Mr. Kellen O'Keefe reports

FLOWER ONE ANNOUNCES RECEIPT OF USD$5M LOAN

Flower One Holdings Inc. has received a $5-million loan from RB Loan Portfolio II LLC. All amounts are expressed in U.S. dollars unless indicated otherwise.

"This capital infusion will enable us to complete the first phase of capital expenditures and provide working capital to the business. We are grateful for the runway this will provide as we work towards our goal of achieving positive cash flow," said Kellen O'Keefe, President & CEO of Flower One.

The Company and certain of its subsidiaries are parties to an existing loan agreement with the Term Lender with respect to the Company's existing $45.65M term debt (the "Term Debt"), secured by the facility at 3950 N. Bruce St., North Las Vegas, Nevada. The Company's receipt of the Loan was facilitated by the assignment to an insider of the Company, of a portion of the interest owing in the Term Debt from the Term Lender in the amount of $5M. The Loan has made an additional $5M available to the Company with respect to the Term Debt. The maturity date of the Term Debt is June 30, 2023.

The Company has determined that the Loan is exempt from the formal valuation and minority approval requirements applicable to related party transactions under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") pursuant to the financial hardship exemptions set forth in Sections 5.5(g) and 5.7(1)(e) of MI 61-101.

"We have been working diligently with our lenders to find solutions that position Flower One for future success. Our goal is to ensure we have the appropriate capital structure that enables the Company to deliver growth and shareholder value over the long term," said Araxie Grant, CFO of Flower One.

About Flower One Holdings Inc.

Flower One is the largest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. By combining more than 20 years of greenhouse operational excellence with best-in-class cannabis operators, Flower One offers consistent, reliable, and scalable fulfillment to a growing number of industry-leading cannabis brands (Cookies, Kiva, Old Pal, Heavy Hitters, Lift Ticket's, The Clear, HUXTON, and Flower One's leading in-house brand, NLVO, and more). Flower One currently produces a wide range of products from flower, full-spectrum oils, and distillates to finished consumer packaged goods, including a variety of: pre-rolls, concentrates, edibles, topicals, and more for top-performing brands in cannabis. Flower One's Nevada footprint includes the Company's flagship facility, a 400,000 square-foot high-tech greenhouse and 55,000 square-foot production facility, as well as a second site with a 25,000 square-foot indoor cultivation facility and commercial kitchen. Flower One has built an industry-leading team focused on making high-quality cannabis accessible to all.

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