Mr. Paul Antoniadis reports

GOOD NATURED PRODUCTS INC. ANNOUNCES CLOSING OF $5 MILLION BROKERED PRIVATE PLACEMENT WITH PARTICIPATION OF STRATEGIC INVESTOR AND INSIDERS

Good Natured Products Inc. has closed its previously announced brokered private placement. Pursuant to the offering, the company issued 35,714,285 units of the company at a price of 14 cents per unit for aggregate gross proceeds of approximately $5-million.

Beacon Securities Ltd. and Integral Wealth Securities Ltd. acted as co-lead agents and joint bookrunners on behalf of a syndicate of agents including PI Financial Corp.

Each unit consists of one common share in the capital of the company and one common share purchase warrant of the company. Each warrant entitles the holder thereof to acquire one common share at an exercise price per warrant share of 19 cents for a period of 30 months from the closing of the offering.

The agents received a cash commission of $210,525 and 1,503,750 compensation options. Each compensation option shall entitle the holder thereof to acquire one common share of the company at the issue price for a period of 30 months from the date hereof. The company has also paid the agents a corporate finance fee of $79,000, plus applicable taxes, and issued to the agents 567,679 corporate finance fee compensation options, to purchase an equal number of common shares at the issue price for a period of 30 months from the date hereof.

The net proceeds of the offering are expected to be used by the company for working capital to support organic growth initiatives and strategic acquisitions. The offering remains subject to a number of customary conditions, including the final approval of the TSX Venture Exchange.

Notably, an existing strategic investor subscribed as the lead order in the offering, for a total of 21,428,570 units and total gross proceeds of $3-million. Upon completion of the offering, the strategic investor owns approximately 12.94 per cent of the issued and outstanding common shares of the company on a non-diluted basis.

Insiders of the company prior to closing the offering subscribed for a total of 779,000 units for total gross proceeds of $109,060 under the offering. Participation by insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the offered shares issued to such related parties nor the consideration paid by such related parties exceeded 25 per cent of the company's market capitalization. The company did not file a material change report in respect of the related party transaction 21 days prior to the closing of the offering as the details of the participation of insiders of the company had not been confirmed at that time. Further details will be provided in a material change report to be filed by the company subsequent to the dissemination of this press release.

The units issued under the offering were issued by way of the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions and are not subject to resale restrictions pursuant to applicable Canadian securities laws or the policies of the TSX-V other than units issued to certain officers and directors of the company that are subject to TSX-V mandated hold period. In connection with the listed issuer financing exemption, the company filed an offering document dated June 8, 2023, on SEDAR under the company's profile and on the company's website.

About Good Natured Products Inc.

Good Natured is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products that use more renewable materials, less fossil fuel and no chemicals of concern.

Good Natured offers over 400 products and services through wholesale, direct-to-business and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.

We seek Safe Harbor.