Mr. Frank Kordy of Gunpowder reports

GUNPOWDER CAPITAL CORP., ACQUIRES 658,182 UNITS OF HARBOUR STAR CAPITAL INC.

Gunpowder Capital Corp. has acquired 658,182 units of Harbour Star Capital Inc., doing business as EastWest Biosciences Group. As at the date of this press release and due to the completion of this announced transaction, Gunpowder in total now owns 774,849 common shares of Harbour Star.

The units were issued to Gunpowder at a price of 27.5 cents per unit. Each unit that Gunpowder acquired consists of one common share of Harbour Star and one-half of one common share purchase warrant of Harbour Star. Each whole warrant shall entitle Gunpowder the ability to acquire one additional common share at a price of 50 cents per common share for a period of 12 months from the date of issuance, subject to an acceleration clause, whereby if, following the closing date, the 10-day volume-weighted average trading price of the common shares of the corporation on the principal market on which such shares trade is equal to or exceeds 75 cents. On Oct. 4, 2018, Harbour Star announced, by press release, that it had closed a private placement offering, of which the units issued to Gunpowder were part of that offering.

The corporation acquired the units by retiring the remaining principal amount of $181,000 that EastWest Biosciences owed Gunpowder through a secured promissory note. The note was previously secured by a second mortgage charge in favour of Gunpowder on a building owned by EastWest Biosciences. Gunpowder has removed the second mortgage on the aforementioned property.

About EastWest Biosciences Group

EastWest Biosciences is a seed-to-sale organization that offers world-class manufacturing and premium hemp-based consumer goods.

About Gunpowder Capital Corp.

Gunpowder Capital is a merchant bank and advisory services firm based in Toronto, Ont., Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing, and advisory services.

We seek Safe Harbor.