Mr. John Campbell of Bevcanna reports

BEVCANNA ANNOUNCES STRATEGIC PURCHASE AND DISTRIBUTION AGREEMENT WITH HERITAGE CANNABIS

Bevcanna Enterprises Inc. has entered into an agreement with Heritage Cannabis Holdings Corp. for the sale and distribution of the company's cannabis-infused beverages in Canada.

Under the agreement, Heritage will purchase Bevcanna cannabis beverage products, as and when purchase orders (POs) are received from provincial cannabis boards, distributors and retailers in Canada. As consideration for the foregoing, Bevcanna and Heritage will equally participate in the net margin. The cannabis beverages that will be sold and distributed include the market-leading Keef brand beverages, and Bevcanna house brands including but not limited to Anarchist Mountain.

"We are thrilled to be partnering with Heritage and are confident that this agreement will allow us to provide our market-leading cannabis beverages to a broader range of consumers across Canada," said John Campbell, chief financial officer and chief strategy officer at Bevcanna.

Ontario and British Columbia

In the provinces of Ontario and British Columbia, upon receipt of a PO from the Ontario Cannabis Store (OCS) or the British Columbia Liquor Distribution Branch (BCLDB) issued to Embark Health Inc., Heritage shall purchase the finished Bevcanna products listed in the PO for an amount equal to the cost to produce the PO dollar amount from Embark. Bevcanna will utilize its sales licence granted to its wholly owned subsidiary, Embark, to sell the Bevcanna products in the provinces of Ontario and British Columbia. From the proceeds of the purchase orders, Bevcanna will pay Heritage its participation of the net margin and the amount equal to the original purchase price.

All other provinces and territories

For all other provinces and territories, upon receipt of any provincial or territorial board in Canada other than the OCS or the BCLDB (collectively, the other Canadian boards), Heritage shall purchase the finished Bevcanna products listed in the PO for an amount equal to the cost to produce the PO dollar amount from Embark. Heritage will utilize the sales licence of either of its wholly owned subsidiaries, Heritage Cannabis East Corp. or Heritage Cannabis West Corp., to sell the Bevcanna products. From the proceeds of the purchase orders, Heritage will pay its participation of the net margin to Embark and additionally, Heritage shall retain an amount equal to the repayment of the purchase price.

About Bevcanna Enterprises Inc.

Bevcanna Enterprises is a diversified health and wellness beverage and natural products company. Bevcanna develops and manufactures a range of alkaline, plant-based and cannabinoid beverages and supplements for both in-house brands and white-label clients.

Based in British Columbia, Canada, Bevcanna owns a pristine alkaline spring water aquifer and a high capacity 40,000-square-foot, Health Canada and Hazard Analysis and Critical Control Point certified flexible manufacturing facility in Osoyoos, B.C. The company's extensive distribution network includes more than 3,000 points of traditional and regulated retail distribution, and on-line through its market-leading TRACE brand, its Pure Therapy natural health and wellness e-commerce platform, its fully licensed Canadian cannabis manufacturing and distribution network, and a partnership with No. 1 U.S. cannabis beverage company Keef Brands.

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