Emblem Announces $3 Million Strategic Equity Investment in Natura Naturals and 9,000 kg Supply Agreement over three years

TORONTO, July 18, 2018 (GLOBE NEWSWIRE) — Emblem Corp. (TSXV:EMC) (TSXV:EMC.WT) (OTCBB:EMMBF) (“Emblem” or the “Company”), announced today that it is making a strategic equity investment (the “Equity Investment”) into Natura Naturals Inc. (“Natura”), a 662,000 square foot licensed greenhouse cultivator of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The companies have also signed a three-year cannabis supply agreement (the “Agreement”) to provide Emblem up to 3,000kg of high-quality cannabis flower per year from Natura’s Phase 1 cultivation facility.

Based in Leamington, Ontario, Natura employs proprietary processes to produce high-quality cannabis in its state-of-the-art greenhouse facility. The first 155,000 square feet of the facility is currently being converted as part of its Phase 1 retrofit and is expected to be complete in August 2018 and capable of producing 15,000kg of cannabis per year. The Phase 2 conversion will retrofit the remaining 507,000 square feet for cannabis cultivation and is expected to bring total production capacity to approximately 70,000kg per year by mid-2019. Natura holds a genetic library of 32 cannabis strains, which will be made available to Emblem.

Equity Investment

Under the terms of the Equity Investment, Emblem will invest $3,000,000 in cash in Natura for 3,750,000 common shares of Natura and 3,750,000 common share purchase warrants exercisable at $1.05 for 24 months (subject to acceleration provisions). Post-closing, Emblem will own approximately 5% of Natura’s outstanding shares on a non-diluted basis, and 7% on a fully diluted basis.  Closing of the Equity Investment is subject to customary conditions and is expected to close later this week.

“We are extremely excited about the opportunities that our new-found Emblem partnership holds for us. With our first commercial LP sale, the future growth, venture possibilities, and business transactions that lie ahead for Natura seem very promising,” said Ben Nikolaevsky, President and CEO of Natura Naturals.

Supply Agreement

Emblem has signed a three-year supply agreement with Natura pursuant to which Natura will supply Emblem with up to 3,000 kg of high quality dried cannabis flower per year at preferred wholesale pricing. Initial product deliveries to Emblem are expected to commence in October, 2018 with a total of 750kg deliverable for the balance of 2018.  The Agreement increases Emblem’s total available cannabis by approximately 37.5% in 2018, and significantly accelerates Emblem’s product availability to coincide with the launch of the adult-use market in October 2018.

“Our partnership with Natura quickly accelerates our time to market, with an immediate increase in product volume, supporting both our medical and adult-use demand,” said Nick Dean, President and CEO of Emblem. “We have been very impressed with the Natura leadership team, their cultivation capabilities, and the quality of production they are achieving within their Phase 1 retrofit. Emblem has found a valuable partner in Natura and we are confident our relationship will continue to strengthen and grow as Natura completes Phase 2 of their retrofit, bringing online an additional 55,000 kgs of production in 2019.”

About Natura Naturals
Based in Leamington, Ontario, Natura Naturals is a licensed cultivator of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The company’s cultivation facility is capable of producing plants in a 662,000+ square feet greenhouse facility under optimal growing conditions. Natura grows high-quality hydroponic cannabis which can be used for various medical and recreational applications. Natura has an extensive genetics library and continues to develop innovative products for the Canadian and International marketplace.

About Emblem
Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Emblem’s state-of-the-art indoor cannabinoid factory and research and development facility is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.

For further information contact:

Ethan Karayannopoulos 
Investor Relations 
Emblem Corp. 
647.748.9696 
ethank@emblemcorp.com 

Alex Stojanovic
Chief Financial Officer
Emblem Corp. 
416.923.1331
alexs@emblemcorp.com

Sandy Logie
SVP Business Development
Natura Naturals Inc.
647.216.8997
logie@naturanaturals.ca

Ian Atacan
Chief Financial Officer
Natura Naturals Inc.
416.562.3220
ian@naturanaturals.ca

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which Emblem believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While Emblem is not aware of any misstatement regarding any industry or government data presented herein, the medical marijuana industry involves risks and uncertainties and is subject to change based on various factors.

Forward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in the Company’s December 31, 2017 Management’s Discussion and Analysis, which has been filed with the Canadian Securities Administrators and available on www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.

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