Mr. Michael Mills reports

BODY AND MIND ANNOUNCES Q3 2023 FINANCIAL RESULTS

Body and Mind Inc. has released financial results for the third quarter of fiscal year 2023 ended April 30, 2023, and has provided shareholders with an operational update. All financial information is provided in U.S. dollars unless otherwise indicated.

Q3 FY 2023 (ended April 30, 2023) and subsequent highlights:

• Completed construction, approvals and opened the Markham, Ill., dispensary. This is the first of two dispensary projects in the Illinois market. The Markham dispensary is located within the largest retail mall in Markham, Ill., which has average daily traffic counts of more than 400,000 cars per day within a mile of the project location and held a grand opening with local and state politicians on May 27, 2023.
• Advanced New Jersey state licence application in conjunction with Body and Mind Dispensary N.J. Inc., formerly known as CraftedPlants N.J. Inc. Received formal planning committee approval on the site plan, commenced design and architectural plans for the New Jersey location, and working with state and local authorities to complete the state licence.
• Divested the Michigan Body and Mind dispensary to focus time and energy on the Illinois and New Jersey markets.
• Commenced product sales of Pretzel Bites, Turbo and vaporization cartridge products in Ohio from the Ohio processing operation.

Management commentary

"Our most recent quarter reflects a 46-per-cent improvement in adjusted EBITDA over last quarter as we continue to streamline our operations and expand into new markets. During the quarter, our team has focused on cost reductions and development of the new Illinois and New Jersey dispensaries," stated Michael Mills, chief executive officer of Body and Mind. "We believe the Chicagoland market remains underserved by dispensaries and the grand opening of the Markham, Ill., dispensary was a significant milestone for the company. We continue to work with state and local licensing authorities to advance current projects and also to apply for licences in new jurisdictions."

Q2 FY 2023 financial highlights:

• Revenues for Q3 FY 2023 were $7.3-million, a slight decrease from Q2 FY 2023 revenues of $7.7-million.
• Gross profit of $2.07-million for Q3 FY 2023 as compared with $2.26-million for Q2 FY 2023.
• Q3 FY 2023 net operating loss was $1.6-million as compared with net operating loss of $1.8-million in Q2 FY 2023. Net operating income was primarily impacted by continued business development expenses related to Illinois and New Jersey, new licence applications, and new operation start-up expenses.
• Q3 FY 2023 net loss was $3.6-million (or basic and diluted loss per share of two cents) as compared with Q2 FY 2023 with a net loss of $2.7-million (or basic and diluted loss per share of two cents). Net loss in Q3 FY 2023 included non-cash charges of $900,000 for loss on impairment and $200,000 for stock-based compensation.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $700,000 for Q3 FY 2023 compared with a $1.3-million loss for Q2 FY 2023, an adjusted EBITDA improvement of 46 per cent over the prior quarter.
• Total current assets were $7.2-million, total assets were $32.6-million, total current liabilities were $10.8-million and total liabilities were $31-million at April 30, 2023.

The company had 146,636,974 common shares outstanding as of April 30, 2023.

For further details, please see the company's recent Form 10-Q filing on EDGAR, and the interim financial statements filed on SEDAR.

About Body and Mind Inc.

Body and Mind is an operations-focused cannabis company with active retail operations in Ohio, Arkansas, Illinois and California, pending retail operations in Illinois and New Jersey, and craft cultivation and/or processing operations in Nevada, Ohio and Arkansas. The company works daily to increase its market share through delighting customers while also continuing to hone its operational efficiencies to drive profits. Body and Mind is primarily guided by the metric of return on investment. Currently, it believes the most significant return on investment projects in front of it are successful retail cannabis store launches in Illinois and New Jersey, which augment the company's existing retail footprint. It also believes that its team's core operational skill sets will create significant future shareholder value as the cannabis industry matures.

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