Opening of a $6 million Offer to Retail Investors

As part of Cannasouth Limited's (NZX: CBD) previously announced capital raising strategy to raise up to $6 million to: o partially fund the acquisition of the interests that it does not already own in each of Cannasouth Cultivation Limited and Midwest Pharmaceutics (NZ) Limited; and o provide additional growth capital for Cannasouth, the Board is pleased to announce that Cannasouth is today opening a non-underwritten $6 million offer to retail investors in New Zealand ("Offer"), comprising: o a priority offer, which is only available to clients of CM Partners Limited - the Lead Manager of the Offer; o an offer to existing Cannasouth shareholders through a Share Purchase Plan ("SPP"); and o a general offer to retail investors through a general retail offer ("General Retail Offer"). Cannasouth reserves the right to accept oversubscriptions up to $2 million. Share Purchase Plan Investors recorded in Cannasouth's share register as at 5pm on 15 July 2021 ("Record Date") with an address in New Zealand can subscribe online for up to NZ$15,000 of new shares in Cannasouth ("Shares"). The offer price for any Shares subscribed for will be 40 cents per share. The new Shares to be issued will rank equally in all respects with Cannasouth's existing ordinary shares on issue. For every three new shares subscribed for, an investor will receive one new option to acquire one ordinary share in CBD ("Option"). The exercise price for each Option is 40 cents, and the term of the Option shall be 24 months from the date of issue of the Options. There is no minimum subscription amount. The Option will not be quoted on the NZX Main Board. The SPP Offer Document will be sent or made available to eligible New Zealand shareholders today and will also be available to those eligible shareholders online at http://www.cannasouthshareoffer.com from today. All eligible shareholders are encouraged to visit that website and apply online before the closing date at 5.00pm on Friday, 30 July 2021. The key dates for the SPP are as follows: Key dates* Date Record Date: 5pm, Thursday 15 July 2021 SPP Offer Opens: Friday, 16 July 2021 SPP Offer Closes: 5pm, Friday, 30 July 2021 Allotment of Shares: By Friday, 6 August 2021 Commencement of trading of shares on NZX: By Friday, 6 August 2021 *The timetable presented is indicative only and subject to change without notice (subject to applicable laws and the NZX Listing Rules). All dates and times are New Zealand times (unless stated otherwise). General Retail Offer Retail investors may apply for up to NZ$50,000 of new shares per retail investor, at 40 cents per share under the General Retail Offer ("General Retail Offer Shares"). The new General Retail Offer Shares to be issued will rank equally in all respects with Cannasouth's existing ordinary shares on issue. For every three new General Retail Offer Shares subscribed for, an investor will receive one new option to acquire one ordinary share in CBD ("Option"). The exercise price for each Option is 40 cents, and the term of the Option will be 24 months from the date of issue of the Options. The Option will not be quoted on the NZX Main Board. Applications may be made online from today or through an NZX market participant. The General Retail Offer Document can also be found online at http://www.cannasouthshareoffer.com. Eligible investors choosing to participate in the General Retail Offer should apply online before the closing date at 5.00pm on Friday, 30 July 2021. The key dates for the General Offer are as follows: Key Dates** Date General Offer Opens: Friday, 16 July 2021 General Offer Closes: 5pm, Friday, 30 July 2021 Allotment of Shares: By Wednesday, 6 August 2021 Commencement of trading of shares on NZX: By Wednesday, 6 August 2021 **The timetable presented is indicative only and subject to change without notice (subject to applicable laws and the NZX Listing Rules). All dates and times are New Zealand times (unless stated otherwise). Other Documentation A copy of the Cleansing Notice, the SPP Offer Document and the General Retail Offer Document accompany this announcement. -ENDS- For further information visit www.cannasouth.co.nz or contact: Mark Lucas CEO / Managing Director Email: mark.lucas@cannasouth.co.nz Mobile: +64 (0)21 484 649 Tony Ho Chairman, Cannasouth Limited Email: tony.ho@cannasouth.co.nz Mobile: +61 (0)417 345 839 End CA:00375744 For:CBD Type:OFFER Time:2021-07-16 09:29:57