Atlas Signs Definitive Agreement to Acquire an Additional Pharmacy and Provides Update on Expanding its Global Cannabis Footprint and Progressing Its International Value Chain Strategy

• Atlas Global Brands signs definitive agreement to acquire an additional Israeli pharmacy
• The additional medical cannabis pharmacy enhances Atlas’ premium positioning in the Israeli market with its modern design, located in central Israel
• The completion of this acquisition will add another Israel-based pharmacy, licensed to sell medical cannabis, strengthening Atlas’ geographical coverage in Israel
• Inclusive of the previously announced signed letters of intent and definitive agreements, upon closing of these transactions, Atlas will own a majority interest in six pharmacies along with a trading house distribution centre in Israel

CHATHAM, ONTARIO and TEL-AVIV, ISRAEL, May 18, 2023 (GLOBE NEWSWIRE) -- Atlas Global Brands Inc. (“Atlas Global”, “Atlas” or the “Company”) (CSE: ATL), a cannabis company with expertise across the value chain, announces that it has entered into a definitive agreement (“Proposed Transaction”), signed May 17, 2023, for the acquisition of 51% of the outstanding securities of an Israeli private limited liability company operating a medical cannabis pharmacy (the “Pharmacy”). The Proposed Transaction is one of two proposed acquisitions previously announced on March 7, 2023 upon the Company entering into binding letters of intent for the acquisition of a 51% and 70% interest in two medical cannabis pharmacies in Israel.

The Pharmacy was granted a license to sell medical cannabis in October 2022 and annualized sales have since grown to approximately NIS 6.0 million (approximately CAD $2.2 million).

“The signing of the definitive agreement strengthens Atlas Global’s strategy to improve patient access to high-quality cannabis products, through new distribution points in primary locations in Israel,” said Bernie Yeung, CEO of Atlas Global. “Atlas intends to continue leveraging our value chain expertise to offer a greater assortment and variety of quality offerings, while enhancing the patient experience. We believe that this acquisition will benefit both patients and our shareholders, while continuing to expand our footprint in the international cannabis market.”

Terms of the Proposed Acquisitions

Under the Proposed Transaction, Atlas will acquire a 51% interest in the Pharmacy for 1,132,000 common shares of Atlas Global (the “Consideration Shares”) and NIS 650,000 (the “Cash Consideration”) (equivalent to approximately CAD $239,743) payable at closing. The Cash Consideration may be increased by up to NIS 2,050,000 upon the Pharmacy’s revenue and profitability exceeding certain prescribed amounts for the financial years completed December 31, 2023 to 2025 (the “Additional Cash Consideration”).