Maricann Group Inc. Announces Closing of $40 Million Private Placement - Seite 2

Insiders of the Company or their associates participated in the Offering for an aggregate amount of $929,500.

In connection with the Offering, the Agents received a cash commission and 935,950 compensation warrants (the "Compensation Warrants"). Each Compensation Warrant entitles the holder thereof to acquire one Unit at a price of $2.00 per Unit until January 9, 2020, subject to adjustment in certain events.

Prior to the filing of the Qualifying Prospectus and the automatic exercise of the Special Warrants, the securities issued under the Offering will be subject to a four month hold period from the date of closing of the Offering, expiring on May 10, 2018.

The net proceeds from the Offering will be used for facility expansion, working capital and general corporate purposes. The Company intends to continue to expand operations at its Langton, Ontario property by adding 630,000 sq. ft. of greenhouse space. This expansion is in addition to its current 44,000 existing operations and its fully funded 217,000 sq. ft production facility, including a natural gas co-generation facility to produce 2.9 MW of electricity, 3,406,000 litre water cistern, boilers for ambient and water heating, and CO2 scrubbing equipment to provide additional CO2 for plants. Upon completion of the full expansion, the Company anticipates that annual production capacity will be in excess of 95,000 kg/year from 891,000 sq. ft. of combined operations. The Company's new cultivation facility will employ 26 people, making use of industrial automation in partnership with Rockwell Automation in an effort to ensure optimal operational efficiency, leading to low cost production.

Correction to December 12, 2017 Press Release

The Company has been made aware that a statement in the Company's December 12, 2017 press release relating to the Company's agreement with Lovell Drugs was incorrect. The statement at issue was as follows: "Lovell Drugs has already commenced distribution of Maricann cannabis products to its patients, with the first prescription registered and fulfilled on December 1st, 2017." In fact, it was not a prescription that was registered and fulfilled on December 1st, 2017 but rather a patient registration that was completed on such date. The remaining text of the December 12, 2017 press release was correct.