Mr. Kellen O'Keefe reports

FLOWER ONE OBTAINS MEETING ORDER UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT (CANADA)

The Supreme Court of British Columbia has granted an order, which, among other things, authorizes Flower One Holdings Inc. and its Canadian subsidiaries Flower One Corp. and FO Labour Management Ltd. to present a plan of compromise, arrangement and reorganization of the Canadian companies to their affected creditors at a meeting on Dec. 19, 2022, at 2 p.m. PST.

Provided the plan receives the requisite approvals at the meeting and by the court and is implemented in accordance with its terms: (i) affected creditors of the Canadian companies will receive a distribution in accordance with the plan; and (ii) Flower One will cease to own the U.S. operations, and the Canadian companies will cease to have any assets, with the expectation that they will each make an assignment into bankruptcy. Accordingly, Flower One will not remain compliant with securities laws and regulations that are applicable to public issuers, and is expected to be delisted from the Canadian Securities Exchange and to be cease traded under applicable Canadian securities laws. The plan does not provide for any distributions to shareholders of Flower One on account of their equity interests.

During this time, the U.S. operations of Flower One are expected to continue in the ordinary course and without interruption.

As previously reported, PricewaterhouseCoopers Inc. has been appointed to act as the Canadian companies' monitor under the CCAA. A copy of the plan, meeting order and meeting materials, including a notice of meeting, may be found on the monitor's website. Any affected creditor wishing to attend the meeting or vote on the plan should review the meeting materials. To attend the meeting, affected creditors must contact the monitor before 9 a.m. on Dec. 19, 2022, as set out in the notice of meeting.

Further information regarding the CCAA proceedings can be obtained by contacting the monitor by e-mail at ca_flowerone@pwc.com or on the monitor's website. Stakeholders are encouraged to review the monitor's website, including the plan, for more information.

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 Ticket's, 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-technology 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 available to all.

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

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