Mr. Marc Lustig of CannaRoyalty reports

CANNAROYALTY COMPLETES STRATEGIC SALE OF EQUITY STAKE AND ROYALTY IN ALTMED FOR $8 MILLION TO TIDAL ROYALTY

CannaRoyalty Corp. has entered into a binding letter of intent with Tidal Royalty Corp., a leading provider of royalty financing to licensed U.S. cannabis operators, whereby Tidal Royalty will acquire the company's equity stake and royalty entitlement in Alternative Medical Enterprises LLC for a consideration of $8-million. CannaRoyalty will maintain the right to license MuV products in California, Nevada, Canada and other select markets.

AltMed is a licensed cannabis business operating in the state of Florida that exclusively manufactures and distributes a line of award-winning cannabis-infused products marketed under the MuV brand. NuTrae (doing business as MuV), is a subsidiary of AltMed and launched the MuV product line in the third quarter of 2016 exclusively in the Arizona medical market. As previously disclosed, CannaRoyalty currently holds a 6.14-per-cent ownership position in AltMed and has a 3.5-per-cent royalty on global net sales of the following MuV products: transdermal patches, metered dose inhalers and patent-pending transdermal gels.

"The sale of our equity stake and royalty in AltMed advances our stated strategy of realizing value for shareholders on assets that are deemed non-core to our business. The substantial gains from our successful investment in AltMed will provide CannaRoyalty with capital to continue to expand its distribution and brand network in the California market, while offering CannaRoyalty shareholders a significant return on investment," said Marc Lustig, chairman and chief executive officer of CannaRoyalty.

"We were early to identify the long-term potential in AltMed and MuV as vital players in the North American cannabis value chain and are confident that the businesses will be valuable additions to Tidal Royalty's diverse portfolio. As CannaRoyalty continues to grow and build a solid presence in California, we look forward to partnering with the experienced team at Tidal Royalty," Mr. Lustig added.

The aggregate consideration of $8-million will be in a combination of cash and Tidal Royalty's stock. Closing of the transaction is subject to, among other things, the satisfactory completion of due diligence, which is currently under way, and the receipt of all corporate and regulatory approvals.

About CannaRoyalty Corp.

CannaRoyalty is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world's largest regulated cannabis market. By building a world-class logistics platform and supporting contract manufacturing assets, the company intends to support the growth of new and established cannabis brands. The company believes California, home to some of the world's most discerning consumers and a nexus of information and trends, will be the point of inception for the global cannabis brands of the future.

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