Mr. David Shpilt reports

INTERNATIONAL CANNABIS ENTERS INDIA; PLANS TO SUPPLY PREMIUM CANNABIS TO INDIA'S VAST ADDRESSABLE PATIENT POPULATION

ICC International Cannabis Corp. has completed a $1.5-million (U.S.) strategic investment in Indus Cannabis Company Corp. (IndusCann), a private entity actively pursuing cannabinoid commercialization in India.

IndusCann has entered into an exclusive three-year research and development partnership agreement (RDPA) with the Indian Institute of Integrative Medicine (IIIM). The IIIM is a premier national research institute under the Council of Scientific and Industrial Research (CSIR) of India. The IIIM is dedicated to the discovery of pharmaceuticals derived from natural products, such as medicinal plants and microbial species.

In collaboration with the IIIM and the CSIR, IndusCann has been mandated with:

• The detection and subsequent commercialization of cannabinoid-derived pharmaceutical compounds for the Indian marketplace;
• Establishing clinical cannabinoid efficacy and expediting clinical pharmaceutical pathways for phytopharmaceutical products;
• Collaborating with Indian state and federal agencies to devise sustainable cannabis regulations, including commercial production, import/export and distribution;
• The development of SOPs in preparation of India's highly anticipated commercial cannabis cultivation regulations;
• Comprehensive mapping and cataloguing campaigns of over 500 unique landrace cannabis genotypes and phenotypes, specifically those sourced from the widely celebrated Hindu Kush and Himalayan regions;
• Centralizing cannabinoid intellectual property and product development through complementary research and development partnerships with the All India Institutes of Medical Sciences (AIIMS), as well as with leading Indian hospitals;
• Administering both human and animal cannabinoid-centric clinical trials

IndusCann also anticipates receipt of an Indian cannabis import/export licence, which is expected to permit the export of EU-GMP-certified (European Union good manufacturing practices) medical cannabis to the European Union and the Asia Pacific region. In anticipation, the company is currently working to design and construct the first purpose-built, EU-GMP-complaint indoor grow, processing and packaging facility. This licence will also enable the importation of select, high-value strains and tissue culture from pre-eminent European seed banks as well as Tier 1 Canadian licensed producers.

Concurrently, ICC and the company have entered into a binding letter of intent dated April 28, 2019, pursuant to which the companies will enter into a commercial rights and supply agreement, contingent to IndusCann receiving the aforementioned import/export licence, whereby:

• ICC will supply the company with up to 30 million grams of premium cannabis flower, as well as bulk cannabis resin, bulk cannabidiol isolate and bulk cannabidiol distillate, for initial research and development initiatives and eventual commercial applications.
• ICC has secured right of first refusal (ROFR) to purchase a portion of IndusCann's future EU-GMP-complaint production at cost plus 20 per cent.
• ICC will act as the company's European distributor for cannabis products.
• ICC will be granted co-ownership of data derived from the company's cannabinoid clinical trials, with product to be supplied by ICC.
• ICC will be granted co-ownership in all cannabis product formulations developed under the IndusCann corporate umbrella.
• ICC International Cannabis has been granted a call option for further equity participation in IndusCann Private Ltd. for an additional $4-million (U.S.).

The commercial rights and supply agreement does not explicitly reference any supply-side guarantees and is proposed to extend over a period of three years. A fixed-pricing matrix will be finalized upon IndusCann's receipt of the aforementioned import/export licence.

In addition to ICC's proposed 30,000-kilogram, three-year supply agreement with Wayland Group Corp. (see ICC news release dated April 23, 2019), the company's internal forecasts indicate that, upon completion of its continuing production buildouts in Denmark, Colombia and Lesotho, ICC will be equipped with the necessary cultivation capabilities to satisfy the IndusCann supply agreement.

Vijendra Gairola, an economic development veteran as a chief representative for India, co-founder of IndusCann Research Private Ltd., commented: "With the completion of this transaction, IndusCann becomes firmly anchored to achieving all of its research and commercial cultivation objectives.

"International Cannabis's commitments will support IndusCann's unique ability to conduct large-scale research for both human and veterinary use. Their global supply chain of GMP-compliant medical cannabis and deep experienced team of subject matter experts accelerate IndusCann on its path to being a long-term supplier to India's future medical marketplace."

David Shpilt, chief executive officer of ICC International Cannabis, commented: "This strategic deployment of capital affords ICC pre-eminent exposure to one of the world's largest domestic cannabis markets. Together, we are positioned to capitalize on a first-mover advantage within India's vast addressable patient population.

"In addition to its R&D agreement and anticipated import/export licence, the company is armed with deep-seated relationships within India's proliferating generic pharmaceutical manufacturing industry, which is one of the largest in the world. India's established generic pharmaceutical manufacturing infrastructure will position the country as the transcendent jurisdiction for cannabis finishing/processing, as well as eventual product formulations.

"It is estimated that over 600 million Indians experience symptoms derived from indications which medical cannabis may treat, remedy or, ultimately, alleviate. The company's proposed Indian commercial rights and supply agreements will enable ICC to realize sustainable cash flows, all while advancing clinical cannabinoid efficacy and expediting clinical pharmaceutical pathway for phytopharmaceutical products."

The company has terminated its previously announced acquisition of Balkan Cannabis Corp. (see ICC news releases dated Dec. 21, 2018).

A finder's fee is payable on this transaction.

About ICC International Cannabis Corp.

ICC International Cannabis, through its subsidiaries, has operating assets and is developing a world-class platform for cultivation, extraction, formulation and distribution across the globe in: the United Kingdom; Denmark; Poland; Switzerland; Germany; Macedonia; Bulgaria; Serbia; Croatia; Greece; Italy; Portugal; Malta; Colombia; Argentina; Australia; South Africa; and Lesotho.

We seek Safe Harbor.