604.687.2038 info@sowcannabis.ca

NEWS RELEASE

Vancouver, British Columbia, December 7, 2018 – Q Investments Ltd. (the “Company”) announces that it has entered into a subscription agreement (the “Agreement”) with Delta Organic Cannabis Corp. (“DOC”), a privately held Toronto‐based cannabis investment company, to make a strategic investment, by way of private placement, for $7,500,000. Under the terms of the Agreement, the Company will acquire 7,500,000 common shares of DOC at a price of $1.00 per common share representing approximately 37.5% of the outstanding equity of DOC.

DOC’s sole asset is an equity participation and earn‐in agreement (the “Earn‐In Agreement”) with Agraflora Organics International Inc. (CSE: AGRA) (“AGRA”), a growth‐oriented and diversified company focused on the international cannabis industry, for the development of a large scale 2.2 million square foot commercial medical cannabis cultivation operation in Delta, British Columbia. The retrofit of the 2,200,000 square foot complex has been split into three phases: Phase 1 includes the retrofit of 350,000 square feet, including post‐production facilities, completion scheduled for Q1 2019; Phase 2 includes an additional 1,450,000 square feet to be completed by Q4 2019; and the final phase consisting of 400,000 square feet. Initial activities of the retrofit include site preparation for propagation operations including 250,000 square feet of flowering area, development of standard operation procedures and completion of security audit and development of overall plan, plus ordering of long lead time items and planning with plant genetic experts in preparation for the first crop. To date DOC has advanced $12,500,000 for 27,863,775 common shares of AGRA and will advance a further $27,500,000 for an additional 61,300,305 common shares of AGRA under the terms of the Earn‐In Agreement. The $7,500,000 investment by the Company will be utilized by DOC to fund the second tranche of their investment into AGRA. In addition to an equity interest in AGRA itself, DOC will receive a 20% direct interest in the facility itself. Additionally, AGRA has ownership in several cannabis companies, including AAA Heidelberg and Propagation Services Canada in Canada, a large‐scale greenhouse project in Australia, and is actively pursuing other opportunities within the cannabis industry.

ON BEHALF OF THE BOARD

John Martin

Director

 

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