Mr. Travis McIntyre reports

CANADABIS CAPITAL, WITH SUB STIGMA GROW, ANNOUNCES CONTINUED POSITIVE GROWTH IN FISCAL Q3 2023, HIGHLIGHTED BY 874% INCREASE IN NET INCOME AND POSITIVE EARNINGS PER SHARE

Canadabis Capital Inc. has released continued strong results for the fiscal third quarter and nine months ended April 30, 2023. Building on the company's success to date in 2023, Canadabis recorded robust growth in both the quarter and year-to-date (YTD) periods, driven by a combination of continued sales expansion, continuing realization of cost-efficiencies, and rising demand for new and existing stock-keeping units (SKUs). This financial performance positions the company well to continue efficiently and effectively executing its business strategy, and focusing on the generation of positive returns for shareholders. The company's financial statements and notes, as well as management's discussion and analysis (MD&A) are available on Canadabis's website and filed on SEDAR.

"The company's positive results for the quarter and YTD 2023 provide a clear indication of our ability to grow sales, gross profit, net income and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization], while effectively navigating ongoing headwinds facing the broader cannabis industry," said Travis McIntyre, chief executive officer of Canadabis. "With a robust offering of multiple in-demand products under our Dab Bods, High Priestess, NGL and Sigma Grow brands, we believe Canadabis can capture further market share, increase unit sales and enhance cost efficiencies to help maintain our strong momentum through Q4 2023, putting us on track to achieve a record-breaking fiscal year."

Third quarter 2023 highlights:

• Positive net income and earnings per share -- net income was positive for the seventh consecutive quarter, totalling $1.2-million in Q3 2023, 874 per cent higher than Q3 2022 and in line with the previous quarter, as earnings per share were one cent compared to nil in Q3 2022. Net income grew 2,431 per cent to $3.2-million in the nine-month period over the same period in 2022, with two cents of earnings per share.
• Revenue underscores performance -- gross revenue was $9.6-million in Q3 2023, 123 per cent higher than Q3 2022, and was a record $27-million for the nine months YTD, increasing 154 per cent over the same period in 2022, driven by steady growth and continued demand for new and existing SKUs launched in the 2022 fiscal year.
• Expanding adjusted EBITDA -- adjusted EBITDA totalled $1.5-million in Q3 2023 and was $4.1-million for the nine months ended April 30, 2023, growing 226 per cent and 290 per cent over the same respective periods in 2022.
• Increased brand awareness contributes to growing unit sales -- over 489,000 units of combined concentrate and dry flower were sold in Q3 2023, marking a corporate record and a 153-per-cent increase over the same quarter in 2022, driven primarily by increased brand awareness, continued growth of the Dab Bod products and the launch of the company's High Priestess brand into the marketplace, all of which have been well received and sold out multiple times, with increasing orders from provincial purchasers.
• Product reformulation to align with consumer preferences -- Canadabis continues to seek and receive feedback from current customers regarding preferences for terpene and cannabinoid profiles, and the company has continuously launched new products and made adjustments to certain concentrate lines in order to enhance product marketability.
• Negotiations support cost controls -- negotiations with multiple suppliers and other cannabis cultivators are continuing, and have enabled Canadabis to manage its input expenses while implementing new production line procedures to reduce operational costs, a trend that is expected to continue throughout 2023, particularly as cultivators reposition themselves in the industry.

Outlook

With the continued positive performance delivered thus far in fiscal 2023, including exceptional growth in gross and net revenue, net income, adjusted EBITDA, along with rigorous cost controls, Canadabis has set the stage to finish its fiscal 2023 with record-setting results. The continuing execution of the company's strategic vision has created a platform for growth that offers a proven ability to accelerate momentum, positioning it well for a future focused on continued customer expansion and product diversification initiatives. As a vertically integrated cannabis company, Canadabis can be nimble in response to external factors that may lead to fluctuations in selling prices, input costs or changing customer demand, while maintaining strict and strategic capital management.

The company intends to leverage its extensive brand portfolio, enhanced brand recognition, distinctive products and strategic resource allocation to further develop innovative brands and create new products that optimally respond to evolving customer preferences. With the company's focus on cost control and the rising sales demand from provinces, including Alberta, Ontario and British Columbia, Canadabis is excited to pursue increased sales of its resin and shatter infused prerolls, moonrocks, Dab Bod and High Priestess products, and continue to attract greater market share.

Looking ahead as the company transitions into fiscal 2024, Canadabis remains focused on building further success, pushing boundaries, and striving to deliver positive and sustainable shareholder value. The company is strategically prepared for significant growth and product expansion, driven by innovative cultivation techniques, market penetration strategies and an unwavering commitment to quality. The company's strategic direction remains clear: Canadabis will actively pursue opportunities for growth, remain responsive to the evolving cannabis market and continue to set new standards of excellence in its operations. The outlook for Canadabis is not just promising, it is an exciting testament to the resilience, ingenuity and collaborative strength of the company. Canadabis thanks all of its shareholders and other key stakeholders for their continued support.

About Canadabis Capital Inc.

Canadabis Capital is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from cultivation to retail, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, the company remains focused on finding and capitalizing on chances to grow, diversify and continue to lead its industry.

We seek Safe Harbor.