Mr. Maurice Levesque reports

KNIGHTSWOOD FINANCIAL ANNOUNCES SECOND INVESTMENT IN CANNABIS INDUSTRY

In furtherance of the prior announcements that Knightswood Financial Corp. has identified the cannabis industry to be of interest for future investments, Knightswood Financial has made its second strategic investment in this space.

Streaming agreements

On April 26, 2017, the company entered into an agreement with PanCann Streaming Corp., a private Ontario company, to acquire the rights to all of PanCann's interests in 13 executed streaming agreements and assume the rights to several agreements in the final stages of negotiation between PanCann and various companies that either are licensed producers pursuant to the access to cannabis for medical purposes regulations or have applied to become licensed producers for a total consideration of $1-million.

Under each streaming agreement, PanCann has agreed that, upon the satisfaction of certain conditions precedent including PanCann having sufficient cash available for financing and entering into definitive agreements with the applicable streaming partner, it will provide financing to the applicable streaming partner in consideration for: (i) the issuance of shares of the streaming partner at an agreed-upon valuation; and (ii) an allocation of the streaming partner's cannabis production yield at either a fixed price or a cost-plus price. The yield component will be in respect of a defined period of time ranging from 10 to 99 years depending on the streaming partner.

The proceeds received by each streaming partner under the applicable streaming agreement will be used by it for construction financing for the streaming partner's current or proposed medical cannabis facility and may also include the purchase of real property in connection therewith. In certain instances, PanCann also has the right to provide additional financing in connection with any expansion of a facility (or construction of a new facility) in consideration for additional equity components and yield components.

The company's primary objective with the acquisition of the streaming agreements is to: (i) generate predictable revenue streams through payments received from each streaming partner, in connection with such streaming partner's sale of the applicable yield component, if any; (ii) work with each streaming partner to increase the equity value of the applicable equity component; and (iii) increase its cash flow per share by making accretive investments into new and existing streaming partners.

Board changes

The company announces that each of Mark Lerohl and Mark Walker has resigned as a director of the company and that Ian Gerald McKay has been appointed as a new director. The company would like to thank each of Mr. Lerohl and Mr. Walker for their many years of service.

Mr. McKay is and has been the chief executive officer of the Vancouver Economic Commission since September, 2013. Prior to this appointment, he served as the national director for the Liberal Party of Canada. A native of Penticton, B.C., he has led a distinguished career as an executive in international financial markets, as well as a political adviser to federal cabinet ministers. His career in the financial markets began in 1987 in New York when he was recruited out of UBC by Euro Brokers International Inc. From there, he went to Japan as managing director of Euro Brokers Tokyo. In 1998, he was seconded to London, England, as joint managing director of Euro Brokers London. Between 2006 and 2009, he worked for ICAP Capital Markets Inc. as the director of business development (Canada). From 2001 to 2005, he served as senior policy adviser to the Minister of Industry under former prime ministers Jean Chretien and Paul Martin. He studied political science and Asian studies at the University of Victoria and the University of British Columbia, and holds a master of business administration degree from Queen's University.

About Knightswood Financial Corp.

The company is an investment company that seeks to provide investor returns through investment fees and capital appreciation and has recently concentrated its investment efforts in the cannabis industry.

We seek Safe Harbor.