BevCanna Enterprises Inc. announced that it has entered into an agreement with Heritage Cannabis Holdings Corp. for the sale and distribution of the Company's cannabis-infused beverages in Canada. Under the agreement, Heritage will purchase BevCanna cannabis beverage products, as and when purchase orders (POs) are received from provincial cannabis boards, distributors, and retailers in Canada.

As consideration for the foregoing, BevCanna and Heritage will equally participate in the net margin. The cannabis beverages that will be sold and distributed include the Keef brand beverages, and BevCanna house brands including but not limited to Anarchist Mountain. Ontario and British Columbia: In the provinces of Ontario and British Columbia, upon receipt of a PO from the Ontario Cannabis Store (OCS) or the British Columbia Liquor Distribution Branch (BCLDB) issued to Embark Health Inc., Heritage shall purchase the finished BevCanna Products listed in the PO for an amount equal to the cost to produce the PO dollar amount from Embark (the Purchase Price).

BevCanna will utilize its sales license granted to its wholly owned subsidiary, Embark, to sell the BevCanna Products in the Provinces of Ontario and British Columbia. From the proceeds of the Purchase orders, BevCanna will pay Heritage its participation of the Net Margin, and the amount equal to the original Purchase Price. All Other Provinces and Territories: For all other provinces and territories, upon receipt of any provincial or territorial board in Canada other than the OCS or the BCLDB (collectively, the Other Canadian Boards), Heritage shall purchase the finished BevCanna Products listed in the PO for an amount equal to the cost to produce the PO dollar amount (the Purchase Price) from Embark.

Heritage will utilize the sales license of either of its wholly owned subsidiaries, Heritage Cannabis East Corporation or Heritage Cannabis West Corporation (collectively, the Heritage Sales Licence) to sell the BevCanna Products. From the proceeds of the Purchase orders, Heritage will pay its participation of the net margin to Embark and additionally, Heritage shall retain an amount equal to the repayment of the Purchase Price.