Mr. Chris Heath reports

VENTURA CANNABIS (VCAN) GETS CONDITIONAL REGULATORY APPROVAL TO CLOSE KUSH RUSH ACQUISITION

Ventura Cannabis and Wellness Corp. has received conditional regulatory approval from the Bureau of Cannabis Control to close its acquisition of Kush Rush, a Sacramento, Calif., dispensary and delivery service, which will serve as a template for the California dispensaries the company has under contract or application. Kush Rush is expected to generate $500,000 in annual revenue, with operational EBITDA (earnings before interest, taxes, depreciation and amortization) margins of 15 per cent, for the first full year of acquisition.

The owner-operator will continue to operate the business, with certain incentives to increase sales and profits. The company will pay $210,140 in cash consideration at closing, representing the entire cash component of the deal. Additionally, the company will issue 1,157,459 shares, or $428,260 in value, to the owner-operator for total consideration of $638,400.

Highlights:

• Ventura Cannabis and Wellness has executed binding purchase agreements to acquire five dispensaries, with the last three awaiting regulatory approval in California.
• Ventura Cannabis and Wellness has executed a binding purchase agreement to acquire a vertically integrated cannabis product company awaiting regulatory approval in California.
• Ventura Cannabis and Wellness has the balance sheet and cash flow to close these deals that comprise the platform to achieve the previously announced annual targets.

Three ways to increase revenue after closing:

1. Increasing the customer base using targeted Ventura Cannabis and Wellness products for seniors and professionals;
2. Increase customer spending with higher-quality and higher-priced Ventura Cannabis and Wellness products;
3. A growing overall market -- increasing the estimated annual revenue for the dispensaries under contract for revenue growth after closing, based upon operational improvements and marketing initiatives.

Management will look to improve revenues from the acquisition with similar operational and marketing initiatives, as it has implemented with the Amberlight acquisition, which has yielded success since the acquisition in May, 2019.

We seek Safe Harbor.