Liht Cannabis Corp. (CSE:LIHT) (OTCQX:LIHTF) is pleased to announce that effective March 5, 2019, it has executed a letter of intent to partner with Colorado-based, premier “House of Brands” Cannabis One Holdings Inc. (CSE:CBIS) to bring Cannabis One’s popular retail concept The Joint^TM  to California for the first time. The Company, which owns California license holder, “420 Delivery Express Inc.” operator of “Green Leaf Wellness”, a dispensary located in the Coachella Valley of California, expects the rebranding of “Green Leaf Wellness”, under the banner of The Joint™, to occur shortly following the closing of the transaction.

Rahim Mohamed, CEO of the Company, remarked, “Liht Cannabis welcomes one of Colorado’s most experienced cannabis industry teams to the California retail market and is thrilled to partner with Cannabis One for its first The Joint™ corporate location in the state. We believe that Cannabis One’s track record of success and excellence, combined with its management team and board of directors’ extensive retail experience will be mutually-beneficial for LIHT and CBIS — Driving shareholder value for both enterprises.”

Liht Cannabis is excited to provide the launchpad for Cannabis One’s proposed The Joint™ expansion into California, with a Cannabis One management-targeted four (4) additional The Joint™ locations in the state and a further twenty (20) locations planned by Cannabis One management to arrive in state-legal jurisdictions across the U.S. in 2019, to complement this first transaction.

Under the terms of the LOI, consideration for the transaction will consist of the rebranding of the Licensed Premises, valued at US$250,000, under Cannabis One’s The Joint^TM banner, which is mutually-agreed to commence in the weeks following Closing; and US$350,000 in Class A subordinated voting shares of Cannabis One, such that the valuation for such CBIS Shares be equal to the greater of: (1) the ten day volume weighted average price for the period immediately trailing the execution of the definitive agreement, with a 10% discount applied to the VWAP; and (2) a 15% discount applied to the closing price of CBIS Shares immediately prior to this press release. CBIS Shares issued as consideration to Liht Cannabis shall be subject to a twelve (12) month contractual trading restriction following the date of issuance. Additionally, Cannabis One retains a right-of-first-refusal to purchase the remaining 49.0% of the Licensed Entity and related assets at fair market value in exchange for CBIS Share and/or cash consideration for a period of five years immediately following Closing. The Closing remains subject to customary due diligence for a transaction of this nature and execution of the Definitive Agreement to acquire an interest in the Licensed Entity.

Following the execution of the LOI, Cannabis One Holdings Inc. CEO, Jeffery Mascio commented, “The Cannabis One team is pleased by this exciting opportunity to enter the California market and we believe this acquisition positions our company exceptionally well to promote the expansion of our portfolio of brands within one of the world’s most vibrant markets.” Mr. Mascio continued, “While we are naturally excited to introduce California to our The Joint™ retail experience — named among Leafly^TM‘s top Colorado picks for several years running — and to roll-out our INDVR™ line of vaporizer products across the state, we also view this acquisition as a significant milestone for Cannabis One that now allows us to advance our partnerships within the California cannabis manufacturing and distribution space for exciting new strategic relationships.”

The Company anticipates this mutually-beneficial partnership will allow Liht Cannabis to benefit from Cannabis One’s combined 30+ years of management experience gleaned from Colorado’s maturing cannabis industry, and from exposure to Cannabis One’s expanding suite of portfolio brands — All of which are expected to provide Liht Cannabis with the opportunity to increase its focus on core assets located in Washington, Nevada, and British Columbia, Canada, in addition to its PureCloud 9 product line:

• Located just south of the Canadian border in Lynden, Washington, Liht Cannabis owns a 13.8-acre cannabis-zoned property. The Company entered into a LOI on December 18, 2018, which would provide its state-certified tenant, AlphaPheno, with a vertically-equipped facility, maximizing the capacity of its 28,000 ft² building in 2019;
• In North Las Vegas, Nevada, Liht Cannabis is currently operating 10,000 ft² of combined cultivation and processing space, with the potential for a total footprint of 300,000 ft² pending future build-out, located in the Apex Business Park. In conjunction, the Company has successfully secured a Nevada production license, allowing for the extraction and subsequent production of edibles, topicals, and associated products, such as infused pre-rolls and vape cartridges — Confirming Liht Cannabis as the first operational hydrocarbon extraction facility in North Las Vegas;
• In Canada, Liht Cannabis has selected a 40-acre site, located near Salmon Arm, British Columbia, for the build-out of its proposed 100,000 ft² cultivation facility. Liht Cannabis expects the market for premium cannabis to accelerate among consumers and intends to capture this growing category with its own, premium, organically-certified line of cannabis products;
• Furthermore, in Canada, the Company has entered into a joint venture agreement for a 486,000 ft² organic cultivation facility on a 120-acre parcel of land located in Chase, British Columbia. The project will be financed by 1186626 BC Ltd. with an approximate cost to lock up stage of C$81,600,000.
• Rounding out its portfolio, Liht Cannabis is proud to offer a healthy alternative to mainstream cosmetic products. The Company’s PureCloud 9 hemp-infused products are made up of botanical extracts and incorporates organic, cold-pressed hemp oil. Liht Cannabis’ new and re-formulated, whole-body hemp health line, PureCloud 9, has now been officially launched and is available online.

About Liht Cannabis

Liht Cannabis Corp. established in 2014, is a publicly-traded company investing in the medical and recreational cannabis space. The Company has rapidly expanded to include cultivation, production, and dispensary operations in key North American states, such as Washington, Nevada, and California state, and British Columbia, Canada, and is seeking expansion opportunities worldwide.

MARIJUANA INDUSTRY INVOLVEMENT:

Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.

Liht owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Liht’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Liht’s business is conducted in a manner consistent with state law and is in compliance with licensing requirements.

Copies of licenses are posted on Liht’s website. Liht has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.