Mr. Nick Kuzyk reports

DIGICANN VENTURES DIVESTS OF AGRAFLORA EUROPE GMBH

Digicann Ventures Ltd. has signed and closed the sale of the shares of AgraFlora Europe GmbH to an arm's-length third party for gross cash proceeds of 500,000 euros. AgraFlora Europe was set up to be a commercial platform for the import, storage and wholesale distribution of cannabis products and ancillary products for medicinal purposes.

Digicann was the sole shareholder of AgraFlora Europe, a German limited liability company that held:

• 100 per cent of the shares in Farmako GmbH, a company having its registered office located in Frankfurt, Germany;
• 100 per cent of the shares in Farmako Genetics GmbH, a company having its registered office located in Frankfurt, Germany; and
• 100 per cent of the shares in The Good Company Luxembourg SARL, a company having its registered office located in Luxembourg.

Farmako itself held:

• 100 per cent of the shares in Farmako Ltd., a company having its registered office in Croydon, United Kingdom; and
• 100 per cent of the shares in Farmako ApS, a company having its registered office in Copenhagen, Denmark.

AgraFlora Europe served as a holding company and undertook no operative business activities. Farmako and Farmako Ltd. held various permits and licences, and owned intellectual property in connection with their business activities. At the time of the transaction, Farmako Genetics, The Good Company and Farmako Denmark carried on no active business operations.

This transaction is governed exclusively by the laws of Germany, subject to the exclusion of German conflicts of laws rules (IPR). The managing directors of the applicable companies within the AgraFlora Europe group of companies have been updated by the commercial register in Germany. No consulting, broker or finder's fees were paid or are to be paid in association with the transaction.

About Digicann Ventures Inc.

Digicann Ventures is a company focused on the cannabis industry.

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