Mr. Michael Mills reports

BODY AND MIND ANNOUNCES Q1 2024 FINANCIAL RESULTS

Body and Mind Inc. has released its financial results for the first quarter of fiscal year 2024, ended Oct. 31, 2023, and has provided shareholders with an operational update. All financial information is provided in United States dollars unless otherwise indicated.

Q1 FY 2024 financial highlights:

• Revenue of $5.5-million in Q1 FY 2024 as compared with $5.8-million in Q1 FY 2023, a 7-per-cent reduction in revenue from Q1 FY 2023.
• Positive net income of $200,000 in Q1 FY 2024 as compared with a net loss of $3-million in Q1 FY 2023, owing to the gain on the sale of the Body & Mind dispensary in Ohio.
• Gross margin improved to 37.4 per cent in Q1 FY 2024 as compared with 14.7 per cent in Q1 FY 2023.
• The company had 144,968,000 common shares outstanding as of Dec. 15, 2023.

Q1 FY 2024 (ended Oct. 31, 2023) and subsequent highlights:

• Closed the sale of the Body and Mind dispensary near Cleveland, Ohio, for total consideration of $8,225,000 in cash;
• Fully repaid $7.33-million senior secured debt;
• Received $2-million cash deposit in November, 2023, in relation to the sale of the Body and Mind Ohio processing operation;
• Closed the Long Beach dispensary transaction and, as a result of finalization of seller liabilities, returned 1,650,974 shares of common stock to the company's treasury (roughly 1 per cent of issued and outstanding shares);
• Continued construction for the Lynwood, Ill., dispensary with HVAC (heating, ventilation and air conditioning), plumbing, and electrical work nearly completed, and exterior excavation mostly completed;
• Advanced New Jersey state licence application in conjunction with BaM Body and Mind Dispensary N.J. Inc. The dispensary facility will be 4,000 square feet with more than 100 parking places for easy access and convenient shopping. Demolition has been completed and the building permit is expected by the end of the calendar year.

Management commentary

"The most recent quarter reflects our work to strengthen our balance sheet through divestment of our Ohio dispensary and retirement of $7.33-million in senior secured debt. We are hyper-focused on cost savings and the full repayment of our senior secured debt will save roughly $1-million per year in interest payments. Our team is continually striving for better performance and we are pleased with the improvements in our gross margin. Additionally, with the closing of the Long Beach dispensary transaction, the company reduced the total shares outstanding by roughly 1 per cent, as a result of finalization of seller liabilities. We look forward to opening our dispensaries in Illinois and New Jersey in calendar 2024, and expanding our brand and experienced team to these important markets."

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

Note: Net income for Q1 FY 2024 included income from the sale of Ohio dispensary.

About Body and Mind Inc.

Body and Mind is an operations-focused cannabis company with active retail operations in Arkansas, Illinois and California, pending retail operations in New Jersey, and craft cultivation and/or processing operations in Nevada 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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