Opening of a $3 million Share Purchase Plan

Cannasouth Limited (NZX:CBD), New Zealand's first and only listed medicinal cannabis company, is pleased to announce the opening of a $3 million share purchase plan ("SPP") today. Eligible New Zealand shareholders and Wholesale investors in Australia will receive their personalised application forms to apply for up to a maximum of NZ$50,000 of new shares per shareholder, at $0.38 per share. The issue price comprises a 20.65 % discount on the five day volume weighted average price of CBD shares traded on the NZX during the last five trading days prior to the date of this announcement. The SPP Offer Document will be sent to eligible shareholders today and can be found online at www.cannasouthshareoffer.com. Funds raised from the issue of the new shares will be used to accelerate: o Registration and launch of CBD's first imported white label medicinal cannabis products; o Expansion of Midwest Pharmaceutics NZ Ltd's (60% owned) existing GMP (Good Manufacturing Practice) operating capacity to meet current strong demand from the pharmaceutical, health and wellness supplement sectors and increase existing revenues; o Development of cannabinoid processing capability at Midwest, including toll manufacturing services; o Commissioning of the first stage of Cannasouth Cultivation Ltd's (50% owned) new scalable growing facility and commencing production of medicinal cannabis raw flower sales; and o Progression of next generation products and supporting clinical research for commercialisation within the Cannasouth Group. The key dates for the SPP offer are as follows: Record Date Tuesday, 14 April 2020 SPP Offer Opens Wednesday, 15 April 2020 SPP Offer Closes Thursday, 30 April 2020 Allotment of Shares Thursday, 7 May 2020 Commencement of trading of shares on NZX Thursday, 7 May 2020 A copy of the Cleansing Notice, Corporate Action Notice and the Offer Document and Application Form accompany this announcement. Cannasouth is being advised by CM Partners Limited. -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:00351650 For:CBD Type:OFFER Time:2020-04-15 08:30:34