Mr. Klee Irwin reports

IRWIN NATURALS REPORTS Q1 2023 FINANCIAL RESULTS

Irwin Naturals Inc. has released its financial results for the first quarter ended March 31, 2023, on SEDAR. Dollar amounts are stated in U.S. dollars unless otherwise stated.

Financial highlights for Q1 2023 (all comparisons are for the year ended Dec. 31 unless otherwise indicated):

• Q1 2023 revenue was $22.5-million, down 0.4 per cent from $22.6-million in Q1 2022.
• Income from operations decreased $4.0-million from $2.5-million in Q1 2022 to a loss of $1.5-million in Q1 2023. The decrease is primarily attributed to the continued start-up costs related to the company's 2022 and 2023 acquisitions at Irwin Naturals Emergence (the company acquired 13 mental health clinics and one advertising platform) and Irwin Naturals Cannabis (intellectual property licensing to the cannabis industry).
• Q1 2023 net loss of $7.7-million includes $6.5-million of impairment charges related to the 2022 acquisitions.

Financial highlights for Q1 2023 and year-to-date 2023:

• Secured a credit facility as of Feb. 1, 2023, with its existing commercial lender for $40-million, with the potential of being up to $60-million;
• Completed the acquisition of Serenity Health LLC, one of the leading ketamine clinics in Louisville, Ky., on Feb. 17, 2023;
• Announced the successful acquisition of Keta Media LLC, doing business as Ketamine Media, the nation's foremost advertising company dedicated to raising awareness about the clinical use of ketamine, on March 17, 2023.

Operational highlights

Irwin has commenced its expansion into the high-growth cannabis and psychedelic sectors. During the first quarter of 2023, the company launched the first products to the continental cannabis market and has signed 10 brand licensing deals that will see Irwin products enhanced with tetrahydrocannabinol offered in places like California, Colorado, Mississippi, Michigan, New Mexico, Oregon, Oklahoma and Canada. Additionally, to date, the company has announced the acquisition of 13 clinics and one advertising company specializing in ketamine clinics. The company will continue to build upon this solid foundation and make the necessary investments to support its growth objectives within the psychedelic sector.

Sean Sand, chief financial officer, stated: "During the first quarter of 2023, we launched the first products related to our licensing in our cannabis sectors. We expanded our mental health clinics footprint in Kentucky through an acquisition and acquired an advertising platform to expand our customer outreach at our mental health clinics."

About Irwin Naturals Inc.

Irwin has been a household name and best-in-class nutraceutical company since 1994. It is now leveraging its brand into both the cannabis and psychedelic sectors. On a mission to heal the world with plant medicine, Irwin has operated its nutraceutical business profitably for over 28 years. The growing portfolio of products is available in more than 100,000 retail doors across North America, where 80 per cent of households know the Irwin brand. In 2018, the company first leveraged its brand to expand into the cannabis industry by launching hemp-based cannabidiol products into the mass market. The company is leveraging its famous halo of brand trust to become, perhaps, the first household name brand to offer tetrahydrocannabinol-based products. Its rapidly growing national chain of psychedelic mental health clinics is called Irwin Naturals Emergence.

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