Body and Mind Provides Corporate Update

• Body and Mind Inc. announced the closing of two previously disclosed Illinois dispensary asset purchase transactions (NMG IL 4 and NMG IL 1).
• Cash payments totaled approximately $2.5 million ($833,333 + $1,666,667) net of indebtedness repayments.
• Transactions include earnout provisions equal to 3.2x EBITDA for months 4–15 post-regulatory approval of management services agreements.
• Deals were initially announced on January 30, 2025, and closed on April 10, 2026.
• No direct executive quotes or forward-looking guidance beyond the earnout structure were included in the release.

• The news confirms execution of known initiatives rather than introducing new strategic pivots.
• Closing previously announced deals is positive for operational consolidation but lacks surprise factor given the January 2025 disclosure.
• The 15-month gap between announcement and closing suggests significant regulatory or operational friction, which may dampen investor enthusiasm despite successful closure.
• EBITDA-based earnouts introduce contingent liability; revenue recognition depends on future performance rather than immediate cash flow.
• Given the stagnant stock price history ($0.03 for 12+ months), this news is unlikely to trigger a material re-rating in the short term.

• Body and Mind Inc. operates in the cannabis retail sector with a focus on dispensary acquisitions in regulated markets like Illinois.
• Flagship projects involve the expansion of physical dispensary footprint through asset purchases (NMG IL 4, NMG IL 1).
• Business model relies on management services agreements and revenue sharing from acquired dispensaries.
• Development status: Acquisitions are closing but contingent on regulatory approvals for earnout triggers.