Mr. Obie Strickler reports

GROWN ROGUE AUGMENTS NEW JERSEY PRESENCE WITH RETAIL INVESTMENT

Grown Rogue International Inc. formed Grown Rogue Retail Ventures LLC (GRRV) and signed a definitive agreement on Jan. 16, 2024, to invest in and support Nile of NJ LLC, a company that is developing an adult-use dispensary in West New York, N.J. Despite the anticipated highly accretive nature of the investment, the capital required from Grown Rogue is immaterial to the company's current cash position and management expects the time and attention required to be relatively minimal.

Management commentary

"We are extremely excited to move forward with our partnership with Nile and Bengal to support what we hope are multiple adult-use dispensaries in New Jersey, allowing Grown Rogue to expand outside its core competency without taking too much internal capital or bandwidth. Having a protected, passive stake, and in partnership with those that have more retail experience, allows us access to shelf space for our branded flower products and earn additional profits within the highly attractive, yet nascent, New Jersey market, while continuing to focus on our core capabilities in producing affordable, craft-quality flower. We expect the opening of this dispensary within the next 120 days," said Obie Strickler, chief executive officer of Grown Rogue.

"The West New York dispensary is in a tremendous location, situated in one of the most densely populated communities in the country, just across the Hudson River from Manhattan; our team is particularly excited to produce our craft flower for this metropolitan area."

"We at Nile share Grown Rogue's and Bengal's excitement about the West New York location and the New Jersey market," said Leland O'Connor, CEO of Nile. "Having an aligned partnership with one of the premier growers of craft cannabis and a leading private investment firm enhances our offering capabilities and adds to our ability to execute on our vision."

The New Jersey cannabis market reported more than $206-million (U.S.) in sales in the three months ended Sept. 30, 2023. According to MJBizDaily, this market is expected to grow to $2.4-billion (U.S.) by 2026, representing a 40-per-cent compound annual growth rate.

About Grown Rogue International Inc.

Grown Rogue International is a craft cannabis company operating in Oregon, Michigan, Minnesota, Maryland and New Jersey, focused on delighting customers with premium flower and flower-derived products at fair prices. The company's roots are in southern Oregon, where it has proven its capabilities in the highly competitive and discerning Oregon market. The company's passion for quality product and value, combined with a disciplined approach to growth, prioritizes profitability and return on capital without sacrificing quality. The company's strategy is to pursue capital-efficient methods to expand into new markets, bringing craft-quality product at fair prices to more consumers. The company also continues to make modest investments to improve outdoor craft cultivation capabilities in preparation for eventual interstate commerce.

We seek Safe Harbor.