Blue Sky Hemp Ventures Sells Hemp Food Division to Tilray Subsidiary

*SASKATOON, Canada –* Blue Sky Hemp Ventures Ltd., a privately held
Canadian company founded in 2017 and a pioneer in industrial hemp whole
plant utilization, sold its hemp-based food division to Fresh Hemp Foods, a
a division of Tilray Brands Inc., for an undisclosed amount.

“Thanks to a differentiated strategy and disciplined execution, Blue Sky
has delivered two consecutive years of positive EBITDA and net earnings —
an uncommon achievement in this sector,” said CEO Andrew Potter. “After
strong growth in both our food and cannabis divisions, we reached a
strategic crossroads. With limited physical space and capital, we concluded
that monetizing our successful hemp food business would allow us to better
scale our cannabis operations and drive long-term shareholder value.”

Proceeds from the sale will be used to accelerate expansion of Blue Sky’s
contract manufacturing services — including vape pens, pre-rolls, and
softgels — building on its foundation in topicals and oils. The company is
also on track to complete EU-GMP certification, unlocking new global
opportunities for bulk extracts and finished products.

“Although we had limited resources, our team successfully built a
high-growth, EBITDA positive food business over the last few years. I’m
incredibly proud of our product innovation, particularly our refined hemp
seed oil—an excellent example of our ability to cost-effectively develop
new products,” said Potter. “This spirit of innovation will continue to
drive our cannabis operations. We’re confident the purchaser of our food
operation will take this food business to the next level, and we look
forward to supporting them.”

“We welcome Blue Sky’s customers and suppliers to Fresh Hemp Foods. Blue
Sky has championed whole plant utilization, and we intend to carry that
forward alongside our own industry leading sustainability efforts. Fresh
Hemp Foods remains focused on bringing nutritious, sustainable hemp foods
to more and more customers and consumers,” said Jared Simon, President,
Manitoba Harvest and Tilray Wellness.
About Blue Sky Hemp Ventures

Founded in 2017, Blue Sky operates a 15,000 sq ft processing facility in
Saskatoon, Saskatchewan. Following its latest expansion (completed December
2024), Blue Sky is one of the largest independent extractors in Canada,
processing approximately 20,000 kg of dry flower per month. The company now
operates two core divisions:

Bulk Cannabinoid Extraction and Refinement

Contract Manufacturing – including oils, topicals, and new offerings such
as vapes, prerolls and softgels.

Over the coming months, Blue Sky will continue to convert its facility to
full EU-GMP compliance to support global manufacturing and extraction
partnerships.