Can B : Costs Associated with Exit/Disposal Form 8 K

ITEM 2.05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

As previously reported by Can B Corp. (the "Company"), on March 14, 2024, certain equipment used in the operation of the Company's hemp division were sold in an auction conducted under Article 9 of the Uniform Commercial Code. The auction resulted in proceeds of approximately $300,000 which were applied to the Company's obligations under convertible notes held by Arena Special Opportunities Partners I, L.P. and its affiliates. The Company's Board of Directors has concluded that as a result of the impact of the auction on the hemp division, it is no longer feasible to continue the Company's hemp operations. As a result, effective immediately, the Company will no longer pursue the development, manufacture or sale of hemp derived products. The Company expects to issue approximately 4,825,000 shares of its common stock and return approximately 1.4 million pounds of biomass to a supplier in connection with the termination of a hemp processing agreement. In addition, the Company expects to incur lease termination costs of up to $132,000 in connection with the termination of its hemp operations.