Maricann Provides Update on Financing, NanoLeaf Acquisition and Other Matters

TORONTO, ONTARIO--(Marketwired - Oct. 19, 2017) -

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Maricann Group Inc. (CSE:MARI)(CSE:MARI.CN)(CNSX:MARI)(OTCQB:MRRCF)(FRANKFURT:75M) ("Maricann" or the "Company") announces that insiders of the Company have agreed to purchase $7,000,000 of convertible debenture units (the "Convertible Debenture Units") in its previously announced private placement offering (the "Offering"). Convertible Debentures to be sold to insiders as part of the Offering aggregating $6,000,000 in principal amount will be subject to a higher conversion price of $1.68. There is no certainty that the Offering will be completed.

NanoLeaf Acquisition

Subsequent to its August 22, 2017 news release, Maricann has been working with NanoLeaf Technologies ("NanoLeaf") to determine whether the VESIsorb technology licensed from Vesifact AG ("Vesifact"), the producer of VESIsorb, is compatible with both THC and non-THC cannabinoid products. While they have not yet been able to conduct the testing required to confirm VESIsorb's compatibility, Vesifact has indicated that it will, at Maricann's expense, take the steps necessary to complete the testing following closing. There can be no assurances that the testing will be successful or that Maricann will receive the expected benefits from the NanoLeaf transaction. The closing of the NanoLeaf acquisition is expected to occur concurrently with the closing of the Offering. There is no certainty that the NanoLeaf acquisition will be completed.

Operational Update

Maricann reports that it has experienced a construction delay in the flowering area of the expansion of its facility in Langton, Ontario caused by ground water encountered during the build. The construction delay is expected to result in out of pocket costs of approximately $765,000, a 2.47% overage for the Phase 1 Expansion. The construction delay in the flowering area will cause production from that portion of the project to be delayed by a maximum of 65 days due to Province of Ontario Ministry of the Environment permits required. The rest of the project remains on track and on budget, with mothering, cloning, and vegetation areas not affected and able to commence on schedule. With the mothering, cloning and vegetative areas unaffected, the Company believes it will still meet its first production target from its expansion in Q2 2018.