Mr. John Campbell reports

BEVCANNA ANNOUNCES COMPLETION OF AUDITED 2021 FINANCIAL STATEMENTS AND PROVIDES UPDATE; COMPANY PROVIDES FINANCIAL REPORTING PROGRESS AND KEY UPDATES

Bevcanna Enterprises Inc. today provided a corporate update, including progress related to revoking the current cease-trade order. Accordingly, the company is pleased to report the completion of its audited annual consolidated financial statements for the year ended Dec. 31, 2021, from the company's auditor Dale Matheson Carr-Hilton Labonte LLP, chartered professional accountants (DMCL).

The company is actively preparing its audited annual consolidated financial statements for the year ended Dec. 31, 2022, and interim financial statements for the three months ended March 31, 2023, and six months ended June 30, 2023. Upon the successful completion of audited annual consolidated financial statements for the year ended Dec. 31, 2022, and unaudited interim financial statements for the first and second quarters of 2023, Bevcanna plans to submit a revocation application to the British Columbia Securities Commission in relation to the previously issued cease-trade order resulting from the delayed filing of the company's financial statements. Bevcanna remains dedicated to fulfilling its regulatory obligations and looks forward to resolving the cease-trade order, thereby enabling the company to resume normal trading activities. The company will continue to provide updates to its stakeholders regarding the progress of its filings, regulatory efforts, and the application process. The company appreciates the continued support of its stakeholders throughout this process.

Board of directors

The company also announces that effective July 19, 2023, Doug Mason resigned from his position on the board of directors. The company expresses its appreciation to Mr. Mason for his dedicated service and invaluable contributions during his tenure as a director.

Subsidiary streamlining

The company also announces the voluntary dissolution of two of its wholly owned subsidiaries, Exceler Holdings Ltd. and SKAL Infused Drinks Inc. effective July 28, 2023. After thorough evaluation and analysis, it has become evident that these subsidiaries no longer hold significant value or assets pertinent to the company's current and future operations, as well as balance sheet. Changing market conditions, high inflation and a challenged global cannabis industry, have made it unfeasible for the company to allocate further resources for the development of the product lines and distribution prospects owned by these entities. As the industry landscape evolves and market dynamics shift, the company continues to explore strategic opportunities to drive growth and create value for its stakeholders.

Legal proceedings

The company also announces that it, and several of its wholly owned subsidiaries, are named in a number of legal proceedings as a plaintiff and defendant. These legal proceedings largely stem from the acquisition of Embark Health Inc. Please refer to the Canadian Securities Exchange Form 7 for disclosure of the nature and status of these proceedings. As Bevcanna continues to navigate these legal proceedings, the company intends to provide updates on these matters as required by applicable law.

About Bevcanna Enterprises Inc.

Bevcanna Enterprises is a diversified lifestyle and wellness consumer packaged goods company. Bevcanna develops and manufactures a range of alkaline, mineralized 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 HACCP-certified flexible manufacturing facility in Osoyoos, B.C.

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