Positive Health Effects Key as CBD Continues to Garner Attention - Seite 2

Under the agreement terms, Weekend will provide a loan of up to $750,000 USD to Seven Hills in three equal tranches over 9 months to upgrade its facilities, and will have the option to acquire 100% of Seven Hills for $1,500,000 USD.

"Boggy Boon branded cannabis is cultivated in a 28,000 sqft. facility located in Wenatchee, Washington where Weekend's wholly owned subsidiary Orchard Heights Growers is also located. As a result of this arrangement, Boggy Boon will be able to dedicate its operation entirely to cultivation with an anticipated increase efficiency of 40%, with the current year run rate of $2M growing to $2.8M," explained Paul Chu, Weekend's President and CEO.

As a result of this alliance, Orchard Heights will have more diverse products to offer its sales channel and will be able to sell Weekend brands to the existing 130 Boggy Boon retail accounts.

"The Washington market is mature and consumers are becoming more loyal to established brands like Boggy Boon. Boggy Boon is ranked in the top 5% of all brands in Washington State and we feel this is an ideal partnership where each entity was looking to develop the infrastructure that the other already has in place. By forming this alliance both will accelerate their market penetration and fully utilize existing infrastructure to grow," added Paul Chu.

Key points:

• Boggy Boon is a Tier 3 producer / processor located in Wenatchee

• Boggy Boon built a custom cannabis greenhouse in 2016 for premium production

• By collaborating with Orchard Heights, it is anticipated that Boggy Boon will be able to improve its existing operations and production by 40% and diversify its product offering in Washington state

• Boggy Boon is in the top 5% of all producer / processors

• Weekend's facility in Wenatchee provides synergy and optimization to not only increase both company's revenue but also reduce operating expenses, thereby increasing profit margins"

Auxly Cannabis Group Inc. (OTCQX: CBWTF) is a vertically integrated cannabis company with diverse operations across Canada and Uruguay. Auxly Cannabis Group Inc. recently announced, further to its previous releases, that it had completed the acquisition of 80% of the outstanding common shares of Inverell S.A. The Transaction positions the Company as a leader in the global CBD economy with a highly efficient, low-cost source of cannabinoids for international distribution, including through the Company's strategic partnership with ICC International Cannabis Corporation Inc. (CSE: WRLD) which provides the Company with access to 16 markets through a network of 35,000 pharmacies. Importantly, the low cost, high purity CBD produced by Inverell gives the Company a long-term and stable supply of CBD to support the research, development and manufacturing of cannabis-derived products at Dosecann Inc., the Company's wholly-owned Licensed Processor facility located in Prince Edward Island, Canada. Hugo Alves, President and Director of Auxly Cannabis Group, commented: "We are incredibly pleased with progress that Inverell has made on the cultivation of its 2019 crop of CBD-rich hemp and on the broader development of the business as a stand-alone entity in the Auxly platform. In a very short period, Inverell has exceeded its 2018 planting target of 150 hectares of hemp plants and has made significant strides forward on the development of its world-class extraction facility located in the Parque de las Ciencias. We continue to believe that the low cost and high volume access to CBD molecules, through our ownership in Inverell, positions Auxly to be a leader in the global value-added cannabinoid-based product markets."