Mr. Michael Mills reports

BODY AND MIND ANNOUNCES Q2 2023 FINANCIAL RESULTS

Body and Mind Inc. has released its financial results for the second quarter of fiscal year 2023 ended Jan. 31, 2023, and provided shareholders with an operational update. All financial information is provided in United States dollars unless otherwise indicated.

Q2 2023 (ended Jan. 31, 2023) and subsequent highlights:

• Advanced tenant improvement construction on the first of two Illinois adult-use dispensaries. The dispensary is located within the largest retail mall in Markham, Ill., which has average daily traffic counts of more than 400,000 cars per day within a mile of the project location, and the company projects that its first retail sale will occur in April, 2023.
• Closed a merger with CraftedPlants N.J. Inc., an entity that holds a lease on a New Jersey commercial property with local cannabis-use approval, for a retail location with nearly all merger consideration tied to successful completion of specific licensing and operational milestones (see the company's Dec. 22, 2022, press release for further details).
• Submitted New Jersey state licence application in conjunction with BaM Body and Mind Dispensary N.J. Inc., formerly known as CraftedPlants N.J. Inc. Commenced design, architectural and planning work for the New Jersey location.
• Began selling Body and Mind-branded vape cartridges in Arkansas.

Management commentary

"Our most recent quarter reflects improvement in wholesale pricing in Nevada and wholesale growth in Ohio as we focus on development of the new Illinois and New Jersey dispensaries," stated Michael Mills, chief executive officer of Body and Mind. "Construction at our new Illinois dispensary in Markham is more than 90 per cent complete and we are on track to open in the next month as we leverage dispensary opening and operational experience from multiple markets. In Arkansas, we expanded Body and Mind-branded product offerings with new Body and Mind-branded vape cartridges joining our wide existing product offerings, including craft flower and concentrates."

Q2 2023 financial highlights:

• Revenues for Q2 2023 were $7.7-million, a slight decrease over Q1 2023 revenues of $7.8-million;
• Gross profit of $2.26-million for Q2 2023 compared with a gross profit of $1.6-million for Q1 2023;
• Q2 2023 net operating loss was $1.8-million compared with Q1 2023 net operating loss of $2-million. Net operating income was primarily impacted by increased business development expenses related to Illinois and New Jersey, licence applications and new operation start up expenses. An increase in wholesale flower pricing in Nevada in Q2 improved both the gross profit and net operating loss;
• Q2 2023 net loss was $2.7-million (or basic and diluted loss per share of two cents) compared with Q1 2023 net loss of $3-million (or basic and diluted loss per share of three cents);
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $1.3-million for Q2 2023 versus adjusted EBITDA loss of $1.6-million for Q1 2023;
• Total current assets were $8.1-million, total assets were $32.6-million, total current liabilities were $8.5-million and total liabilities were $27.6-million at Jan. 31, 2023.

The company had 146,636,974 common shares outstanding as of Jan. 31, 2023.

For further details, please see the company's recent Form 10-Q filing on EDGAR and the interim financial statements filed on SEDAR.

About Body and Mind Inc.

Body and Mind is an operations-focused cannabis company with active retail operations in Ohio, Arkansas, Michigan and California, pending retail operations in Illinois and New Jersey, and craft cultivation and/or processing operations in Nevada, Ohio and Arkansas. The company works daily to increase its market share through delighting customers while also continuing to hone its operational efficiencies to drive profits. Body and Mind is primarily guided by the metric of return on investment. Currently, it believes the most significant return on investment projects in front of the company are successful retail cannabis store launches in Illinois and New Jersey, which augment its existing retail footprint. Body and Mind also believes that its team's core operational skill sets will create significant future shareholder value as the cannabis industry matures.

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