Mr. James Burns reports

ALCANNA PROVIDES FIRST RESULTS FROM NOVA CANNABIS

The historic launch of a new industry in Canada on Oct. 17, 2018, has resulted in an unprecedented number of requests from shareholders, investors, analysts and the media for information as to the results of operations for Alcanna Inc.'s retail cannabis business and initial trends. In normal course, Alcanna does not disclose financial or operational results outside traditional quarterly reporting cycles. However, in these unique circumstances, an exception will be made to provide disclosure to all market participants.

In the first five days of legal cannabis sales, from legalization day, Wednesday, Oct. 17, until close of business Sunday, Oct. 21, Alcanna's five NOVA cannabis brand stores realized combined revenues of approximately $1.3-million. Given that all five stores experienced lineups from opening at 10 a.m. until closing at 10 p.m. each of the five days, and thus were operating at essentially full capacity, results per store were relatively consistent at all locations.

"Basket size" (the average dollar amount of each transaction) was two to three times that of an average liquor depot. Over the five days, Alcanna processed approximately 17,000 separate transactions and sold approximately 68,000 individual SKUs.

Sales were heavily weighted toward dried cannabis flower, with strains high in tetrahydrocannabinol (THC) being the most popular.

"These figures are truly impressive," said James Burns, chief executive officer of Alcanna. "But we certainly need to put them in perspective since they are reflective of both the novelty of legalization finally happening and the very limited number of retail outlets that were able to get open for Oct. 17. Alcanna's experience in controlled-substance retail and financial strength enabled us to have sufficient inventory on hand to last right through opening weekend. It is a positive start to the long road of getting the black market out of cannabis."

About Alcanna Inc.

Alcanna (formerly Liquor Stores North America) is one of the largest private-sector retailers of alcohol in North America and by far the largest in Canada -- owning and operating 228 locations in Alberta, British Columbia and Alaska. With revenues in excess of $600-million per year, Alcanna safely and responsibly processes over 20 million individual retail transactions of beverage alcohol annually.