Mr. Irwin Simon reports

TILRAY BRANDS ANNOUNCES STRATEGY TO STRENGTHEN CANADIAN CANNABIS OPERATIONS AND DRIVE PROFITABLE GROWTH

Tilray Brands Inc. plans to consolidate its Canadian cannabis operations, transitioning cultivation and preroll production from its Foss facility in Fenwick, Ont., to its Masson, Que., and Cayuga, Ont., facilities. This strategic initiative is expected to generate approximately $10-million (U.S.) in annualized cost savings by the end of fiscal 2028. The transition of cultivation to Masson, a state-of-the-art cannabis cultivation facility with higher yields and lower operating costs, is expected to further improve operating efficiency and increase profitability.

Irwin D. Simon, chairman and chief executive officer of Tilray Brands, stated: "We have built one of the largest and most sophisticated cannabis operating platforms in Canada. Now, our focus is on unlocking its full value. These actions reflect our commitment to operating with greater efficiency, financial discipline and a clear focus on profitability. By leveraging the scale and infrastructure we have already established, we expect to lower our cost structure, expand margins and generate stronger cash flow, while maintaining the capacity and quality to serve the growing demand in Canada and international markets. We are making deliberate decisions to strengthen our competitive position, maximize returns on our investments and deliver sustainable long-term value for our shareholders."

Blair MacNeil, president of Tilray Canada, stated: "We are taking decisive steps to build a more efficient, competitive and profitable Canadian cannabis business. Greater-than-expected yields at Masson, together with increased yields across the rest of our Canadian cultivation operations, give us greater flexibility to optimize production, reduce costs and invest behind the growth of our leading brands. This stronger operating platform positions us to respond to evolving consumer demand and capture growth opportunities in Canada and internationally where we expect to ship more than eight metric tonnes of cannabis this fiscal year. The size of the Foss facility limited the number of strains we could efficiently manage. Transitioning cultivation to Masson gives us greater expected flexibility to expand our strain offerings and drive greater innovation across the Redecan portfolio."

Mr. MacNeil continued: "Redecan remains an important part of our brand portfolio, and we are focused on driving its continued growth while maintaining the product quality and reliable supply that our consumers, retailers and provincial partners expect. We have also offered affected Foss employees opportunities at other Tilray facilities. This transition strengthens our business for the long term while supporting our brands, our customers and our people."

Strengthening Tilray's Canadian cannabis platform

Tilray continues to operate one of Canada's largest and most advanced cannabis cultivation and manufacturing platforms, with increased yields across its Canadian operations driving greater asset utilization and operational efficiency while supporting domestic demand and international growth opportunities.

The company's extensive Canadian footprint spans 4.2 million square feet of cultivation capacity across its flagship Aphria One and Aphria Diamond facilities in Leamington, Ont., outdoor cultivation operations in Cayuga, Ont., its Masson facility in Quebec, and Broken Coast operations in British Columbia. Together, these facilities provide significant production scale, advanced cultivation capabilities and the flexibility to serve multiple markets.

Building on prior investments in cultivation capacity and infrastructure, Tilray will consolidate cultivation operations from Foss into Masson and preroll production into Cayuga. Through further optimization and greater than expected yields, Masson can increase annual cultivation capacity from approximately 32.5 to 50 metric tonnes, providing added flexibility to meet demand. Masson is expected to reestablish its prior EU-GMP (European Union good manufacturing practice) certification in calendar 2027, expanding its ability to serve international medical cannabis markets. As regulatory frameworks evolve, the Masson facility's increased capacity and capabilities also provide Tilray with the flexibility to serve potential future demand in the United States and other markets.

This consolidation is designed to eliminate redundant costs, improve capacity utilization and strengthen margins while preserving Tilray's production capabilities, product quality and reliable supply. The initiative reinforces Tilray's strategy of leveraging its established infrastructure to drive stronger financial performance and capitalize on opportunities across Canadian and international cannabis markets.

Prerolls represent approximately one-third of Tilray's Canadian adult-use sales and grew 28 per cent in fiscal 2026. Consolidating production at Cayuga will further leverage existing infrastructure, improve operating efficiencies and provide scalable capacity to support continued demand in this important category.

The transition will be implemented in phases to complete current cultivation and harvest cycles, with Foss operations expected to conclude by Jan. 31, 2027. Tilray expects uninterrupted supply across its brand portfolio throughout the transition, including continued availability of Redecan products, while evaluating opportunities to maximize the value of the Foss asset.

Raising fiscal 2027 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance

Tilray is raising the lower end of its fiscal 2027 adjusted EBITDA guidance and now expects adjusted EBITDA of $70-million to $75-million, compared with its previous guidance of $68-million to $75-million. The increased outlook reflects the company's continued focus on operational efficiency and profitability, including anticipated benefits from cost-reduction initiatives currently under way. The company expects to achieve the full $10-million (U.S.) annualized savings run rate from its Canadian cannabis consolidation initiative beginning in fiscal 2028.

About Tilray Brands Inc.

Tilray Brands is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness and entertainment elevating lives through moments of connection. Tilray's mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray's unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods and craft beverages.

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