Mr. Jason Conroy of MMJ reports

MMJ GROUP HOLDINGS LTD (MMJJF): ADDITIONAL INFORMATION REGARDING SHAREHOLDING IN HARVEST ONE

Further to the announcement made by MMJ Group Holdings Ltd. previously, regarding its shareholding in Harvest One Cannabis Inc., the board of directors of MMJ's current strategy is to remain a major shareholder of Harvest One and support its management team in the execution of its business plan.

In this regard, the MMJ board notes that Harvest One appointed a new chief executive officer, chief operating officer and general counsel, and members to the company's board of directors during the last fiscal quarter 2019. This new team is in the process of executing a revised strategic direction for Harvest One, which includes:

• A 13,000-square-foot expansion already under way of United Greeneries' primary operations in Duncan, B.C., that will triple the output of the facility;
• Continued construction of a 60,000-square-foot indoor flowering facility at its Lucky Lake property in Saskatchewan;
• Driving sales growth for Satipharm, including the Gelpell microgel capsules in the European Union and as Harvest One's primary brand for medical offerings throughout Canada;
• Continued sales growth of the Dream Water product ranges (which incurred record revenue growth for the last fiscal quarter) and development of cannabinoid infused product lines for the North American market;
• Furthering other commercial transactions, such as the multiyear extraction services agreement with Valens Groworks Corp. for cannabis extraction and value-added services, and the investment in Burb, a new retailer of cannabis and cannabis-related products based in British Columbia;
• Harvest One also remains extremely well capitalized with approximately $48-million in cash at the end of the last quarter.

MMJ owns 55,557,994 shares in Harvest One for a 30.5-per-cent shareholding, and this remains MMJ's most significant investment to date.

The MMJ board is confident that the Harvest One management team will execute on its future business plan and that this should lead to an increase in the value of MMJ's shareholding in Harvest One.