Mr. John Campbell reports

BEVCANNA ANNOUNCES STRENGTHENING OF BALANCE SHEET WITH DEBT SETTLEMENT COMPANY STRENGTHENS BALANCE SHEET

In line with Bevcanna Enterprises Inc.'s continued efforts to strengthen its balance sheet, the company intends to settle debt in the aggregate amount of $2,909,633.31 owed by the company to certain creditors of the company in exchange for 29,096,333 common shares at a deemed price of 10 cents per debt settlement share.

The proposed debt settlements with Marcello Leone, John Campbell, Martino Ciambrelli, Bruce Dawson-Scully, Howard Blank and William MacDonald (collectively, the insider settlements) are related party transactions within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The insider settlements are exempt from the valuation requirement of MI 61-101 by virtue of the exemptions contained in Section 5.5(b) of MI 61-101 as the company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the insider settlements will not exceed 25 per cent of the company's market capitalization. As the material change report disclosing the insider settlements is being filed less than 21 days before the transaction, there is a requirement under MI 61-101 to explain why the shorter period was reasonable or necessary in the circumstances. In the view of the company, it is necessary to immediately close the insider settlements and, therefore, such shorter period is reasonable and necessary in the circumstances to improve the company's financial position.

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. The company's extensive distribution network includes traditional and regulated retail distribution and on-line through its market-leading brands.

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