Bedrocan Announces Lease Extension And $2 Million Production Facility Loan

Bedrocan Cannabis Corp. (BED.V) (the “Company“) is pleased to announce that it has agreed with the landlord (the “Landlord“) of its 52,000 square foot production facility to extend the previous five-year term of its existing operating lease to a total of ten years, ending on August 31, 2024 (subject to increase based on the rate of inflation for years six through ten) with an option to renew for an additional five-year term, pursuant to an amended and restated operating lease agreement (the “Amended Lease Agreement“) entered into today. The Company also announces that is has received a $2,000,000 loan (the “Loan“) from the Landlord. The Landlord is a related party of the Company.

The funds for the Loan are being obtained by the Landlord from a third-party lender (the “Lender“), and the Company has agreed to provide a guarantee and postponement of claim to guarantee the obligations of the Landlord to the Lender up to a maximum of $2,000,000 . The Loan will accrue interest at a rate of 10% per annum and is required to be repaid over the course of the extended initial term of the Amended Lease Agreement, by way of additional monthly rent of $27,100 . The Company will be entitled to repay the advance in full, together with any accrued interest, at any time, without penalty, if the Landlord can repay such amount without penalty to the Lender.

It is expected that the proceeds from the Loan will be used to meet the Company’s existing commitments related to completing construction of its new manufacturing facility, which is expected to be the most technologically-advanced medicinal cannabis production facility in the world.

“The Loan provides us with additional non-dilutive capital as we transition to domestic production and Phase II of our business strategy,” said Marc Wayne , President and CEO of Bedrocan. “The willingness and valued support of our Landlord, a significant shareholder of Bedrocan, provides us with greater operational flexibility and long-term stability in order to deliver on our key milestones ahead.”

About Bedrocan

Bedrocan and Bedrocan BV are focused on medicinal cannabis research and product innovation, and have been producing and supplying government-regulated medicinal cannabis for 13 years. Bedrocan’s strains of pharmaceutical-grade cannabis have been used by more than 20,000 patients in seven countries, including Canada . The Company is committed to clinical research with ISO 9001-rated production processes and product development, on an international scale. Bedrocan is one of only two companies currently supplying pharmaceutical-grade medicinal cannabis in Canada . Bedrocan Cannabis Corp. trades on the TSX Venture Exchange under the symbol “BED”.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the use of proceeds from the Loan. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on these forward looking statements. This news release contains information obtained by the Company from third parties, including but not limited to market data. The Company believes such information to be accurate but has not independently verified such information. To the extent such information was obtained from third party sources, there is a risk that the assumptions made and conclusions drawn by the Company based on such representations are not accurate.

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