CanadaBis Announces Closing of New Credit Facility and Amendment to Previously Announced Non-Brokered Private Placement

Red Deer, Alberta--(Newsfile Corp. - September 7, 2021) - CanadaBis Capital Inc. (TSXV: CANB) (the "Corporation" or "CanadaBis") is pleased to announce that, further to its press release on June 2, 2021, the first tranche of funding of $7,210,000 in respect of the previously announced new credit facility (the "New Credit Facility") with Connect First Credit Union Ltd. (the "Lender") was completed on July 23, 2021. The New Credit Facility is comprised of (i) a five-year term secured loan of $8,850,000 (the "Loan") bearing interest at a fixed rate of 4.35% per annum (calculated daily and payable monthly in arrears); and (ii) a $750,000 demand line of credit bearing interest at a rate of the Lender's prime lending rate plus 1.00% per annum (calculated daily and payable monthly in arrears). The proceeds of the Loan will be used to refinance outstanding debt. The funds from the demand line will be used to assist with day-to-day operations, as required. The second tranche of funding ($1,640,000) shall be advanced by the Lender upon completion and delivery of the Corporation's July 31, 2021 year-end audited financials, provided all financial covenants and benchmarks have been met or exceeded.

In addition, further to the Corporation's press release dated June 2, 2021, the Corporation is pleased to announce it has agreed to amend the terms of its previously announced private placement (the "Amended Private Placement") with Plant-Based Investment Corp. ("PBIC").

The Amended Private Placement will now consist of the sale of 11,538,462 units of the Corporation (the "Units") at a price of $0.13 per Unit for gross proceeds $1,500,000. Each Unit shall be comprised of one common share of the Corporation ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share ("Warrant Share") at an exercise price of $0.25 per Warrant Share for three years from the date of issuance of such Warrant. The Corporation intends to close the Amended Private Placement in two tranches, with the first tranche expected to close as soon as practicable and the second tranche expected to close concurrently with closing of the previously announced short-form prospectus offering. The closing of the Amended Private Placement is subject to certain conditions including, but not limited to, approval of the TSX Venture Exchange. The Common Shares and Warrants comprising the Units will be subject to a hold period of four months and one day.

The Corporation intends to use the net proceeds from the Amended Private Placement for further outdoor cultivation development, the purchase of additional inventory and for general working capital purposes with a view to expand the Corporation's extraction and tolling business.

Leede Jones Gable Inc. (the "Agent") is acting as selling agent and at the closing of the Amended Private Placement, the Corporation will pay the Agent a cash fee equal to 7.0% of the gross proceeds of the Amended Private Placement and a number of warrants ("Broker Warrants") equal to 7.0% of the total number of Units issued under the Amended Private Placement. The Broker Warrants shall be exercisable into Units at a price of $0.13 for a period of 36 months from the respective tranche closing date, subject to customary adjustment in certain events. The Units issuable upon exercise of the Broker Warrants have the same terms and are comprised of the same securities as the Units issued under the Amended Private Placement.

In connection with the Amended Private Placement, the Corporation has entered into a cannabis supply and sale agreement with an affiliate of PBIC and, upon closing of the second tranche, the Corporation has agreed to grant PBIC the right, pursuant to an observer rights agreement, to appoint a board observer who shall have the right to receive notice and attend all meetings of the Corporation's board of directors but shall not be appointed as a director or have any voting rights at such meetings.

The Corporation is still proceeding with the previously announced short-form prospectus offering (the "Public Offering") and anticipates that it will be in position to close the Public Offering before the end of September, 2021. The Public Offering has been revised to an offering, on a "commercially reasonable efforts" agency basis of a minimum of 15,384,615 Units for gross proceeds of $2,000,000 and a maximum of 36,461,538 Units for gross proceeds of $5,000,000. All other terms of the Public Offering are as set out in the press release of June 2, 2021 and are more particularly described in the second amended and restated preliminary prospectus of the Corporation which has been filed with the securities regulatory authorities in each of the provinces of Canada, except Quebec.

FOR FURTHER INFORMATION PLEASE CONTACT:

Travis McIntyre, CEO
Phone: 1-888-STI-GMA1