Mr. John Campbell reports

BEVCANNA ANNOUNCES NON-BROKERED PRIVATE PLACEMENT AND PROVIDES CORPORATE UPDATE

Bevcanna Enterprises Inc. has arranged a non-brokered private placement of up to 590,000 common shares of the company at a price of $1.50 per common share for aggregate gross proceeds of up to approximately $885,000, subject to minimum offering of at least $500,000.

There is an offering document related to the offering that can be viewed under the company's profile at SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.

The common shares offered in the offering shall be offered to purchasers in British Columbia and Ontario pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the Listed Issuer Financing Exemption). Common shares offered under the listed issuer financing exemption will not be subject to resale restrictions for Canadian resident investors pursuant to applicable Canadian securities laws.

The company has not engaged any dealers or finders in connection with the offering. While the company does not anticipate paying any finders' fees with respect to the offering, finders' fees may be payable to eligible arm's-length finders or dealers in the event a subscriber in the offering is introduced through an arm's-length finder who is eligible to receive a fee or commission in accordance with Canadian Securities Exchange policies and applicable securities laws.

As disclosed in the offering document, the company intends to use the net proceeds from the offering to finance relaunching its Trace brand water products in Canada, expanding the distribution market of its Trace brand water products to Asia and launching its nutraceutical health product e-commerce platform through its wholly owned subsidiary Naturally Pure Therapy Products Corp. and for general working capital purposes.

Closing of the offering remains subject to certain conditions, including, but not limited to, completion of a minimum offering, the receipt of all necessary regulatory and other approvals, including the company's completion of its filing obligations under the policies of the CSE. The company expects to close the offering on or about May 10, 2024, or on any other such date as the company may determine.

Corporate update

Naturally Pure Therapy Products Corp.

The company is also pleased to announce that it intends to sell a range of proprietary nutraceutical health products on its e-commerce platform in the United States through its wholly owned subsidiary, Pure Therapy. Product segments cover life longevity, heart health, sleep health, brain support, beauty, general wellness and natural slimming. With an extensive catalogue of premium-grade proprietary formulations, all products under the Pure Therapy umbrella are manufactured in good manufacturing practice certified facilities and independently tested for purity.

Balance sheet improvements

The company is also pleased to announce that it continues to prioritize improving its balance sheet. As disclosed in the offering document, the company expects to complete various corporate actions to improve its balance sheet by decreasing or restructuring current liabilities concurrent with the offering. A summary of the plans of the company is as follows:

• The company's wholly owned subsidiary, Naturo Group Enterprises Inc., anticipates closing an additional tranche of promissory notes pursuant to its secured promissory note private placement in May, 2024, for gross proceeds of approximately $400,000. The company has previously raised $1,382,065 pursuant to the note offering. For additional details regarding the note offering, please refer to the company's previously disclosed news releases dated Jan. 22, 2024, Jan. 29, 2024, and Feb. 23, 2024, among others.
• The company has arm's-length and related-party debt outstanding, and the company anticipates that the parties will convert their outstanding debt into common shares in May, 2024. In addition, the company anticipates that subscribers of the notes will convert their outstanding notes into equity in May, 2024.
• The company has short-term mortgage and secured convertible debenture obligations, and it is currently engaged in discussions with an arm's-length financial institution with the expectation of replacing the existing short-term mortgages with a long-term mortgage (three-year term).
• In 2023, the company filed for voluntary bankruptcy of its wholly owned and majority owned subsidiaries Bevcanna Operating Corp. and Naturo Springs Ltd., respectively, and it intends to file for voluntary bankruptcy for its wholly owned subsidiaries, Embark Health Inc., Embark Delta Inc. and Embark Nano Inc. by the end of May, 2024.

About Bevcanna Enterprises Inc.

Bevcanna (Canadian Securities Exchange: BEV, OTC: BVNNF and Frankfurt Stock Exchange: 7BC) is a diversified lifestyle and wellness consumer packaged goods company. Bevcanna develops and manufactures a range of alkaline, mineralized and cannabinoid beverages and supplements for both in-house brands and white-label clients.

Based in British Columbia, Canada, Bevcanna owns a pristine alkaline spring water aquifer and a high-capacity 40,000-square-foot Health Canada and hazard analysis and critical control point certified flexible manufacturing facility in Osoyoos, B.C. The company's extensive distribution network includes traditional and regulated retail distribution and on-line through its market-leading brands.

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