Origin House (fka ORHOF)

[JohnCM]

SUMMARY

During the second quarter of 2018, CannaRoyalty continued to build on the substantial progress made in
the first quarter. The Company consolidated manufacturing of its diversified brands portfolio in Kaya’s
manufacturing facility and in July, the Company expanded its operations to complement the existing
Kaya and Alta locations with the purchase of a licensed distribution and manufacturing facility in
Sonoma County. During the quarter, CannaRoyalty integrated and expanded Alta Supply’s distribution
network to include over 50 independent brands and a reach that includes the majority of retail
dispensaries in California.

Throughout the second quarter of 2018, management continued to build its team and position the
Company to capitalize on opportunities in California. This forward spending was critical in preparation
for the integration of Alta and Kaya, the upcoming close of the River Distribution (“RVR”) acquisition,
and for the growth opportunities ahead for the combined organization.
On June 19, 2018, CannaRoyalty announced that it had retained Canaccord Genuity Corp. as lead agent
to undertake a fully marketed private placement of unsecured convertible debentures (“Convertible
Debentures”) on a commercially reasonable efforts basis to raise gross proceeds of up to $30 million,
with the terms and conditions of the Convertible Debentures to be determined in the context of the
market.

Subsequent to the end of the second quarter of 2018, CannaRoyalty continued to make progress against
its strategic objectives through major announcements and initiatives, detailed below and set out under
the heading "Recent Developments".
The Company is focused on continuing to expand its distribution reach, increasing the sales of its owned
and distributed product portfolio in the California market, and adding strategic products and brands to
its distribution portfolio through investment, acquisition, and other contractual relationships.