Ms. Anne Fitzgerald reports

SNDL AND NOVA CANNABIS ANNOUNCE ASSIGNMENT OF DUTCH LOVE STORES TO NOVA CANNABIS AND EXTENSION OF CREDIT FACILITY

SNDL Inc. has agreed to assign its rights to own or operate four Dutch Love stores to Nova Cannabis Inc.

"SNDL remains committed to strengthening Nova's retail position and the sustainability of its capital structure, as underscored by the extension of the credit facility," said Zach George, CEO of SNDL. "The assignment of four well-located cannabis retail stores to be owned or operated by Nova creates an opportunity for Nova to open its first Value Buds branded locations in British Columbia and highlights the benefit of SNDL's M&A pipeline."

Pursuant to the Assignment, Nova shall issue to SNDL $8.179 million of Nova shares based on the 20-day VWAP of the Nova shares on March 28, 2024. The closing of the transactions contemplated by the Assignment are subject to customary closing conditions, including the approval of the Toronto Stock Exchange ("TSX") for the listing of the Nova shares issuable to SNDL, court approval and all other regulatory approvals, and is anticipated to close by the end of April 2024. The addition of the Dutch Love Stores is expected to bring Nova's total store count to 100 and SNDL's direct and indirect cannabis store count across all retail banners to 190.

SNDL has also extended the maturity date of the $15 million revolving credit facility (the "Revolving Credit Facility") with Nova for an additional 24 months, to March 31, 2026, and has amended the Revolving Credit Facility to remove SNDL's right to demand repayment prior to the maturity date, subject to certain conditions.

"The updates announced further solidify SNDL's continued support of Nova's growth trajectory," said Anne Fitzgerald, lead independent director of Nova. "We will continue to collaboratively pursue avenues that support Nova's expansion and optionality with our partners at SNDL."

Advisors

McCarthy Tetrault LLP is acting as legal counsel to SNDL. Bennett Jones LLP is acting as legal counsel to Nova.

This news release constitutes a "designated news release" for the purposes of the prospectus supplement of Nova Cannabis Inc. dated July 22, 2022, to its short form base shelf prospectus dated June 27, 2022.

ABOUT NOVA CANNABIS INC.

Nova Cannabis Inc. (TSX: NOVC) is one of Canada's largest and fastest-growing cannabis retailers with a goal of disrupting the cannabis retail market by offering a wide range of high-quality cannabis products at every-day best value prices. Nova currently owns and/or operates 96 locations across Alberta, Ontario, and Saskatchewan, primarily under its "Value Buds" banner.

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