Mr. David Schwede reports

HERITAGE CANNABIS OBTAINS CREDITOR PROTECTION TO PURSUE RESTRUCTURING AND SALES PROCESS

Heritage Cannabis Holdings Corp. and its subsidiaries have sought and obtained an order for creditor protection from the Ontario Superior Court of Justice (commercial list) pursuant to the Companies' Creditors Arrangement Act.

The difficult but necessary decision to commence CCAA proceedings was made after careful consideration of the company's financial position, while evaluating all available alternatives and engaging in significant consultation with legal and financial advisers. Additionally, on April 1, 2024, the company's senior secured lender, BJK Holdings Ltd., made demand to the company for payment in full of certain indebtedness owing by the Heritage group to the lender in the amount of $8,421,088.87, excluding legal fees of the lender's counsel.

The initial order includes, among other things: (i) a stay of proceedings in favour of the company and its Canadian subsidiaries; and (ii) the appointment of KPMG Inc. as monitor of the company. The initial order also extends the stay of proceedings to certain U.S. affiliates of the company which are not applicants in the CCAA proceedings.

The board of directors of the company will remain in place, and management will remain responsible for the day-to-day operations of the company under the general oversight of the monitor.

Heritage Cannabis intends to seek approval of a sale and investment solicitation process, which, if approved, would allow interested parties to participate in the process in accordance with the SISP procedures. Additional details in respect of the SISP will be disclosed in due course.

It is anticipated that the Canadian Securities Exchange will place the company under delisting review and that there can be no assurance as to the outcome of such review or the continued qualification for listing on the CSE.

Additional information regarding the CCAA proceeding can be found on the monitor's website.

About Heritage Cannabis Holdings Corp.

Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the United States, operating two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Adults Only, Juicy Hoots, Premium 5, Thrifty, feelgood, the CB4 suite of medical products in Canada and ArthroCBD in the U.S.

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