Mr. Meni Morim reports

LIFEIST ANNOUNCES SALE OF CANNMART

Lifeist Wellness Inc. has entered into a definitive share purchase agreement with 1463663 B.C. Ltd. (the buyer), a newly incorporated affiliate of Tierra Corp., and the company's Canadian cannabis subsidiaries, collectively referred to as the CannMart Group, to divest and sell all of the shares of the CannMart Group to the buyer for total aggregate consideration of $5-million, subject to certain adjustments, plus the adjusted value of inventory at the time of closing.

The projected final sale price for CannMart may thus exceed Lifeist's total present market capitalization, resulting in extraordinarily attractive price-to-book and price-to-cash ratios for Lifeist postclosing. This will allow the company to aggressively drive growth in its Mikra Cellular Sciences and Aussie Vapes subsidiaries and to take advantage of additional emerging opportunities as they arise to increase shareholder value in the near term and the long term.

"The decision to undertake this transaction is a pivotal step in our broader strategy to fortify the financial position of both Lifeist and CannMart by improving cash flow, streamlining operational costs and strategically shifting the focus of both entities beyond the constraints of the current cannabis regulatory framework," said Meni Morim, chief executive officer of Lifeist. "The shareholders from both companies benefit from the laser-like focus of each management team on their respective lines of business. Lifeist will focus on continuing the growth of its nutraceutical business Mikra and Aussie Vapes while CannMart will benefit from operating away from the onerous demands imposed by the multilayered regulatory regime that governs Canadian public cannabis companies. Lifeist will also be positioned to greatly enhance available free cash without dilution or debt, allowing it to not only sustain but aggressively grow existing ventures while actively exploring additional strategic opportunities."

Tierra is a private Canadian corporation led by its principal shareholder, Colin Samples. Mr. Samples is a respected entrepreneur and seasoned executive who brings a wealth of experience from his multiple roles in the cannabis industry in Canada and abroad. He has demonstrated a deep understanding of cannabis business operations and is positioned to continue steering CannMart forward in a less heavily regulated environment.

The transaction allows Lifeist to complete the strategic pivot launched in 2021 with the formation of its wholly owned subsidiary Mikra Cellular Sciences. The company can now focus its attention more fully on opportunities in the large and growing nutraceutical space. In Q4 2023, Mikra launched two new natural science-based products and is well positioned to pursue opportunities in the wellness market, taking advantage of the substantially higher margins, lower effective taxation rate, much lower regulatory compliance overhead costs, and far greater freedom to creatively market and advertise innovative products therein as compared with the regulated cannabis space. The nutraceutical market in North America alone was worth $88.3-billion (U.S.) in 2022 and is forecast to grow to $118.7-billion (U.S.) by 2028.

In addition, Lifeist retains upside exposure to new developments in the regulated cannabis space through purchase warrants in Tierra and is free to re-enter the industry domestically or internationally if and when management so sees fit. Under the terms of the share purchase agreement, the company has agreed to sell all of the issued and outstanding shares of each of the corporations in the CannMart Group for aggregate consideration of $5-million plus the adjusted value of inventory at the time of closing. The purchase price payable to the company on closing is structured as follows: $500,000 payable in cash upon closing of the transaction, subject to a working capital adjustment; a $4.5-million senior secured vendor take-back loan with set monthly repayments; and common share purchase warrants to acquire up to 9.9 per cent of the equity of Tierra, parent company of the buyer.

For the purposes of Section 301 of the Business Corporations Act (British Columbia) (BCBCA), the transaction constitutes the sale of the majority of the company's undertaking and accordingly requires the approval of two-thirds of the shareholders of the company entitled to vote thereon in order to complete the transaction. In addition to obtaining shareholder approval, the closing of the transaction is subject to, among other things, the satisfaction of all regulatory requirements and the fulfilment of certain other conditions, including the granting of final approval of the transaction by the TSX-V. The company's intention is to complete the transaction as soon as practicable after the annual and special meeting of the company's shareholders being held on March 14, 2024.

In accordance with the requirements of notice and access, which the company is using to deliver its meeting proxy materials, the company will be filing and posting its management information circular for the meeting on SEDAR+ and its website shortly, which further describes the transaction, among other matters to be voted on at the meeting. This news release describes some of the principal terms of the transaction and the share purchase agreement. It does not purport to be complete and it is subject to and qualified in its entirety by reference to the provisions of the share purchase agreement, a copy of which will be available on the company's profile on SEDAR+. Shareholders are urged to review the circular, once available, for additional details of the share purchase agreement and the transaction.

The transaction and the provisions of the share purchase agreement are the result of arm's-length negotiations conducted between the company and the buyer. Kronos Capital Partners Inc. is acting as financial adviser to Lifeist in connection with the transaction.

About Lifeist Wellness Inc.

Sitting at the forefront of the postpandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include CannMart, which operates a B2B (business-to-business) wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards, including for CannMart Labs, a BHO (butane hash oil) extraction facility producing high-margin cannabis 2.0 products; Australian Vapes, one of Australia's largest on-line retailers of vaporizers and accessories; and Mikra, a biosciences and consumer wellness company developing and selling innovative therapies for cellular health.

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