Mr. John Miller reports

THC BIOMED REPORTS THIRD QUARTER RESULTS

THC Biomed Intl Ltd. has released its financial results for the nine months ended April 30, 2023.

Q3 highlights

• In March, THC Biomed Ltd. commenced the sales and distribution of its patented American- manufactured Clone Shipper containers in Thailand. Clone Shipper containers are available for purchase from THC Biomed (Thailand) Co. Ltd. via its THC2Go dispensaries. Clone Shipper Ltd. is a profit-making subsidiary of THC Biomed Intl. The innovative Clone Shipper container's patented design enables plants, especially clones or young plants, to be shipped safely and all the while nurturing the plant in the growing process. The container is built to last for multiple shipments. The latest innovations include a new opaque lid and an LED light that lasts for 100 hours or longer.
• In April, the company's affiliate, THC Biomed (Thailand) Co., began retail medical sales in the dispensary in Thailand.

Highlights subsequent to April 30, 2023

• The company's largest customer, the Province of B.C., discontinued skews for the company's gummies and prerolls which affected sales for Q3. This caused the company to re-establish new skews for these products and sales have resumed.
• Management has made a decisive strategic restructuring of operations going forward focusing on service expansion. The company now offers comprehensive assistance to microproducers seeking entrance into the lucrative cannabis sector. In the wake of the company's shift to edibles and drinks as its main products, THC Biomed Ltd. has available grow space in its licensed Kelowna, B.C., facility. This space will be leveraged to offer turnkey operations for microproducers, inclusive of a licensed grow space and consulting services covering all facets of cannabis production, from growth to extraction, distribution and sales. As a result of this restructuring, some units have been earmarked to be sold as commercial units in the Acland Road business park. Microproducers utilizing THC's services will gain from the company's existing licence, in-house processing and established distribution networks. THC Biomed Ltd. will also assist these new microproducers in applying for a B.C. farmgate licence, facilitating non-medical cannabis product sales from stores located at cultivation sites.
• On June 29, 2023, the THC Kiss Mango Beverage Shot was No. 3 and THC Kiss Guava Beverage Shot was No. 4 on the bestselling beverages list on the Ontario Cannabis Store website.
• On June 29, 2023, the THC Kiss Mango Beverage Shot was No. 2 on the B.C. Cannabis Store website.

Management comment

"Transitioning to edibles and drinks, coupled with our Clone Shipper sales, we now have space to accommodate a few microproducers," stated John Miller, chief executive officer of THC Biomed. "This new direction allows us to contribute to the growing trend toward microproducers in the Canadian cannabis market, aiding newcomers in navigating market entry barriers. As a result of the more streamlined process with edibles and drinks production, some units have been earmarked to be sold as commercial units in the Acland Road business park. Microproducers utilizing THC's services will gain from the company's existing licence, in-house processing and established distribution networks. THC Biomed Ltd. will also assist these new microproducers in applying for a B.C. farmgate licence, facilitating non-medical cannabis product sales from stores located at cultivation sites."

All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. This news release is intended to be read in conjunction with the company's condensed interim consolidated financial statements and management's discussion and analysis for the six months ended Jan. 31, 2023, and 2022, which has been filed on SEDAR.

About THC Biomed Intl Ltd.

THC Biomed is one of Canada's oldest active licensed cannabis companies. It was first licensed to deal with cannabis in 2013 under a Health Canada Section 56 exemption under the Controlled Drugs and Substances Act and has been a licensed producer under the current regime since 2016. Its product focus is on high-quality, high-potency beverages and edibles. THC Biomed is a Cannabis Act licensed producer of medical and recreational cannabis. It is licensed to cultivate and sell dried, extract, edible and topical cannabis. The company is on the leading edge of scientific research and the development of products and services in the medical and recreational cannabis industry. Management believes THC Biomed is well positioned to be in the forefront of this industry.

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