Fiore Cannabais Ltd. (FIORF)

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LIHT NEWS

Liht Cannabis Corp. Announces Signing of $10,000,000 Non-Dilutive Development Agreement For Its Project In Celista, British Columbia
February 7, 2019, Kelowna, BC

Liht Cannabis Corp. (CSE: LIHT) (OTCQX: LIHTF) or the “Company”) is pleased to announce, further to news releases dated June 25, 2018, August 21, 2018 and September 26, 2018, the Company has entered into a development agreement (the “Development Agreement”) dated January 30, 2019 with 1186626 B.C. Ltd., a private British Columbia corporation for its project in Celista, British Columbia.

The Development Agreement with 1186626 B.C. Ltd., provides Liht with C$10,000,000 of non-dilutive financing to build-out operations in British Columbia. Funding will be provided in tranches over a two-year period based on certain development and production milestones. The Company is not selling an interest in the Celista project.

The Company has agreed to, over time, pay back the capital contributions, plus interest at a rate of prime plus 5% and 50% of the potential distributable cash from the Celista cannabis operations, if any, for three (3) years after the date that all ten (10) facilities (each 10,000 square feet) are concurrently in full production and fully operational. The estimated timeline to complete the construction of all ten (10 facilities) is conservatively two (2) years at an approximate cost of C$2,500,000 per facility.

The first two (2) 10,000 sq. ft buildings continue to meet early construction milestones.

Building 1
HVAC, plumbing, electrical and security installations are in progress. All equipment installation will be complete in approximately six (6) weeks.

Building 2
Design and construction of the foundation is complete. Erection of the pre-fabricated structure has begun. The building will be complete to lock-up in approximately six (6) weeks.

Construction progress can be viewed at https://lihtcannabis.com/british-columbia/

The remaining eight (8) buildings will be constructed with non-concrete base foundations. The Company anticipates completion to full build-out prior to the estimated two (2) year construction schedule.

Further to our new release dated January 17, 2019, Liht’s wholly-owned subsidiary, Full Spectrum Medicinals (“FSM”), has secured the exclusive rights to the S5 Agro Technology Suite (the “S5-ATS”) proprietary technology. This includes Quick Response Holographic Labeling System, Agro-View, Agrowavetech, Agro-Array. The S5-ATS instruments are so advanced that they have the potential to revolutionize a new standard in agricultural analysis allowing crop insurance to be secured.

Liht will use this technology in all of its cultivation facilities in Canada.

“This opportunity, supported by our propriety cultivation technology, positions us to take full advantage of the organic market once licensed and certified.” Linda Sampson, President & COO