Cannasouth Ltd (“CBD”) – Rights Offer & Option Issues

Memorandum To: Market Participants From: NZX Product Operations Date: Monday, 8 May 2023 Subject: Cannasouth Limited ("CBD") - Non-Renounceable Rights Offer and Option Issue Message: As per its announcement of 1 May 2023, Cannasouth Limited ("CBD") is undertaking a 1 for 9.53075 Non-Renounceable Rights Issue. In addition, 1 option will be issued for every 2 New Shares allotted under the Rights Issue. CBD is also making a separate offer to Eqalis shareholders, third parties and is offering an Oversubscription Facility, as described in the 1 May 2023 announcement and accompanying documentation. Capitalised terms in this memorandum are defined in CBD's offer documentation. Under the Cannasouth Offer, Eligible Shareholders are being invited to subscribe for New Shares, at an Offer Price of $0.29 per share. Shareholders who subscribe for New Shares under the Offer, will then be allocated 1 Option ("CBDOB") per 2 New Shares subscribed. An option may be exercised in the future to receive a Share in CBD of the same class as already quoted on the NZX Main Board. The rights ("CBDRB") and CBDOB options will not be Quoted on the NZX Main Board and are not otherwise Renounceable. As such, an NZX Quotation notice will not be released for either security. A timetable of events is attached. Please contact NZX Product Operations on +64 4 496 2853 or productoperations@nzx.com with any queries. ENDS End CA:00411079 For:NZXO Type:MEMO Time:2023-05-08 16:52:17