Mr. Kellen O'Keefe reports

FLOWER ONE OBTAINS EXTENSION OF STAY PERIOD AND CLAIMS PROCESS ORDER UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT (CANADA)

The Supreme Court of British Columbia has, among other things, extended the stay period in Flower One Holdings Inc.'s Companies' Creditors Arrangement Act (Canada) (CCAA) proceeding commenced by each of the Canadian company and its Canadian subsidiaries, Flower One Corp. and FO Labour Management Ltd., to Jan. 16, 2023. The Canadian company also announces that, on Oct. 25, 2022, it obtained an order establishing a claims process to identify and determine claims against the Canadian companies.

The stay extension and the claims process will allow the Canadian company to develop and pursue a sale and/or plan of arrangement that would have the effect of restructuring the Canadian companies' balance sheets and facilitate the injection of additional capital, with a view of Flower One's business going private as soon as reasonably practicable, thereby eliminating the administrative burden and significant expense associated with being a publicly listed company. During this time, the U.S. operations of Flower One are expected to continue in the ordinary course and without interruption.

Pursuant to the claims process order, the Canadian companies will send a claims notice to each known creditor of the Canadian companies, which will set out the claim such creditor has against each of the Canadian companies, according to the records of the Canadian companies. If a creditor agrees with its claim as set out in the claims notice, no further action is required. Any creditor that: (i) disputes the claim set forth in the claims notice; (ii) wishes to assert a claim against any director or officer of the Canadian companies; (iii) wishes to assert a restructuring claim; or (iv) does not receive a claims notice but wishes to assert a claim against any of the Canadian companies or any of their directors or officers, must submit a proof of claim with the monitor (defined as follows) by no later than 4 p.m. PST on Monday, Nov. 14, 2022, or the restructuring claims bar date (as defined in the claims process order), all in accordance with the terms of the claims process order. A copy of the claims process order, along with all schedules attached thereto, can be found at the monitor's website.

As previously reported, PricewaterhouseCoopers Inc. has been appointed to act as the Canadian companies' monitor under the CCAA. Further information regarding the claims process and copies of the documents and forms referenced therein are available at the monitor's website. Further information regarding the CCAA proceedings can be obtained by contacting the monitor by email at ca_flowerone@pwc.com.

About Flower One Holdings Inc.

Flower One is the largest cannabis cultivator, producer and full-service brand fulfilment 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 fulfilment to a growing number of industry-leading cannabis brands (Cookies, Kiva, Old Pal, Heavy Hitters, Lift Tickets, 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 prerolls, concentrates, edibles, topicals and more -- for top-performing brands in cannabis. Flower One's Nevada footprint includes its flagship facility, a 400,000-square-foot high-tech greenhouse and a 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.

The Canadian company's common shares are traded on the Canadian Securities Exchange under the Canadian company's symbol, FONE, and on the Frankfurt Stock Exchange under the symbol F11.

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