Ms. Emma Andrews reports

NEXTLEAF SHARES A COMMERCIAL UPDATE INCLUDING 12 NEW PRODUCT LISTINGS

Nextleaf Solutions Ltd. has released 12 new product listings nationally across five categories and has permanently appointed Sam Kassem as chief financial officer.

New products and innovation

Nextleaf is pleased to announce 12 new listings across five categories, launching between September, 2024, and early 2025. Currently, the company manufactures 40 products for coast-to-coast distribution to medical and adult-use consumers.

The product pipeline includes a significant expansion into the minor cannabinoid market, with the launch of two new cannabinol softgel SKUs. CBN, often anecdotally referred to as the melatonin of cannabis, is recreationally consumed for its potential sleep-supporting properties.

Additionally, Nextleaf will begin commercializing RSO (Rick Simpson Oil), a high-potency extract that contains a broad spectrum of cannabinoids and plant-based compounds, also known as full spectrum, initially popularized in the prohibition era. The company processes its own RSO ingredients in-house for Glacial Gold and commercial partners, utilizing its multipatented extraction process.

Alongside ingredient innovation, Nextleaf will invest deeper into hardware innovation, rapidly commercializing four all-in-one vape products, which include built-in rechargeable batteries, ready to consume. The company anticipates additional listings within this subsegment throughout fiscal year 2025.

"Convenience is consistently a dominant purchase driver for consumers. We recognize the need for this ready-to-consume subsegment in the vape category, and through our rapid approach to commercialization, we're able to expand our offerings with unparalleled value and speed to market," commented Chris Andrews, vice-president, commercialization.

Ontario (four new listings):

• Glacial Gold Atmosphere Twisted citrus vape, two grams;
• Glacial Gold high-tetrahydrocannabinol Banger AIO vape, one gram (early 2025);
• Miracle Valley Crafty Cuts dried flower, seven grams;
• Miracle Valley Crafty Cuts sampler prerolls five by 0.7 gram.

Alberta (six new listings):

• Glacial Gold high-tetrahydrocannabinol Banger AIO vape, one g;
• Glacial Gold high-tetrahydrocannabinol Banger infused prerolls, three by 0.5 g;
• Glacial Gold Atmosphere Twisted citrus vape, two g;
• Glacial Gold cannabinol to cannabdiol 10 to 10 softgels, 50-pack;
• Glacial Gold CBN to CBD 10 to 10 softgels, 100-pack;
• Glacial Gold THC 10 softgels, 50-pack.

British Columbia (two new listings):

• Glacial Gold RSO full-spectrum five to five softgels, 100-pack;
• Glacial Gold CBN to CBD 10 to 10 softgels, 50-pack.

Brand performance and market insights

According to headset sales data (September, 2024), Glacial Gold was the No. 1 softgel brand in Western Canada, outpacing competitors both in SKU performance and volume of offerings. Glacial Gold has 12 softgel SKUs available in B.C. and Alberta, with additional launches expected.

"Our team is enthusiastic about where consumption trends are headed and to be category leaders steering the conversation. Consumers value having choice, alternative methods of consumption, health-conscious options, high-quality ingredients and all-natural alternatives. Our capabilities are well positioned to capitalize on the opportunity," commented Emma Andrews, chief executive officer.

As part of their strategic efforts to strengthen brand presence and consumer engagement, the company recently participated at Kind Summer Fair in Toronto, Ont., where its Glacial Gold glacial cones and vape bar activation were voted the No. 3 most mentioned by first-time attendees.

"For their first time exhibiting, the team delivered a high-energy, engaging and yet still economical activation. It was no surprise to see the recognition from budtenders," shared Josh Nagel, chief executive officer of Kind Media. "This is a brand to watch."

Commercial strategy

Nextleaf has maintained a focused business model since its inception, through extraction technology and processing. This depth has allowed for specialized training and expertise for staff, and a reputation for exceptionally consistent products and ingredients in market.

The company's aggressive pricing strategy, combined with significant cost savings from in-house production of high-purity ingredients, has contributed to Glacial Gold's growing market share. Approximately 70 per cent of the company's fiscal 2024 year-to-date revenue was generated through its consumer packaged goods strategy.

"Glacial Gold is becoming rapidly known as the go-to brand for value and variety. The versatility of our portfolio ensures there's something for every type of cannabis consumer and consumption occasion, with one trusted producer," shared Ms. Andrews.

Appointment of chief financial officer

Nextleaf's board of directors is pleased to announce the permanent appointment of Mr. Kassem as the chief financial officer. Mr. Kassem has acted as the company's interim CFO since September, 2023.

"Working closely with Sam on the audit committee and board has cemented my confidence in his contributions," shared Fred Bonner, an independent director with the company for the past seven years. "He has gone above and beyond, notably to help guide the company through a pivotal ERP integration project that will undoubtedly help future-proof the operation and our next stage of growth."

About Sam Kassem, BBA, CFA

Mr. Kassem brings a wealth of experience in streamlining financial processes, optimizing cash flow management and enhancing operational efficiencies. With over a decade of experience in the cannabis industry, Mr. Kassem has collaborated with cultivators and processors and played a key role in building a leading technology provider within the sector.

Share issuance

Nextleaf has issued 1,666,667 common shares at a deemed price of nine cents per share for the payment of an amount payable by the company valued at $309,101. The company is pleased in the gain realized on payment of the amount and corresponding gain on settlement.

About Nextleaf Solutions Ltd.

Nextleaf is an innovative cannabis processor and life science firm with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products 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.

With coast-to-coast distribution, Nextleaf brands are sold through both medical and recreational channels, and include acclaimed legacy-era brand Glacial Gold and High Plains Cannabis.

The company has been issued 19 U.S. patents and 75-plus patents globally on cannabinoid processing, including extraction, distillation and acetylation.

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