Mr. Travis McIntyre reports

CANADABIS CAPITAL, WITH SUB STIGMA GROW, ANNOUNCES FISCAL Q1 2024 RESULTS HIGHLIGHTED BY YEAR-OVER-YEAR GROWTH IN REVENUE, ADJUSTED EBITDA AND NET INCOME

Canadabis Capital Inc. has released its first quarter fiscal 2024 results featuring another consecutive period of growth in gross and net revenue. The company's financial statements and notes as well as management discussion and analysis (MD&A) are available on the company's website and filed on SEDAR.

This quarter reflects another period generating positive earnings and robust adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), driven by a 45-per-cent increase in unit sales of combined concentrate and dry flower over the same period in the prior year. Stigma Grow also continues to reformulate concentrate lines to meet demands from current clients to maintain larger terpene and cannabinoid profiles across the company's product offering. With this continuing innovation, coupled with demand for its award-winning infused prerolls, live rosin vapes and high-cannabidiol cartridges, Canadabis anticipates continued positive performance in fiscal 2024.

"Building on the momentum realized in fiscal 2023, I am proud to report that our first fiscal quarter of 2024 represents another period of growing gross and net revenue," said Travis McIntyre, chief executive officer of Canadabis. "Our unique capabilities and consumer-centric value proposition have earned brand loyalty and positioned Canadabis to leverage the extracts segment while introducing additional innovative products such as our latest offering, the superslim cigarette-style prerolls -- Electric Dartz. By further optimizing operational efficiencies, exercising prudent financial management and maintaining our competitive edge in the cannabis industry, we believe the company is well positioned to drive continued shareholder value creation."

Q1 2024 highlights:

• Consistent positive sales: Gross revenue of $9-million grew 15 per cent over the same period in 2023 and 18 per cent over the previous quarter while net revenue of $5.7-million was 12 per cent and 20 per cent higher than Q1 2023 and Q4 2023, respectively. This performance was driven by steady growth and continued demand for newly launched and existing SKUs (stock-keeping units) as sales of over 550,000 units of combined concentrate and dry flower in Q1 2024 reflect a 45-per-cent increase compared with 380,000 units sold in Q1 2023.
• Continued profitability: Net income generated during Q1 2024 totalled $707,117 after tax, or one cent per share, compared with $700,313 during the same period in 2023, reflecting the impact of additional staff levels that align with revenue and production increases, along with enhanced advertising and promotional activities designed to foster demand in light of increased competition in the infused preroll market.
• Adjusted EBITDA contributing to performance: Adjusted EBITDA totalled over $1.1-million for Q1 2024 and reflects an increase of 16 per cent over the same period the prior year, largely attributable to enhanced brand awareness, continuing expansion of the Dab Bod products and the launch of the High Priestess brand, along with multiple new Dab Bod brand SKUs introduced into the marketplace.
• New products drive demand: All new products launched during previous quarters have continued to post growth and record sales in Alberta, British Columbia, Manitoba, Saskatchewan and Ontario, including the company's newest and first-of-its-kind product line, superslim cigarette-style prerolls, Electric Dartz, which have received solid adoption across the provinces.
• Cost management in focus: The company has actively managed input expenses and inflationary pressures through negotiations and economies of scale, securing cost savings while increasing operational efficiencies and expanding yields in cultivation and extraction. The company continues to maintain its cost management plans, along with a focus on increasing efficiencies, cash flow and liquidity.

Outlook

With the continued year-over-year growth in gross and net revenue, net income, and adjusted EBITDA as well as rigorous cost controls delivered to date in Q1 2024, Canadabis has set the stage to deliver another year of strong results. The company will strive to capitalize on its thriving extracts segment while effectively navigating a competitive and dynamic climate inherent within the cannabis industry.

The company has established several competitive advantages to ensure long-term success, including its butane hydrocarbon (butane hash oil) extraction process, and the company continues to explore new formulations that can meet demand and support the diversification of its product offerings. Rising demand from Alberta, Ontario and British Columbia increased sales of resin-infused and shatter-infused prerolls and moon rocks while Dab Bod and High Priestess products continue to attract greater market share.

As a vertically integrated cannabis company, Canadabis brings unique insights and the ability to respond swiftly to external factors that may impact selling prices, input costs or shifting customer demands. With an unwavering commitment to stringent and strategic capital management, the company intends to leverage the extensive Canadabis brand portfolio, excellent brand recognition, distinctive products and strategic resource allocation to further develop innovative products that optimally align with consumer preferences.

Canadabis remains dedicated to advancing success and exploring new opportunities through 2024 while continuing to prioritize shareholder value creation. The Canadabis road map remains clear: actively pursue growth opportunities, stay agile and well positioned to react within a volatile cannabis market, and consistently strive to improve operational standards. Canadabis looks forward to providing further updates on its progress and success during the coming fiscal year and appreciates the support of its shareholders, board of directors and employees.

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, Canadabis remains focused on finding and capitalizing on chances to grow, diversify and continue to lead its industry.

The company's integrated subsidiaries are:

• Stigma Pharmaceuticals Inc. -- 100 per cent held;
• 1998643 Alberta Ltd. (operating as Stigma Grow) -- 100 per cent held;
• Full Spectrum Labs Ltd. (operating as Stigma Roots) -- 100 per cent held;
• 2103157 Alberta Ltd. (operating as Indicative Collection) -- 100 per cent held;
• Goldstream Cannabis Inc. -- 95 per cent held.

About Stigma Grow

Stigma Grow is a cutting-edge cannabis cultivation and extraction company positioned advantageously to meet the unmet market demands and stigmas within the legal cannabis industry head-on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada's legal cannabis industry.

We seek Safe Harbor.