Mr. Michael Mills reports

BODY AND MIND ANNOUNCES Q2 2024 FINANCIAL RESULTS

Body and Mind Inc. has released its financial results for the second quarter of fiscal year 2024 ended Jan. 31, 2024, and provided shareholders with an operational update. All financial information is provided in U.S. dollars unless otherwise indicated.

Q2 FY 2024 (ended Jan. 31, 2024) financial highlights:

• Revenue of $4.4-million in Q2 FY 2024, as compared with $4.4-million in Q2 FY 2023.
• Net loss of $200,000, as compared with net loss of $2.7-million in Q2 FY 2023.
• Gross margin improved to 45.7 per cent in Q2 FY 2024, as compared with 39.9 per cent in Q1 FY 2023.
• The company had 147,686,393 common shares outstanding as of March 25, 2024.

Q2 FY 2024 operational highlights:

• As part of the company's continuing effort to focus efforts on its highest-return projects in Illinois and New Jersey, it entered into a definitive agreement to divest the company's Nevada cultivation and production operations for total consideration of $2-million. For more details, see the company's press release issued on Feb. 1, 2024.
• Advanced New Jersey state licence application in conjunction with BaM Body and Mind Dispensary NJ 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 soon.
• Continued construction on the Lynwood, Ill., dispensary with building interior and exterior almost complete, road work approvals in process, and exterior excavation mostly completed. The company expects the Lynwood dispensary to open some time in the first half of calendar 2024.

Management commentary

"The most recent quarter reflects our work to improve financial performance, improve margins, and streamline our operations to support building our operations in Illinois and New Jersey," stated Michael Mills, chief executive officer of Body and Mind. "Nevada's wholesale pricing challenges and wholesale tax structure made it difficult to see the company's Nevada operations generating sufficient profits over the long term when compared with the opportunity presented by taking the proceeds from Nevada's sale and continuing to build on our Illinois and New Jersey opportunities. We feel the Illinois and New Jersey markets continue to be underserved and offer significant opportunities for revenue growth as we expand our brand and bring our skilled teams to these new markets."

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 Illinois and California and pending retail operations in Illinois and New Jersey. It works daily to increase its market share through delighting customers while also continuing to hone its operational efficiencies to drive profits. The company id 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. The company 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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