Mr. Ray Grimm reports

LAGUNA COMPLETES DEFINITIVE EQUITY AGREEMENT WITH CARLSBAD NATURALS FOR NANO-AMPLIFIED CBD WATER

Laguna Blends Inc. has signed a definitive agreement with Carlsbad Naturals LLC, whereby Laguna and Carlsbad have entered into an equity acquisition agreement for the purpose of pursuing mutually beneficial business opportunities in the cannabidiol bottled water industry and CBD ingestible products industry.

Carlsbad is a leader in the distribution and sales of CBD bottled water in the United States through its unique and proprietary process of infusing CBDs though nanotechnology. Carlsbad Naturals had revenues of $521,000 from Sept. 1, 2016, to Dec. 31, 2016. In addition to the current sales growth of Carlsbad, Laguna plans to generate CBD water sales through its Club 8 on-line marketplace and its business-to-business distribution channel in the U.S. and Canada.

Ray Grimm, president and chief executive officer of Laguna Blends, stated: "The partnership with Carlsbad firmly solidifies Laguna as a unique player in the multibillion-dollar bottled water and functional beverage industry. Carlsbad CBD water was formulated with the sole purpose of creating a high alkaline water with the added benefits of CBDs. Many believe this to be the next evolution in the water industry, providing unique health benefits due to the proprietary nanotechnology. Carlsbad CBD water provides anti-oxidants at the cellular level along with providing cellular hydration and energy. Laguna is currently in discussions with Carlsbad regarding further business opportunities including but not limited to the acquisition of controlling interest."

Charles Vest, vice-president of sales of Laguna Blends's new hemp and CBD on-line marketplace, Club 8, said: "According to new data from Arcview Market Research, cannabis consumers in North America spent a combined $53-billion in cannabis consumables in 2016. The legal supply of cannabis product increases in North America because several U.S. states have recently joined the list of legalizers while at the same time lawmakers are expected to begin the process of recreational legalization in Canada later this year. The estimated $53-billion in sales is more than was generated by McDonald's and Starbucks combined in 2016.

"The high amount of existing consumers differentiates cannabis from other major consumer-market investment opportunities in history. There is a huge demand for clean cannabis products in our industry today. We just need to move demand for an already widely popular product into safe and legal channels. Experts see the biggest growth in sectors like edibles and concentrates. It is much easier and safer to buy these products from a trusted retailer than to make them at home. Not only Carlsbad's nano-amplified CBD water but all of our current and upcoming products in Club 8 will benefit from this massive and unstoppable growth trend."

Pursuant to the terms of the transaction, Laguna has up to 75 days to acquire a 19-per-cent equity stake in Carlsbad. Laguna will initially purchase 19-per-cent equity interest in Carlsbad for a one-time payment of $250,000 (U.S.) paid for in cash and $546,000 paid for in Laguna common shares for a total purchase price of $796,000 (U.S.). Laguna is currently in discussions about acquiring additional equity interest for majority control.

The common shares issued for the initial 19 per cent are subject to lock-up and or leak-out provisions whereby the first one-12th of the common shares will be released four months and a day after issuance. One-12th will be issued every subsequent month thereafter.

About Laguna Blends

Laguna Blends is a market leader in the distribution of hemp and CBD products. Laguna's growth strategy includes acquiring and incubating companies who formulate and or manufacture hemp products. It's Laguna's intent to provide the highest-quality hemp product experience for the end-user, utilizing a proprietary nanotechnology in many of its consumable and topical skin care products.

We seek Safe Harbor.