Core One Labs Inc. (CLABF)

[Sam Dan]

Very favourable tax relief for LDS shows support for management
("LDS" or the "Company") is pleased to announce that the City of Adelanto, where the Company's state-of-the-art facilities are located, in the second and final reading voted to reduce its cannabis tax.

Last night the City of Adelanto in the second reading of the ordinance to reduce the tax on Transportation, Distribution, Manufacturing, and Cannabis Testing Lab Services from 5% down to 1% voted 4 to 1 in favor of the reduction. The City council voted 4 to1 to reduce the cultivation tax from $5 per month per square foot to $0.42 cents per month, per square foot. The dispensaries tax was likewise reduced from 5% down to 3%. This decision comes in line with California voting to reduce the cannabis cultivation tax statewide. The reduction in city taxes will be a positive incentive for cannabis businesses to operate in Adelanto.

The Company's CEO, Brad Eckenweiler, stated, "We understand that this was a difficult decision for the city, but without the tax reduction the cannabis industry in Adelanto would have been diminished to a couple of small manufacturers. The green zone would be abandoned and property values would have evaporated to a fraction of today's values. The increased property taxes the city receives is directly associated with the recent property value increases, which without tax reform would return to the dismal years prior to the recent 500% increase caused by cannabis business speculation and property inflation. The Adelanto city council took the necessary steps to secure a strong and sustainable Cannabis business community here in Adelanto. The State of California is also lowering taxes to reduce the illegal, unregulated, contaminated, and pesticide-ridden grey/black market products, which have had price advantages partially due to the higher taxes." The LDS subsidiaries applaud the actions of the city council and look forward to a long a mutually beneficial future together.

The Company will continue to update the market on all events as they become relevant.

About CSPA Group, Inc.

CSPA Group, Inc. is located in Adelanto, California and is a City-Permitted and State-Licensed manufacturer and distributor/transporter in the California cannabis industry. The company manufactures extracted oils and distillates, and produces CannaStrips™ under a license agreement with Lifestyle Delivery Systems Inc. a British Columbia company.
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