CubicFarm Systems Corp. Provides Update on Status of Management Cease Trade Order

CubicFarm^® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB), a leading local chain agricultural technology company, is providing this default status update with respect to its previously announced management cease trade order (the "MCTO") issued by Company's principal regulator, the British Columbia Securities Commission (the "BCSC") on April 3, 2023. This update is in connection with the Company's delayed annual financial statements for the year ended December 31, 2022 and related management discussion and analysis and certifications (collectively, the "Financial Statements"); the annual information form for the fiscal year ended December 31, 2022; and the CEO and CFO certificates delating to the Financial Statements (the "Required Filings") beyond the prescribed filing deadlines.

The Company's delay in filing its Required Filings on time is due to the following circumstances:

• The Company needs more time to prepare the Required Filings and complete the financial audit with its auditor. This is primarily due to a significantly reduced headcount in the finance team in connection with the Company's previously announced cost reduction measures.
   
• As part of its ongoing restructuring efforts, the Company prioritized payments to ensure operational sustainability. This resulted in an outstanding balance with its auditor who temporarily halted services until the Company settled the outstanding balance for services provided. The Company has now substantially resolved these issues and is working expeditiously to complete the Required Filings, with the goal of completing the Annual Filings by April 28, 2023, and in any event on or before May 30, 2023, in accordance with the terms of the MCTO.

The Company is providing this default status report in accordance with National Policy 12-203 Management Cease Trade Orders ("NP 12-203"). Until such time as the Company files the Required Filings and the MCTO has been revoked, the Company intends to the follow the provisions of the Alternative Information Guidelines set out in NP 12-203 (the "Guidelines"), including the issuance of the required bi-weekly default status reports in the form of news releases.

Pursuant to the provisions of the Guidelines, the Company confirms that, as of the date of this release and except as noted above: (a) there have been no material changes to the information contained in the default announcement or subsequent default status reports that would reasonably be expected to be material to an investor; (b) there have been no failures by the Company to fulfill its stated intentions with respect to satisfying the provisions of the Guidelines; (c) there has not been, nor is there anticipated to be, any specified default subsequent to the default which is the subject of the default announcement; and (d) there is no other material information concerning the affairs of the Company that has not been generally disclosed.