Body and Mind extends debt financing

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Offers flexibility in expansion plans

LA VEGAS and VANCOUVER, BC, June 15, 2022 /CNW/ – Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) (the “Company” Where “BAM“), a U.S. multi-state cannabis operator, is pleased to provide an update on the extension and changes to its loan agreement (the “Loan agreement“) entered into between the Company, DEP Nevada, Inc., a wholly owned subsidiary of the Company, the guarantors, as set forth in the loan agreement, FG Agency Lending LLC (the “Agent“) and Bomind Holdings LLC (the “Lender“), date July 19, 2021as amended on November 30, 2021.

The Company entered into a second amendment to the Loan Agreement (“Amendment No. 2 to the loan agreement“) to extend the due date by one year for July 19, 2026. In addition, rider no. 2 to the loan agreement allows the company to impose a deadline on the deferred draw term loan of $4.44 million be extended by June 1, 2022 at March 31, 2023by which $4 million in funds will be advanced to the Company. The Company’s ability to draw on the Deferred Drawn Term Loan is subject to compliance with certain provisions of the Loan Agreement, including the provision of a satisfactory budget approved at the Lender’s sole discretion. Amendment No. 2 to the loan agreement increases the interest rate on funds advanced from 13% to 15% per annum, which additional interest of 2% may be paid in kind, with interest payable on the first day of each month. Amendment No. 2 to the loan agreement provides for an exit fee equal to 1.5% of the principal balance, which is due and payable upon any payment, partial or total, of the initial term loan and the loan deferred draw term.

In partial consideration for Amendment No. 2 to the Loan Agreement, the Company issued 1,000,000 common stock warrants (each, a “To guarantee“) to the lender. Each warrant entitles its holder to acquire common shares (each, one “Warrant action“) at an exercise price of $0.16 per Warrant Share up to June 14, 2027.

Amendment No. 2 to the Loan Agreement contains additional features and requirements and the material terms will be described in a current report on Form 8-K to be filed by the Company on or about June 17, 2022.

“Expanding our current lending facility aligns with our development program and provides flexibility for future opportunities,” said Michael Mills, CEO of Body and Mind. “As we continue with our expansion plans, this opportunity to modify the loan facility provides the company with the ability to pursue opportunities.”

About Body and Spirit Inc.

BaM is an American operations-focused, multi-state cannabis operator that invests in the cultivation, production, and retail of high-quality medical and recreational cannabis.

BaM continues to expand its activities in Nevada, California, Arkansas, Ohio and Michigan and is dedicated to increasing shareholder value by focusing its time and resources on improving operational efficiencies, expanding facilities, state licensing opportunities as well as mergers and acquisitions.

Our exclusive property Nevada subsidiary obtained one of the first medical marijuana cultivation licenses and holds cultivation and production licenses. BaM products include dried flowers, edibles, oils and extracts as well as GPEN Gio cartridges. BaM cannabis strains have won numerous awards, including the 2019 Las Vegas Weekly Bud Bracket, 2016 Las Vegas Hempfest Cup, High Times Top Ten, NorCal Secret Cup, and Emerald Cup.

Please visit www.bodyandmind.com for more information.

Instagram: @bodyandmindBaM
Twitter: @bodyandmindBaM

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Safe Harbor Statement

Except for statements of historical facts contained herein, the information set forth in this press release constitutes “forward-looking statements” as that term is used in United States and Canadian laws. These statements relate to analyzes and other information that are based on forecasts of future results, estimates of amounts not yet determinable and management’s assumptions. Any other statement that expresses or implies discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or indicating that certain actions, events or results “could”, “could”, “could”, “could” or “will” be taken, occur or be carried out) are not statements of historical fact and should be considered as “statements prospective”. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. . These risks and other factors include, but are not limited to, actual results of the business, variations in UNDE’s basic assumptions associated with estimating the business, the availability of capital to fund the programs, and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause the actions, events or results are not those intended, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this press release and any document referred to in this press release.

Certain matters discussed in this press release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it cannot guarantee that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that could cause actual results to differ materially and could affect the company and the statements contained in this press release can be found in the company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or supplement any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

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SOURCE Body and Spirit Inc.

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