Mr. Nicolas Krantz reports

ACE BEVERAGE GROUP TO ACQUIRE NUDE BEVERAGE BRAND FROM MXM BEVERAGES LTD.

Corby Spirit and Wine Ltd.'s subsidiary, Ace Beverage Group Inc., has signed a definitive agreement to acquire the Nude ready-to-drink brand and certain assets of MXM Beverages Ltd. for $11-million, which will be financed using available financing from ABG's existing credit facility.

Following Corby's acquisition of ABG last year, the transaction accelerates Corby's and ABG's shared path to leadership of the RTD category in Canada by addressing a key priority of increasing market share in Western Canada.

"We're excited to leverage the Nude team and brand to propel our expansion in Western Canada. Nude's standing as a key RTD player in the Western Canadian market perfectly complements our existing position in Ontario, paving the way for a national platform to introduce cutting-edge RTD innovations to consumers nationwide," remarked Cam McDonald, ABG's chief executive officer.

Nicolas Krantz, Corby's president and chief executive officer, added: "Following last year's successful integration of ABG's brands into our combined RTD portfolio, which now includes Cottage Springs, Absolut, Malibu, Jameson, Polar Ice and J.P. Wiser's, we are delighted at this unique opportunity to reinforce our position in this attractive segment, with the ambition to become the leading RTD portfolio in Canada. This transaction will help further drive additional innovation and unlock synergies in a critical growth category for our business."

Subject to satisfaction of the closing conditions (including the issuance of an approval and vesting order by the Supreme Court of British Columbia), the transaction is expected to be completed in the fourth quarter of Corby's fiscal year 2024.

FTI Consulting and EY acted as financial advisers, and McCarthy Tetrault LLP acted as legal adviser to Corby and ABG.

About Corby Spirit and Wine Ltd.

Corby is a leading Canadian manufacturer, marketer and distributor of spirits, wines and ready-to-drink beverages. Corby's portfolio of owned brands includes some of the most renowned brands in Canada, including J.P. Wiser's, Lot 40 and Pike Creek Canadian whiskies, Lamb's rum, Polar Ice vodka, and McGuinness liqueurs, as well as the Ungava gin, Cabot Trail maple-based liqueurs and Chic Choc spiced rum, Cottage Springs ready-to-drink beverages, and Foreign Affair wines. Through its affiliation with Pernod Ricard SA, a global leader in the spirits and wine industry, Corby also represents leading international brands such as Absolut vodka, Chivas Regal, the Glenlivet and Ballantine's Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlua liqueur, Mumm champagne, and Jacob's Creek, Wyndham Estate, Stoneleigh, Campo Viejo and Kenwood wines. Corby is a publicly traded company based in Toronto, Ont., and is listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B.

About Ace Beverage Group Inc.

ABG is a leading better-for-you beverage alcohol company in Canada. Its flagship brand, Cottage Springs, is one of the biggest and fastest-growing ready-to-drink brands in Canada. Additional popular brands include Ace Hill, Cabana Coast and Casa Del Ray. ABG's mission is to develop, launch and market the world's best-tasting BFY alcoholic beverages.

About Nude beverages

Headquartered in Vancouver, B.C., Nude Beverages was created with a mission to develop drinks that were sugar and sweetener free. Nude launched Canada's first ready-to-drink 5 per cent sugar-free vodka soda in 2017, and has since crafted several Nude product line extensions and new brands, such as Los Flamingos and Slappy's.

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