Tinley’s Long Beach Facility to Produce ‘Green Monké’ Sodas on Can Line; Tinley’s Closes First Tranche of Non-Brokered Private Placement - Seite 2

First Tranche of Non-Brokered Private Placement

The Company is pleased to announce that Richard Gillis, President and Chief Operating Officer of Tinley’s USA, and member of Tinley’s Office of the CEO, has purchased 2,080,666 units (“Units”) of the Company under the first tranche of a non-brokered private placement (the “Private Placement”) at a price of C$0.15 per Unit for gross proceeds of approximately C$312,000. Each Unit is comprised of one common share in the capital of Tinley’s (“Common Shares”) and one common share purchase warrant (each, a “Warrant”). Each Warrant is exercisable into one Common Share (a “Warrant Share”) at a price of C$0.20 for a period of 24 months following the date of issuance. This investment brings Mr. Gillis’ aggregate position in the Company to 4,080,666 Common Shares. The net proceeds from the Private Placement will be used for working capital, capital expenditures, marketing, establishing new business lines and exploring potential mergers and acquisitions. The Company intends to complete additional tranches of the Private Placement from time to time in accordance with applicable regulatory requirements; however, there can be no assurance that any additional tranches will be completed.

“I am investing once again in Tinley’s to tap into what I believe is an unrealized opportunity within the cannabis industry”, said Richard Gillis. “The popularity of THC-infused beverages is accelerating, and I believe that Tinley’s, through its Long Beach Facility, with a newly activated distribution licence and growing menu of production methods and packaging capabilities, will continue to drive value by serving a growing roster of high-quality and high-volume client brands.”

Regulatory Matters

The subscription for Units by Mr. Gillis is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61- 101”). The Company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of Mr. Gillis’ purchase of Units. Further details will be provided in the Company’s material change report to be filed on SEDAR. The Company did not file a material change report in respect of the related party transaction less than 21 days prior to the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Offering in an expeditious manner.