Flower One Reports Fourth Quarter and Year End 2020 Results - Seite 2

Fourth Bi-Weekly Status Report in Relation to Annual Filings:

The Company is providing its fourth bi-weekly status update, further to the Company’s press release dated May 3, 2021. The Company was granted a customary management cease trade order (the “MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”). As previously announced, the application for the MCTO was made by the Company in order to secure additional time for the Company to file its audited annual financial statements for the year ended December 31, 2020, the related management’s discussion and analysis, certificates of its CEO and CFO and its annual information form (collectively the “Annual Filings”). The MCTO prohibits all trading in securities of the company, whether directly or indirectly, by the company’s CEO and CFO. The MCTO does not affect the ability of other shareholders to trade in the securities of the Company.

In connection with the issuance of the MCTO, and in accordance with its obligation to provide bi-weekly updates under the alternative information guidelines set out in NP 12-203, the Company confirms that (i) there has been no material change to the information relating to the company’s delay in making the Annual Filings since its news release on May 28, 2021 that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.

As a result of the delay in filing the Annual Filings, the Company also announced on May 28, 2021 that the filing of its unaudited interim financial statements, management’s discussion and analysis and related CEO and CFO certifications for the three-months ended March 31, 2021 (the “Interim Filings”), would be delayed beyond the filing deadline of May 31, 2021. The Company is working to complete the Interim Filings as soon as possible and expects the Interim Filings to be filed on or before July 5, 2021, instead of on or before June 16, 2021 as previously announced on May 28, 2021. The MCTO will stay in effect until the Company is up to date with all of its continuous disclosure filings, which include the Annual Filings and Interim Filings. During the remainder of the MCTO, the Company confirms that it will comply with the provisions of the alternative information guidelines set out in NP 12-203 for as long as it remains in default.