Mr. Afzal Hasan reports

CANNAROYALTY PROVIDES STRATEGIC FINANCING TO BRAND PARTNER UTOPIA CANNABIS TO DRIVE REVENUE GROWTH

CannaRoyalty Corp. and its subsidiary, RVR Distribution, have agreed to provide strategic financing to support the expansion and growth of Utopia Cannabis, an award-winning California-based cannabis brand focused on curating clean, best-in-class cannabis flowers, extracts and edibles. Under the agreement, CannaRoyalty will advance $750,000 (U.S.) to finance a forward purchase of manufactured products, including Utopia-branded jarred extracts, vaporizer cartridges and edibles.

The advanced funds will be used as working capital to accelerate Utopia's manufacturing and production schedule at its newly permitted Type 7 manufacturing facility.

Afzal Hasan, president and general counsel at CannaRoyalty, said: "At the end of 2017, we highlighted our mission to become the home of origin for the global cannabis brands of the future, leveraging our access to distribution, manufacturing infrastructure and resources to help promising cannabis brands scale up. Through the course of this year, we've been busy building that home of origin for tomorrow's global brands, specifically for authentic entrepreneurs like Utopia to share with us. This financing represents the first of many in which we will provide these partners with the tools and resources that they need to lead the industry, first locally in California and then eventually on a global scale. And importantly, we are doing this on non-dilutive terms that allow our brand partners to reap the benefits of their hard work. We are confident that our unique approach makes us strategic partner of choice for the global cannabis brands of tomorrow."

"At Utopia, we take pride in delivering an authentic and best-in-class cannabis experience to our consumers. Since 2014, we have combined premium ingredients, conscious production techniques and a commitment to transparency to manufacture trusted, quality, award-winning products. We are excited to strengthen our existing relationship with RVR through this financing with CannaRoyalty. This working capital will support our continued growth as we meet consumer demand for our products," commented Kaiya Bercow, co-founder and chief executive officer of Utopia Cannabis.

Transaction summary

• CannaRoyalty will provide Utopia with $750,000 (U.S.) toward the prepayment of Utopia-branded manufactured products, including jarred extracts, vaporizer cartridges and edibles.
• Repayment will be made in the form of state-compliant cannabis products.

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. CannaRoyalty has developed a diversified portfolio of assets within the cannabis sector, including research, infrastructure and intellectual property to support its existing brands, partner products and distribution networks.

We seek Safe Harbor.