Mr. Michael Mills reports

BODY AND MIND ANNOUNCES FISCAL YEAR END (JULY) 2023 FINANCIAL RESULTS

Body and Mind Inc. has released its financial results for the fiscal year ended July 31, 2023, and has provided shareholders with an operational update. All financial information is provided in United States dollars unless otherwise indicated.

FY 2023 (fiscal year 2023) highlights:

• Closed Seaside dispensary transaction;
• Closed a $3-million unsecured convertible debt financing with Bengal Capital and Mindset Capital, two experienced cannabis-focused funds;
• Closed a merger with CraftedPlants NJ, an entity that leases a New Jersey retail location with local cannabis-use approval for a retail location. Currently working on attaining final state licensure in New Jersey;
• Bengal Capital partner Josh Rosen appointed to the company's board of directors;
• Opened the Markham, Ill., Body and Mind dispensary;
• Exited the Michigan market and sold the Michigan Body and Mind dispensary.

Subsequent to the end of FY 2023:

• Closed the sale of the Ohio Body and Mind dispensary;
• Initiated the divestment of the Ohio Body and Mind processor;
• Fully repaid senior secured lender.

Management commentary

This year has been focused on streamlining our assets and operations in support of developing what we believe to be our highest-returning capital projects in the Illinois and New Jersey markets," stated Michael Mills, chief executive officer of Body and Mind. "The recent sale of our Ohio dispensary resulted in full repayment of our senior secured lender, improved our balance sheet and results in reduced interest expenses by roughly $1-million per year. Our divestment of the Ohio processing operation is anticipated to provide an additional $2-million in incremental capital prior to the end of November, 2023, which we plan to use to fund our dispensaries under development (see press release Sept. 6, 2023).

"Our key priorities for the following year consist of:

1. "Entry to the New Jersey market: We believe that our best return on capital in the near term is development of our retail cannabis licence in New Jersey. The New Jersey dispensary has received local approval and is pending state approval.
2. "Expansion in the Illinois market: Our first dispensary in Illinois opened in April, 2023, and continues to experience increased customer traction. Our second Illinois dispensary is under construction with walls and roof complete and groundworks ongoing. We believe the Illinois market continues to be underserved.
3. "Ongoing optimization of existing operations: We plan to continue to opportunistically evaluate the monetization of our existing assets with an emphasis on supporting sustainable cash flow generation.
4. "Licence application: We have been successful with entry into several markets based on licence application success and will continue to pursue new licence opportunities as markets open.
5. "New expansion opportunities: We review opportunities to bring our cultivation and retail experience to current and new markets with focus on efficient capital allocation.

"I look forward to updating investors on our advances in line with these priorities as the year progresses," stated Michael Mills, CEO of Body and Mind.

FY 2023 financial highlights:

• Revenues for FY 2023 were $22.8-million, a 2.4-per-cent decrease over FY 2022 revenues of $23.4-million.
• Gross profit of $5.8-million for FY 2023 compared with a gross profit of $7.4-million for FY 2022.
• FY 2023 net operating loss was $7.7-million compared with FY 2022 net operating loss of $4.5-million. The change in net operating loss was primarily impacted by construction and start-up expenses associated with the company's operating and in-progress dispensaries in Illinois and New Jersey, and a continued decrease in wholesale flower pricing in Nevada.
• FY 2023 other expenses totalled $10.5-million compared with $22.1-million in FY 2022. The largest component of FY 2023 other expenses were asset impairment charges related to the company's carrying value of certain brand, intangible assets and right of use assets totalling $9.4-million.
• FY 2023 net loss was $20.6-million (or basic and diluted loss per share of 15 cents) compared with a FY 2022 net loss of $28.2-million (or basic and diluted loss per share of 25 cents). The large difference is mostly attributable to the impairments discussed herein.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $6.0-million for FY 2023 versus adjusted EBITDA of $2.7-million in FY 2022.
• Total current assets were $9.3-million, total assets were $21.2-million, total current liabilities were $7.7-million and total liabilities were $30.5-million at July 31, 2023.

The company had 146,636,974 common shares outstanding as of Nov. 13, 2023.

For further details, please see the company's recent Form 10-K filing on EDGAR, and the annual audited 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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