Company signs Master Agreement with Atlantic Cultivation

to operate retail stores in Newfoundland and Labrador

CALGARY , April 1, 2020 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it has signed a master agreement with a wholly owned subsidiary (the "Atlantic Subsidiary") of Atlantic Cultivation Limited ("Atlantic Cultivation") for the operation of franchised Spiritleaf branded retail cannabis stores in Newfoundland and Labrador . Atlantic Cultivation is currently building a cannabis production facility in St. John's, Newfoundland . Pursuant to a supply, development and retail agreement previously entered into with the Government of Newfoundland and Labrador and strategic partner Auxly Cannabis Group Inc. ("Auxly"), Atlantic Cultivation is eligible to apply to be granted five retail licenses to operate retail cannabis store locations in the province.

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"The agreement enables Inner Spirit to add a new operating territory and open a new market for the Spiritleaf brand. We are very pleased to sign the master agreement with the Atlantic Subsidiary and to bring Atlantic Cultivation into the Spiritleaf family. Our long-time strategic partner Auxly played a lead role in guiding this partnership and will remain involved as a supplier to the Province of Newfoundland and as a key strategic supplier to Spiritleaf stores across the country. We are looking forward to working to expand our brand and bring our premium retail cannabis shopping experience to communities in Newfoundland and Labrador . We aspire to be a truly national retail cannabis network so it's very exciting to be able to say Spiritleaf operates from coast to coast," said Darren Bondar, President and CEO of Inner Spirit.

Atlantic Cultivation has plans to open a number of Spiritleaf stores in the near term. The Topsail Road store in St. John's is under construction and expected to open in June 2020 at 673 Topsail Road. Additional stores under construction and being prepared for opening in the province later this year include two in St. John's , one in Gander and one in Grand Falls-Windsor.

Alex Twells , CEO of Atlantic Cultivation, noted his company's excitement at today's announcement. "The agreement between Atlantic Cultivation and Inner Spirit is the result of hard work between companies who share similar values. In these challenging times, we're thrilled to be a part of this announcement and to help grow the Spiritleaf network. Our core focus is to delight cannabis consumers in Newfoundland and Labrador and with this arrangement we'll be able to offer a carefully curated cannabis retail experience to the local cannabis community," said Twells.

Chris Crosbie , Atlantic Cultivation's Founder and Chief Operating Officer, added: "Our company is dedicated to providing high-quality cannabis products from our partners, along with our own locally grown cannabis once production starts. This partnership will create opportunity for those looking to enter the industry across Newfoundland and Labrador . This is the beginning of something great and we can't wait to get started."

The Spiritleaf retail cannabis store network currently includes 46 open and operating franchised, licensed and corporate-owned stores in Alberta , British Columbia , Saskatchewan and Ontario . Please visit www.spiritleaf.ca for up-to-date information on store locations and operating hours. Due to the current COVID-19 pandemic, Spiritleaf stores are operating with updated customer service processes to ensure the safety of employees and customers, as well as reduced operating hours at select stores to accommodate revised staffing levels.

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