Mr. Randy Ko reports

HEMPSANA INC. ANNOUNCES APPOINTMENT OF A PROPOSAL TRUSTEE

On March 11, 2024, Hempsana Holdings Ltd.'s wholly owned operating subsidiary, Hempsana Inc., filed a notice of intention to make a proposal (NOI) under Section 50.4 of the Bankruptcy & Insolvency Act (R.S.C. 1985, c. B-3), as amended. B. Riley Farber Inc. accepted the appointment as trustee in the proposal of the company.

The company has reduced its operations in order preserve cash during this process. However, the company is still taking and fulfilling orders for its CBD (cannabidiol), CBG (cannabigerol) and THC (tetrahydrocannabinol) bulk cannabis products that are in stock. Please contact the company to get full list of its available inventory for sale.

Randy Ko, president of Hempsana, said: "The company remains a fundamentally good business, with high-quality products, profitable margins, great customers, highly skilled employees and a strong supply chain. Unfortunately, we face liquidity constraints due to a combination of historical, non-recurring events that have now been addressed."

The company has a commitment from a DIP (debtor-in-possession) lender to provide additional financing in the form of a debtor-in-possession facility that should provide adequate liquidity during the sale process. The company anticipates that all key staff members will continue to be paid and that suppliers will be paid for the goods and services provided postfiling on a continuing basis. The company's obligations incurred before the filing of the NOI will be addressed in any plan that may be presented under the NOI proceedings.

The company intends to apply to court to seek an order for, among other things, approving the sale process authorizing the proposal trustee to conduct the sale process. Interested parties will be given the opportunity to submit offers for the acquisition of all or substantially all of the company's assets and business once the sales process has been approved by the court.

Further details respecting the NOI filing, the proposed sale process order and the sale process as well as copies of the aforementioned will be filed under the company's profile on SEDAR+ and will also be available on the proposal trustee's website. Readers are urged to consult the full text of all of those documents for further, more detailed information.

About Hempsana Holdings Ltd. and Hempsana Inc.

Through its wholly owned subsidiary, Hempsana Inc., Hempsana Holdings is a public company involved with the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. The business of subsidiary Hempsana Inc. is the principal business of listed issuer Hempsana Holdings. Hempsana's Health Canada standard processing licensed and EU-GMP-compliant (European Union good manufacturing practice) facility provides the company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, diamonds, tablets, topicals, tinctures, salves, infused prerolls and hemp-based CBD products that are all manufactured and distributed by Hempsana.

We seek Safe Harbor.