Mr. Paul Antoniadis reports

GOOD NATURED PRODUCTS INC. ANNOUNCES FIRST TRANCHE CLOSING OF ITS NON-BROKERED PRIVATE PLACEMENT

Further to Good Natured Products Inc.'s press release dated Feb. 14, 2024, it has closed the first tranche of a non-brokered private placement financing, by issuing 15,639,998 units at six cents per unit for gross proceeds of $938,399.88.

Each unit consisted of one common share in the capital of the company and one common share purchase warrant of the company. Each warrant entitles the holder thereof to acquire one common share at an exercise price per warrant share of eight cents for a period of 30 months from the closing of the first tranche.

In connection with the first tranche closing of the offering, the company paid aggregate finder's fees of $8,671.99 and issued an aggregate of 144,534 compensation warrants, pursuant to a finder's fee agreement entered between the company and a finder. Each compensation warrant entitles the holder thereof to purchase one warrant share at a price of six cents per warrant share for a period of 30 months from the date of issuance.

The net proceeds of the offering are expected to be used by the company to finance working capital and one-time expenses associated with previously announced cost reduction activities (see press releases dated Feb. 14, 2024, and Feb. 1, 2024).

All securities issued pursuant to the above referenced offering will be subject to a statutory four-month hold period. The offering is subject to a number of conditions, including, without limitation, approval of the TSX Venture Exchange.

Insiders of the company, prior to closing the first tranche, subscribed for a total of 5.17 million units for total gross proceeds of $310,200 under the offering. Participation by insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the offered shares issued to such related parties, nor the consideration paid by such related parties, exceeded 25 per cent of the company's market capitalization. The company did not file a material change report in respect of the related party transaction 21 days prior to the closing of the offering as the details of the participation of insiders of the company had not been confirmed at that time. Further details will be provided in a material change report to be filed by the company subsequent to the dissemination of this press release.

The company intends to issue additional units in subsequent tranches as part of the offering, up to the maximum amount announced in the Feb. 14, 2024, press release. The TSX Venture Exchange has granted a 30-day extension to the company to close additional tranches.

Close of mortgage refinancing for Brampton, Ont., facility

In addition, the company announces that on Feb. 27, 2024, it closed the mortgage refinancing for its Brampton, Ont., facility. Principal and interest will be paid monthly at a fixed rate of 5.75 per cent. All other terms and conditions announced in the press release dated Feb. 20, 2024, remain unchanged.

About Good Natured Products Inc.

Good Natured is passionately pursuing its goal of becoming North America's leading Earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products that use more renewable materials, less fossil fuel and no chemicals of concern.

Good Natured offers over 400 products and services through wholesale, direct-to-business and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.

We seek Safe Harbor.