Core One Labs Inc. (CLABF)

[Sam Dan]

latest development by management
" ("LDS" or the "Company"), announces signing of a letter of intent ("LOI") with National Green Biomed Ltd. ("NGB") to manufacture CannaStripsTM in Mission, British Columbia, Canada. The LOI replaces and supersedes the Memorandum of Understanding the Company announced on February 27, 2019, and solidifies the intentions of both parties to continue to work towards the entry into a definitive agreement for joint venture ("JV") to build a manufacturing facility in British Columbia to produce CannaStripsTM.

Under the terms outlined in the LOI, the JV will build a manufacturing facility in Mission, British Columbia, Canada to produce CannaStripsTM. NGB will provide an extension of its Rosebud Health Canada License to the JV and land for the new facility to manufacture CannaStripsTM; the Company will invest a total of CAD$255,000 in a private placement for shares of common stock of NGB at $0.30 per share. The private placement will be completed in three tranches as follows:

The first payment of $75,000 will be made upon signing a definitive agreement;
The second payment of $75,000 will be made 90 days after the definitive agreement becomes effective; and
The third obligation of $105,000 will be satisfied with the exercising of a $0.30 warrant per share upon issuance of a license from Health Canada.
In addition to the funds invested as part of the private placement, LDS will be responsible for paying for the permits, design, and build-out of the facility, and will share the consulting expenses associated with the Health Canada licensing. NGB will receive a royalty on all sales from the Mission facility, specifically, a 5% royalty for sales in Canada and a 3% royalty on all sales outside of Canada. The Mission facility will be required to purchase raw material from NGB and provide custom processing for future products or business opportunities presented by NGB.

NGB also agrees to sell a 50% stake in one of its' 25-acre parcels to LDS for $375,000. LDS will be able to build its facility on up to two acres of this parcel. NGB will retain the right to choose uses for the balance of the 23 acres but will work closely with LDS to find uses suitable and profitable for both parties. These uses may include, but will not be limited to, the growing of cannabis for use as feedstock for the LDS facility which will be then sold to LDS at a discounted price to what the general market bears.

The Company's CEO, Brad Eckenweiler, commented, "The establishment of a Canadian CannaStripsTM manufacturing and distribution facility has been a goal of the Company for some time. Our agreement with NGB has put the Company on a path to accomplish this goal in 2019. Hopefully, with this agreement and favorable legislation in the near future CannaStripsTM can be shipped around the globe. I don't believe there is another delivery system better suited to overcoming the challenges of the social perception associated with traditional cannabis consumption and the concerns of unintended sharing of cannabinoids with others nearby. The discreet and inoffensive nature of CannaStripsTM is an alternative for a new market of customers looking for a stealth experience. It is also the most affordable cannabis product available."

The Company will keep its shareholders apprised of the Company's progress on this project.

About National Green Biomed Ltd.

Based out of Richmond, BC, Canada, National Green Biomed Ltd. is a Late Stage Applicant for Licensed Production under the 2018 Cannabis Act. With its 18,000+ft2Richmond facility, and lush 68-acre property in Mission, BC, NGB is poised for the next phase and is preparing for site development construction to begin in 2019. NGB is well situated to service Greater Vancouver; the facility is within 15 minutes of the Vancouver International Airport and only 30 minutes from downtown Vancouver. NGB has a research and development component and has committed to donating $1Mil to UBC (https://www.ngbiomed.ca/2017/04/10/hello-world/) to investigate Cannabis for HIV/AIDS, pain management, and addressing the opioid crisis within Canada. NGB is committed to producing high quality health and lifestyle products, staking their claim in the burgeoning industry for CBD, edibles, and boutique coconut based products.