Mr. Randy Ko reports

HEMPSANA ANNOUNCES Q4 AND FISCAL 2022 FINANCIAL RESULTS

Hempsana Holdings Ltd. has released fourth quarter and annual financial results for the 12-month period ended Dec. 31, 2022.

Randy Ko, Hempsana's chief executive officer, commented: "Given the challenges we faced, I am encouraged by our results in 2022. The cannabis industry underwent rationalization and pricing pressures intensified. This further weakened our balance sheet and strained our financial resources. In response to these challenges, we will continue to keep our costs and cash utilization to a minimum with and continue to focus on accelerating revenue growth, and deliver new, unique and innovative products to the cannabis consumers. We also established new customer relationships in our finished product contract manufacturing business. Many of the products we manufacture are now top sellers in their respective categories. We have also introduced new brands in the infused preroll space, which will help drive revenues going forward as the infused product market continues to expand. I also want to especially thank our team and business partners who worked tirelessly and patiently during this period."

Financial highlights:

• Revenues were $1,409,334 for fiscal 2022, significantly higher than the revenues in fiscal 2021 of $114,715;
• Revenues for Q4 2022 were $528,487, compared with Q4 2021 of $84,351. Q4 2022 revenues were also sequentially higher by 110 per cent over Q3 2022 revenues of $251,631;
• Net loss and comprehensive loss were $1,476,069 in fiscal 2022 compared with a net loss of $4,238,470 in 2021;
• Net loss per share was six cents in fiscal 2022, compared with 19 cents in fiscal 2021;
• The lower net loss in 2022 was mainly due to revenues growth and the fact that 2021 had higher expenses related to one-time costs stemming from the reverse takeover transaction;
• Net loss and comprehensive loss were $303,836 in Q4 2022, compared with a net loss of $384,444 in Q4 2021;
• Net loss per share was one cent in Q4 2022, compared with two cents in Q4 2021;
• Subsequent to Dec. 31, 2022, the company announced a private placement financing of $900,000.

Operational highlights:

New, unique and innovative products

• The company launched a total of seven new products in various provinces in the fourth quarter of 2022 in the flower, infused preroll and topical categories;
• The company added the CBN cannabinoid to its production capabilities that include THC (tetrahydrocannabinol), CBD (cannabidiol) and CBG (cannabigerol).

About Hempsana Holdings Ltd.

The company's business involves the manufacturing of cannabis derivatives and producing cannabis extracts for use in finished products, including vapeables, topical creams and infused consumables. Hempsana's Health Canada standard processing licensed and EU-GMP (European Union good manufacturing practice) compliant facility provides the company with access to wholesale and retail channels in Canada and internationally.

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