Canada House Wellness Group (CSE: CHV) ("Canada House" or the "Company"), a fully integrated medical cannabis company, is pleased to provide an update with respect to its previously announced transaction (the "Transaction") with Montréal Cannabis Médical Inc. ("MTL Cannabis"). As previously announced on November 26, 2021, the Company and MTL are working diligently on the integration of their businesses in advance of the closing of the Transaction, now expected to occur in calendar Q2 2022, subject to the satisfaction of all remaining closing conditions, namely the receipt of requisite MTL Cannabis audited financial statements, the receipt of applicable regulatory approvals, and the shareholder approval described in the Company's press release dated November 26, 2021.

Canada House is working closely with MTL Cannabis and their auditors on the completion of MTL Cannabis' audited financial statements for the years ended March 31, 2020 and 2021 and reviewed interim financial ‎statements for the three and nine month periods ended December 31, 2021 (the "MTL Financial Statements").  In this respect, because MTL Cannabis' auditors were appointed during 2021, they were not able to observe the counting of MTL Cannabis' physical inventories or biological assets at March 31, 2020 and, accordingly, will not be able to express an unmodified opinion as it relates to inventory and biological assets. Canada House has applied to the Ontario Securities Commission for exemptive relief to permit the auditors of MTL Cannabis to express a modified opinion relating to these matters.  There is no assurance that such relief will be granted on the conditions applied for or at all. However, the Company and MTL Cannabis currently anticipate delivering a management information circular to its shareholders in calendar Q2 2022 in respect of a shareholders' meeting to follow.

"Given the delay in completing the Transaction due to the finalization of MTL Cannabis' financial statements and the required conversion from private company reporting to IFRS, we feel it is vital to communicate our unwavering commitment to this Transaction," commented Rich Clement, CEO of MTL Cannabis.  "We have made tremendous progress with Chris and the broader Canada House team to integrate our business to the best of our ability in advance of closing so that we maximize the Company's operational and financial performance leading to the completion of the Transaction and the concurrent resumption of trading. We believe bringing Canada House and MTL Cannabis together will result in a combined business that will change the way Canadian Cannabis companies are perceived both operationally and on the bottom line. I want to thank Chris and his team for their continued support as we optimize our respective businesses."

As the Transaction constitutes a "fundamental change" within the meaning of CSE policies, trading in Canada House's common shares is currently halted and will remain halted until the resumption of trading is approved by the CSE, which is not expected to occur until completion of the Transaction.