Craftport Cannabis Corp. announced that it has entered into a loan agreement with an arms'-length party for the purpose of documenting numerous advances, for an aggregate principal amount of $1,450,000, previously received by the Company between January 2021 and December 2021. In addition, the Company has set December 31, 2023 as the maturity date in respect of the Loan and granted to the Lender a security interest in respect of the Loan.

The Loan is repayable in full on the Maturity Date. The Loan bears interest at a rate of 10% per annum in respect of each advance under the Loan, calculated from the date of each such Advance and payable on the Maturity Date. As security for the payment of the Company's obligations under the Loan Agreement, the Company has, concurrently with the Loan Agreement, granted the Lender a general security agreement; a guarantee from Potanicals Green Growers Inc., a wholly-owned subsidiary of the Company; security interest in all personal property of the Company; and a mortgage by the Guarantor in the principal amount of $1,450,000, together with assignment of rents, of the lands located at 4715 Paradise Valley Drive, Peachland, BC.

The proceeds of the Loan were used by the Company to fund general working capital.