Share Issue and Post-merger Board Re-constitution

Cannasouth Limited (NZX:CBD) advised that it has completed the merger ("Merger") of CBD with Eqalis Group New Zealand Limited (Eqalis) on Tuesday 30 May 2023. In conjunction with the completion of the Merger: 1. CBD has issued 147,891,069 new ordinary fully paid shares to the vendor shareholders of Eqalis; 2. CBD has completed the Cannasouth Rights Offer and the Eqalis Offer and has raised a total of $7,177,945 under those offers (together referred to as the "Capital Raise"). Funds have been received from a combination of existing Cannasouth and Eqalis shareholders, together with third party investors. Accordingly: (a) A total of 24,751,456 new ordinary fully paid shares have been issued to the investors who participated in the Capital Raise; and (b) A total of 12,375,624 share options have been issued to the investors who participated in the Capital Raise. An investor in the Capital Raise received one share option for every two shares that they subscribed for under the Capital Raise. 3. Accordingly, CBD now has 320,533,594 shares on issue. 4. Changes to the board recorded in the Notice of Special Shareholder Meeting held on 28 April 2023, have also been made. CBD's board now comprises: (a) Tony Ho, Independent Non-executive Chair (b) Christine Pears, Independent Non-executive Director (c) Mark Lucas, Executive Director (d) Greg Misson, Executive Director (e) Hilary Webber, Independent Non-executive Director (f) Mark Scapens, Independent Non-executive Director Ms Juliet Hull retired from her position as Independent Non-executive Director of Cannasouth, effective 31 May 2023. Mr. Tony Ho, chairman thanks Ms. Hull for her two-and-a-half-year commitment to the company as Cannasouth launched its first medicines in New Zealand and achieved its GMP License to Manufacture Medicines for its cultivation facility in the Waikato. "On behalf of the Board, we thank Ms. Hull for her contributions to the current success of the company and for her ongoing interest in Cannasouth. We wish her all the best in her future endeavors. "To the new directors from Eqalis, I look forward to working with you as we embark on this exciting next phase of bringing products to market, faster together." Mr Richard Nash also retired from his position of Director of Eqalis Group New Zealand Ltd, effective 31 May 2023. Mr Ho acknowledges the significant contributions to the affairs of Eqalis over Mr Nash's four-and-a-half-years as director. Attached Documents Copies of the following documents accompanying this announcement: o Capital Change Notice - Issue of New Shares; o Capital Change Notice - Issue of New Options. -ENDS- For further information visit www.cannasouth.co.nz or contact: Mark Lucas CEO / Executive Director Email: mark.lucas@cannasouth.co.nz Mobile: 021 484 649 Tony Ho Chairman, Cannasouth Limited Email: tony.ho@cannasouth.co.nz Mobile: +61 (0)417 345 839 End CA:00412392 For:CBD Type:SECISSUE Time:2023-06-01 09:41:03