Mr. Anthony Dutton reports

CANNEX COMMENDS U.S. HOUSE APPROPRIATIONS COMMITTEE ON VOTE TO PROTECT STATE-LEGAL MEDICAL MARIJUANA FROM PROSECUTION. U.S. HOUSE OF REPRESENTATIVE APPROPRIATIONS COMMITTEE PASSED THE JOYCE AMENDMENT, WHICH PROHIBITS THE DEPARTMENT OF JUSTICE FROM PROSECUTING PARTICIPANTS WHO COMPLY WITH STATE LAWS PERMITTING MEDICAL MARIJUANA PROGRAMS.

Cannex Capital Holdings Inc. is pleased with the U.S. House of Representatives appropriations committee for its vote to pass the Joyce amendment, which adds a provision to prohibit the U.S. Department of Justice (DOJ) from using government funding to prevent states from implementing medical marijuana laws through the end of fiscal 2019.

The Rohrabacher-Farr amendment has protected states with legal medical marijuana programs from interference from the DOJ and will continue to do so until the end of fiscal 2018. Blocked floor votes on cannabis amendments have prevented votes on extensions of the prohibition on government funding enforcement against medical marijuana since 2015. Cannex commends David Joyce for offering the amendment and thanks the members of the appropriations committee who supported the amendment.

According to NORML, a marijuana reform advocate organization, 46 U.S. states and over two million patients rely on state medical marijuana laws to obtain cannabis. According to a recent nationwide Quinnipiac University poll, 93 per cent of Americans support the legalization of medical marijuana. The Joyce amendment will extend protection for patients and providers from the threat of federal prosecution.

"Representative Joyce and the appropriations committee took a brave step to protect the rights of states and sick patients who benefit from having access to medical cannabis. We thank these U.S. representatives for representing the will of the people and preserving their right to access medical cannabis," said Anthony Dutton, chief executive officer of Cannex. "Protection from federal prosecution is critical to ensure that patients receive safe, high-quality medical cannabis."

About Cannex Capital Holdings Inc.

Cannex, through its wholly owned subsidiaries, provides a wide range of services including real estate, management, financial, branding and intellectual property to licensed cannabis business operators domestically and internationally. Cannex is focused on premium indoor cultivation, extraction, manufacturing and branding of edible and derivative products as well as retail operations. Cannex is undertaking expansion initiatives to support the acquisition and development of additional assets in legal medical and recreational cannabis markets. Cannex currently owns BrightLeaf Development LLC which holds real estate assets, property leases, brands and intellectual property, and material supply agreements with Superior Gardens LLC (doing business as Northwest Cannabis Solutions), Washington State and the Pacific Northwest's largest full-line cannabis producer/processor, as well as 7Point Holdings LLC, another Washington State-licensed cannabis producer/processor.

We seek Safe Harbor.