Ms. Emma Andrews reports

NEXTLEAF SOLUTIONS ANNOUNCES MARKET EXPANSION THROUGH WHOLESALE DISTRIBUTION AGREEMENT FOR MANITOBA AND THE NORTHERN TERRITORIES, ALONGSIDE ROBUST LINE-UP OF NATIONAL PRODUCT LAUNCHES IN SPRING 2024

Nextleaf Solutions Ltd. has signed a strategic wholesale distribution agreement with Lineage Distribution, a licensed cannabis processor and distributor based in Niverville, Man. This agreement signifies Nextleaf's commitment to expanding its market presence into Manitoba and the northern territories, offering consumers access to its acclaimed Glacial Gold and High Plains branded cannabis products.

Under the terms of the agreement, Lineage will exclusively distribute Nextleaf's complete product catalogue of over 35 SKUs (stock-keeping units) across four initial categories, including CBD (cannabidiol) and THC (tetrahydrocannabinol) vapes, drops/oils, infused prerolls and soft gels. The agreement encompasses the province of Manitoba, the Northwest Territories, Nunavut and Yukon.

Graham Taylor, president of Lineage Distribution, stated: "As locals, we understand our market well and recognized that Nextleaf's Glacial Gold and High Plains branded products deliver high quality and a competitive price point. As cost-conscious consumers, Manitobans will resonate with these attributes. We're excited about creating value for retailers too as they can command great margins by offering Nextleaf products to their customers."

With Manitoba being home to more than 200 authorized adult-use cannabis retail stores serving approximately 1.4 million people and the northern territories boasting a combined 16 retail stores considered destination shops, Nextleaf is well positioned for significant market penetration and growth.

Emma Andrews, interim chief executive officer at Nextleaf, commented: "Our vision is to ensure all Canadians have access to unparalleled value and diverse product formats. We are excited to debut our brands in the northern territories and bolster our presence in Manitoba through our partnership with Lineage, driving investor value and market expansion. Delivering in-market support through a dedicated and reputable local partner will help drive sales growth and enhance awareness for our extensive lineup of new products slated for release this spring."

New product launches for spring 2024

In addition to market expansion initiatives, Nextleaf announces the launch of new product offerings in the spring of 2024 by entering the infused preroll category under its Glacial Gold and High Plains brands. These innovative products cater to consumers seeking high-potency and differentiated experiences.

Glacial Gold Max THC Double D infused prerolls feature high-potency whole dried flower infused with premium botanically flavoured distillates and spiked with THCA (tetrahydrocannabinolic acid) diamonds. They contain 44-per-cent to 48-per-cent THC content, with up to 1,000 milligrams of THC per package.

High Plains 1,000-milligram THC Triple infused prerolls feature high-potency whole dried flower infused with a blend of live ice hash rosin, premium flavoured distillate and THCA diamonds. This potent mix provides a 44-per-cent to 48-per-cent THC content with up to 1,000 milligrams of THC per package.

"Consumers are consistently seeking high-potency offerings and differentiated products. As part of our innovation pipeline, we are continuously validating opportunities to commercialize our high-purity distillate across multiple categories and formats to gain additional market share for our brands," shared Ms. Andrews.

Nextleaf will also introduce large-format 100-pack soft gels to Ontario and Alberta, offering three distinct potencies: CBD 50 milligrams, balanced 10 milligrams/10 milligrams and THC 10 milligrams. Recent sales data from Headset underscore the growth of the Glacial Gold brand, fuelled by its success in the soft gel category.

The following is a full list of all new product listings and national availability over the next three months.

Ontario

New listings:  11

Total provincial listings:  21

1. Glacial Gold balanced 10:10 soft gels -- 100-pack;
2. Glacial Gold CBD 50 soft gels -- 100-pack;
3. Glacial Gold balanced 10:10 soft gels -- 10-pack;
4. Glacial Gold High THC Banger 1.0-gram vape cartridge;
5. Glacial Gold Max THC Grape Escape 1.2-gram vape cartridge;
6. Glacial Gold Max THC Grape Escape Double D infused prerolls (three pieces; 0.7 gram per piece);
7. Glacial Gold Max THC Cherry K.O. Double D infused prerolls (three pieces; 0.7 gram per piece);
8. High Plains 1,000-milligram THC Pink Kryptonite Triple infused prerolls (three pieces; 0.7 gram per piece);
9. Glacial Gold Max balanced 30:30 drops (35 millilitres);
10. High Plains 1,000-milligram THC indica oil drops (35 millilitres);
11. High Plains 2,000-milligram balanced oil drops (35 millilitres).

Alberta

New listings:  six

Total provincial listings:  16

1. Glacial Gold balanced 10:10 soft gels -- 100-pack;
2. Glacial Gold CBD 50 soft gels -- 100-pack;
3. Glacial Gold Max THC Blueberry Dream 1.2-gram vape cartridge;
4. Glacial Gold Max THC Grape Escape Double D infused prerolls (three pieces; 0.7 gram per piece);
5. Glacial Gold Max THC Cherry K.O. Double D infused prerolls (three pieces; 0.7 gram per piece);
6. Glacial Gold Max balanced 30:30 drops (35 millilitres).

British Columbia

New listings:  three

Total provincial listings:  21

• Glacial Gold Max THC Blueberry Dream 1.2-gram vape cartridge;
• Glacial Gold Max THC Grape Escape Double D infused prerolls (three pieces; 0.7 gram per piece);
• Glacial Gold Max THC Cherry K.O. Double D infused prerolls (three pieces; 0.7 gram per piece).

Nova Scotia

New listings:  one

Total provincial listings:  two

• Glacial Gold Anytime 1:1 Berry Lemonade 1.0-gram vape cartridge.

Saskatchewan

Total provincial listings:  entire catalogue of more than 35 SKUs

Manitoba/Yukon/Northwest Territories/Nunavut

Total provincial listings:  entire catalogue of more than 35 SKUs

About Nextleaf Solutions Ltd.

Nextleaf is an innovative cannabis processor with a portfolio of federally regulated emerging consumer brands, market-validated cannabis derivative products, and high-purity and high-potency bulk ingredients. Nextleaf's multipatented, highly automated, closed-loop extraction and distillation technology sets the global standard for processing cannabis at scale.

The company currently manufactures over 80 different products across four categories for white-label clients and house brands. Formulated products and bulk ingredients are sold domestically to B2B (business-to-business) partners and exported to applicable international jurisdictions.

With coast-to-coast distribution, Nextleaf brands are sold through both medical and recreational channels and include award-winning legacy-era brand Glacial Gold, offering unparalleled value across multiple formats, including high-purity and high-potency vapes, oils, soft gels and infused prerolls. Additionally, newly launched house brand High Plains offers a broader assortment of cannabinoids and plant compounds, reaching additional market segments.

Nextleaf's commitment to constant innovation and speed-to-market advantage is guided by its team's unique depth of industry experience, complemented by its Health Canada research licence allowing for unique sensory evaluation of cannabis through human trials, and rapid prototyping. The company has been issued 19 U.S. patents and more than 75 patents globally on cannabinoid processing, including extraction, distillation and acetylation.

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