Canopy Growth Corp (WEED)

[Tweedlede]

BED domestic production approved for sale + 8 more growing rooms.

Bedrocan Receives Health Canada Approval to Sell Domestically Produced Medical Cannabis

Health Canada Also Approves 8 More Growing Rooms

Immediate Increase in Product Revenue

TORONTO, July 28, 2015 - Bedrocan Cannabis Corp. (TSXV: BED) ("the Company" or "Bedrocan") announced today that it has received a license amendment from Health Canada allowing for the sale of the Company's domestically produced medical cannabis. Bedrocan has been growing six proprietary genetic strains of standardized cannabis at its new production facility since February, and eight harvests have been completed successfully to date. The Company can begin immediately taking orders for sales of its existing inventory.

In addition, Health Canada has also approved eight more growing rooms at Bedrocan's production facility in the Greater Toronto Area. A total of 26 of 34 production rooms are now licensed, providing for production capacity of 3,000 kilograms per year.

"We are excited to be able to provide Canadian-grown, standardized cannabis to our registered patients," said Marc Wayne, President and CEO. "We have now transitioned our business successfully and on schedule from our reliance on imported Bedrocan product to managing our own domestic production to meet the specific needs of our growing population of medical cannabis patients. We will now focus on expanding our marketing, medical outreach and education initiatives, emphasizing the value and advantages of our standardized, pharmaceutical grade medical cannabis products."

With the new Health Canada approvals, sales of domestic inventory will result in an immediate increase in product related revenue. The Company was previously approved to import a maximum of 240 kilograms per year of product from its licensor Bedrocan Beheer BV, via the Dutch Ministry of Health. Bedrocan is now approved to produce and sell its Canadian-grown, genetically identical strains of medicinal cannabis, with production capacity equating to 3,000 kilograms per year.