Supreme Cannabis Files Prospectus Supplement

TORONTO, Sept. 2, 2020

In consideration of the reduction of the principal amount of the Debentures by $63.5 million, among other consideration, the Company will issue an aggregate of 116.6 million common shares (the "Consideration Shares") to Debentureholders. Debentureholders resident in eligible jurisdictions will receive half of the Consideration Shares as freely-trading shares, and the other half of the Consideration Shares will be subject to a four-month restricted period. Debentureholders resident in other jurisdictions will be entitled to receive Consideration Shares subject to restricted periods, subject to applicable securities laws.

In order for eligible Debentureholders to receive freely-trading Consideration Shares, such Debentureholders are reminded to instruct their CDS participants to make the appropriate election with respect to jurisdiction of residency through CDS before the election deadline (the "Election Deadline"), which is expected to be on or around September 8, 2020. Any eligible Debentureholder that fails to elect prior to the Election Deadline will receive 100% of the Consideration Shares subject to a four-month restricted period.

No action is required by Debentureholders in order to receive their entitlement to Consideration Shares or Accretion Debentures, other than eligible Debentureholders wishing to receive freely-trading Consideration Shares being required to make the appropriate election through CDS as described above.

On September 9, 2020 the Company will enter into a supplemental trust indenture to implement the Amendments. At such time, all Amendments to the Debentures will become effective and Debentureholders will receive their pro rata entitlement to Consideration Shares and Accretion Debentures.

As of September 9, 2020, trading of Debentures on the Toronto Stock Exchange will occur on a post-Amendment basis.