Mr. Zohar Krivorot reports

CANNARA PROVIDES UPDATE ON ITS 2024 ANNUAL GENERAL MEETING MATERIALS AMID CANADA POST STRIKE

Cannara Biotech Inc. will be relying on CSA Coordinated Blanket Order 51-913 for an exemption from the requirements to send proxy-related materials for its upcoming annual general meeting to be held on Jan. 30, 2025, at 11 a.m. Montreal time, due to the current delays and suspension of mail service in Canada as a result of the nationwide strike of the Canadian Union of Postal Workers that commenced on Nov. 15, 2024.

Access to documents

The proxy-related materials are available under the company's profile on SEDAR+ or on Cannara's website.

Date and time of the meeting

The meeting will be held a virtual-only format, which will be conducted via live audio webcast and teleconference.

To join the meeting via teleconference, please dial 1-438-797-4001 (Canada) or 1-650-479-3208 (United States) and use meeting code 26369529781 and passcode LOVE2025 (56832025 when dialling from a phone or video system). Shareholders accessing the meeting via teleconference will not be able to vote or speak at the meeting. To vote or speak at the meeting, shareholders will need to join the webcast and utilize the chat function during the meeting. A moderator will be present to allow shareholders to vote or speak at the meeting at the appropriate time.

Meeting matters

In addition to receiving the corporation's consolidated financial statements for the fiscal year ended Aug. 31, 2024, and the related auditor's report, shareholders will be invited to vote on the following items at the meeting:

1. To determine the number of directors and to elect the directors to serve until the company's next annual general meeting;
2. To appoint MNP LLP as the auditor of the company for the ensuing year and to authorize the directors of the company to fix the remuneration to be paid to the auditor for the ensuing year;
3. To consider and, if thought fit, to pass an ordinary resolution to approve the company's stock option plan, amended, the whole as described in the accompanying management information circular;
4. To consider and, if thought fit, to pass an ordinary resolution to approve the company's restricted share unit compensation plan, the whole as described in the accompanying management information circular;
5. To transact such other business as may properly come before the meeting or any adjournment or postponement thereof.

CSA Coordinated Blanket Order 51-913

Recognizing that postal strike may impact a reporting issuer's ability to deliver proxy-related materials to all shareholders, the Canadian Securities Administrators (CSA) published on Dec. 4, 2024, Coordinated Blanket Order 51-931, Temporary Exemption from requirements in National Instrument 51-102, Continuous Disclosure Requirements, and National Instrument 54-101, Communication with Beneficial Owners of Securities of a Reporting Issuer, to send certain proxy-related materials during a postal strike, providing temporary relief from the requirement to deliver proxy-related materials for annual meetings.

The conditions in Blanket Order 51-931 include a requirement that each of the matters at the meeting would be considered an annual matter. Cannara confirms that it has complied with all conditions of this exemption.

Assistance

Shareholders of the company are encouraged to access the proxy-related materials directly through the above-mentioned websites, and registered shareholders and non-objecting beneficial shareholders may contact the company's transfer agent, Computershare Investor Services Inc., by calling toll-free, within North America, 1-866-962-0498 or direct, from outside of North America, 514-982-8716, to request copies of the proxy-related materials, or 1-800-564-6253 or direct, from outside of North America, 514-982-7555, to request voting control numbers for voting on-line. Objecting beneficial shareholders should contact their broker to request their voting instruction forms, voting control numbers and instructions for voting.

In the event that the postal strike ends prior to the meeting, the company will mail the proxy-related materials in the normal course, but there can be no assurance that the proxy-related materials will be received by the shareholders prior to the meeting.

About Cannara Biotech Inc.

Cannara is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two megafacilities based in Quebec spanning over 1.65 million square feet, providing the company with 100,000 kilograms of potential annualized cultivation output. Leveraging Quebec's low electricity costs, Cannara's facilities produce premium-grade cannabis products at an affordable price.