CaliPharms Expands its Operations with the Acquisition of Pacific Cannabis Growers

RIVERSIDE, CA--(Marketwired - Mar 28, 2017) - CaliPharms, Inc. (OTC PINK: KGET), a Company operating in the California Medicinal Cannabis industry, is pleased to announce it has duly executed the definitive stock purchase agreement with Pacific Cannabis Growers (PCG), a Humboldt County California Medical Cannabis Farm. (www.pcgrowers.com)

PCG is a medical cannabis farm that is currently in the process of permitting land in Humboldt County for cultivation of medical cannabis. Seedlings are being grown as shown on the PCG website and a cannabis cultivation permit is expected to be issued sometime in late April. Upon the permit being issued, PCG will build fencing and prepare the area for cultivation. PCG expects to achieve two harvests in 2017 provided the permit comes in during April 2017.

CaliPharms has purchased 51% stock ownership of PCG in a structured buy out over a 5 year period. The terms of the agreement are based on the profitability of PCG. The final purchase price is based on the actual profit margin of PCG. In the event the market conditions change in the cannabis growing industry, the agreement with the parties has the flexibility to adjust the final purchase price. The agreement is based on a ten times multiple in its profits and it is payable in CaliPharms preferred series stock. The preferred stock will be eligible to be sold in a leak out agreement over a 5 year period after it has been issued and aged under the applicable SEC rules.

Joshua Clark, President of Pacific Cannabis Growers, stated, "We are very pleased to be joining up with CaliPharms. This deal is performance driven, which will benefit us, CaliPharms and its shareholders in the long run. To be involved with a group as excited about the cannabis industry as we are is a blessing. We plan to produce top quality cannabis for the medical market and we value the long term goals of CaliPharms growth and sustainability."

CaliPharms CEO Bo Linton stated, "Pacific Cannabis Growers is a very important part of our long term plan for continued growth. Joshua Clark is now a valuable part of the CaliPharms team and I couldn't be more pleased to have his expertise, knowledge, and experience on our side." Linton continued, "Joshua knows this California industry as good as or better than anyone and our goals and interests are aligned which is great news for all of our shareholders. This shareholder friendly deal structure only works because Joshua understands the long term value of our fledgling company and we are in it for the long run."