Variation of Terms of Share Purchase Plan

As previously announced to the market, Cannasouth Limited (NZX:CBD), New Zealand's first and only listed medicinal cannabis company, is currently undertaking a SPP. CBD has been approached by a professional Custodian company that holds CBD shares for a large number of its client investors, requesting that the minimum application amount under the SPP (which is currently set at $100.00) be removed so as to enable more of its clients to invest into the SPP. The CBD Board has agreed to vary the terms of the SPP such that: 1. There is no minimum application amount in terms of the SPP; 2. There is no minimum multiple of investment that must be made. In addition, the Board of CBD has resolved to increase the maximum quantum of new investment that can be raised under the SPP from $3 million to $5 million in aggregate. Accordingly, the maximum number of Shares that can be subscribed for under the SPP is increased in aggregate from 7,894,736 to 13,157,894. CBD notes that the increase to the size of the SPP Offer does not change the manner in which the proceeds of the SPP will be applied. A new Corporate Action Notice (replacing the Corporate Action Notice released last week), which has been amended to take into account the above variations to the terms of the SPP, accompanies this announcement. -ENDS- For further information visit www.cannasouth.co.nz or contact: Mark Lucas CEO, Cannasouth Limited Email: mark.lucas@cannasouth.co.nz Mobile: 021 484 649 Tony Ho Chairman, Cannasouth Limited Email: tony.ho@cannasouth.co.nz Mobile: +61 417 345 839 End CA:00351991 For:CBD Type:OFFER Time:2020-04-21 15:59:04