Chalice Brands Ltd. Acquires Cannabliss & Co. Retail Chain From Acreage Holdings Inc., Increasing Retail Footprint To 16 Stores In Oregon

Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF) (“Chalice” or the “Company”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, has entered into an asset purchase agreement and a services agreement effective September 16, 2021 (the "Agreement") to acquire four retail stores branded Cannabliss & Co. from Acreage Holdings, Inc. ("Cannabliss"), located in Portland, Eugene, and Springfield, Oregon for total consideration of US$6.5 million (less US$500,000 working capital surplus required to be left by the seller) or 0.8 times FY 2020 annualized revenue. With the Cannabliss acquisition, Chalice strengthens its customer base in the Oregon market, while also significantly increasing vertical margin contribution through the distribution of its Bald Peak flower, Chalice, Private Stash, RXO, and Elysium Fields branded products into the Cannabliss stores. The closing of the transaction is subject to approval by the OLCC (“Oregon Liquor and Cannabis Commission”) and the satisfaction of other closing conditions.