Zenabis Global Inc. (‘company’) announced that it has entered into a letter agreement (the ‘Letter Agreement’) dated December 31, 2020, with a major Canadian licenced producer of cannabis (the "Buyer"), pursuant to which the Buyer has agreed to purchase $7 million (the "Purchase Amount") of dried cannabis on delivery terms to be agreed under a cannabis purchase agreement to be negotiated between the parties (the "Purchase Agreement"). At the Buyer's discretion, it may as an alternative to entering into the Purchase Agreement, enter into a private placement transaction with Zenabis (the "Placement"). In the event the Buyer chooses to complete the Placement as an alternative to the Purchase Agreement, Zenabis shall negotiate in good faith to conclude a definitive subscription agreement with the Buyer as soon as possible following the Buyer's notice of same. The Placement would be subject to applicable regulatory approvals, including from the TSX.