An anonymous director reports

CANNARA ANNOUNCES PROPOSED SHARE CONSOLIDATION

Cannara Biotech Inc. has provided details of its proposal to consolidate all of the issued and outstanding common shares of the company on the basis of 10 preconsolidation common shares for every one postconsolidation common share, subject to the approval of shareholders at the coming meeting of shareholders to take place on Jan. 25, 2023, as well as TSX Venture Exchange approval.

Currently, the company's authorized share capital is an unlimited number of common shares without par value, of which 877,481,321 shares are issued and outstanding, with a further 45,107,450 shares reserved for issuance upon the exercise of existing stock options.

The board of directors believes that the share consolidation will provide the company with greater flexibility in developing its plans.

The company does not intend to undergo a name change in conjunction with the proposed consolidation.

Upon completion of the share consolidation, it is expected that there will be approximately 87,748,132 common shares issued and outstanding, subject to adjustment for fractional shares. The number and exercise price of all stock options will be adjusted in accordance with the consolidation ratio.

About Cannara Biotech Inc.

Cannara Biotech is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two megafacilities based in Quebec spanning over 1.65 million square feet, providing the company with 125,000 kilograms of potential annualized cultivation output. Leveraging Quebec's low electricity costs, Cannara's facilities produce premium-grade cannabis products at an affordable price.

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