defined in Section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.

The FFCTO does not otherwise affect the company's business operations, and the company continues to focus on executing its business plan to leverage its European Union good manufacturing practice certifications to increase its share of high-margin jurisdictions.

As more particularly set out in the news release filed on July 14, 2023, the company previously applied for a management cease trade order pursuant to National Policy 12-203 (Management Cease Trade Orders) of the Canadian Securities Administrators in respect of its required annual filings, and its interim financial report and related management's discussion and analysis and certifications for the interim period ended June 30, 2023, due Aug. 29, 2023. The OSC, however, did not view the company as meeting all the eligibility criteria for the MCTO set out in NP 12-203, in particular, the requirement for an active, liquid market for its common shares within the meaning of NP 12-203.

The company is also working diligently to complete its required interim filings by Aug. 29, 2023, failing which a separate, but similar, FFCTO will likely be issued by the OSC.

About Atlas Global Brands Inc.

Atlas Global is a global cannabis company operating in Canada and Israel with expertise across the cannabis value chain, including cultivation, manufacturing, marketing and distribution. Atlas Global currently distributes to seven countries: Australia, Canada, Denmark, Germany, Israel, Norway and the United Kingdom. In addition to a differentiated product mix, Atlas Global operates two licensed cannabis facilities: (1) an EU GMP facility in Chatham, Ont.; and (2) the facility in Stratford, Ont., governed by the good agricultural and collecting practice set out by the IMCA in Directive 151. Atlas Global also has a majority interest in three medical pharmacies in Israel and entered into binding agreements to acquire a majority interest in a trading house and six additional medical cannabis pharmacies in Israel.

We seek Safe Harbor.