Atlas Global Brands Provides Corporate Update and Outlines Growth Strategy - Seite 2

Vertical Integration in Israel

Atlas has a strong foothold in Israel with controlling interests in 3 pharmacies and definitive agreements to acquire controlling interests in 6 additional pharmacies in core markets in Israel, which combined will be a total of 9 pharmacies. The acquisitions of the pharmacies are expected to close subject to receipt of all necessary approvals and the satisfaction of all other customary conditions to closing. Additionally, Atlas has a definitive agreement to acquire an Israeli Trading House, located in Tel Aviv, which will be leveraged as an export distributor. Atlas intends to utilize its Trading House to hold an inventory of quality products which will be sold to all Israel-based pharmacies in the country to bring patient focused products to market. For efficiency and costs savings, the Trading House will supply Atlas’ pharmacies in Israel, strengthening Atlas’ globally owned supply chain.

Business Integration Activities

Since going public five months ago through reverse takeover of two Canadian cannabis companies and the acquisition of four Israel-based companies, Atlas’ management team prioritized streamlining operations to align with the Company’s overall international growth strategy and to enhance cost efficiency. As part of these efforts, all packaging activities have been relocated to the Company’s facility in Chatham, Ontario, enabling centralized manufacturing and maximizing production capabilities. Atlas’ facility in Chatham, Ontario now serves as the Canadian hub for the processing of domestic and EU GMP flower and oils for international markets.

Atlas completed the acquisition of GreenSeal Cannabis Company, Ltd. and GreenSeal Nursery Ltd. on April 28, 2023, a GACP & CUMCS certified indoor grow facility located in Stratford, Ontario. This facility produces 3,500 kg of flower for the domestic and international markets and will expand Atlas’ genetic pipeline for new flower cultivars and shape product innovation through its nursey program.

In close proximity to Atlas’ EU-GMP facility in Chatham, Ontario, GreenSeal will help Atlas meet the growing demand for high-quality flower in key markets such as Israel, Australia, Germany, and others.

Atlas’ two Ontario facilities increase national distribution with 18 new SKUs entered into the OCS and other provincial markets as listings permit during the Company’s fiscal 2024 year.

Key Areas of Focus

As part of its business integration strategy, Atlas will maintain its focus on streamlining operations, international growth and strengthening its balance sheet. Atlas’ go-forward business strategy is as follows: