Craftport Cannabis Corp. (CSE: CFT) ("Craftport Cannabis" or the "Company") provides the following corporate update regarding the progress of its asset-light business model, and the sale of the Pitt Meadows facility.

Asset-Light Business Model

Further to the Company's prior press releases issued on October 25, 2021 and December 13, 2021, the Company determined that it is in its best interest to focus on the Canadian premium craft cannabis recreational market by utilizing an asset-light model based from its Peachland, BC facility. The asset-light model entails purchasing premium craft cannabis from other licensed Canadian cannabis producers and packaging the product in Peachland. The Company expects to sell such product under the brand name "Craftport Cannabis". To execute on its new business model, the Company has closed all cultivation activities in Peachland, and purchased and installed an automated nitrogen tin-can packaging machine, and an automated pre-roll machine. By moving to this outsourced business model, the Company is able to leverage the capacity of its automated machinery in order to achieve significantly more scale than it could by cultivating its own product in Peachland.

Sale of Pitt Meadows Facility and Revocation of Health Canada Cannabis Licenses

Further to the Company's press release dated December 13, 2021, the Pitt Meadows facility is listed for sale as its operations are no longer consistent with the Company's new asset-light business model. The cannabis license holder for the Pitt Meadows site is the Craftport Cannabis wholly owned subsidiary, Potanicals Green Growers Inc ("PGG"). Given the decision to sell the Pitt Meadows facility, PGG submitted a notice of cessation of activities, and requested revocation of its Health Canada cannabis license for this site. Health Canada approved the revocation request, resulting in the standard cultivation, standard processing and sale for medical purposes licenses at the Pitt Meadows site being revoked effective as of March 31, 2022.

In addition, PGG also had a standard cultivation license at another nearby site owned by Yatai and BBT Biotech Ltd as a result of a cooperation agreement entered on May 27, 2019 between the Company and Yatai Pharmaceutical Co., Ltd. As this site has not commenced cultivation activities, PGG submitted a notice of cessation of activities, and requested revocation of its Health Canada cannabis standard cultivation license at this site. Health Canada approved the revocation request, resulting in the standard cultivation license at the Yatai and BBT Biotech Ltd site being revoked effective as of March 31, 2022.

Financing Discussions

The Company continues to have financing discussions with various parties in order to raise sufficient funds to fully execute on its business plan.