Mr. Nick Dean reports

EMBLEM TO LAUNCH EMBLEM GERMANY IN JOINT VENTURE WITH ACNOS PHARMA

Emblem Corp.'s board of directors has approved the company's formation of a joint venture under the name Emblem Germany with German pharmaceutical wholesaler Acnos Pharma GmbH for the purpose of exporting Emblem-branded cannabis products from Canada and importing them into Germany. Subject to completion of definitive agreements with respect to the joint venture, the JV will be 60 per cent owned by Emblem and 40 per cent owned by Acnos.

Joint venture between Acnos and Emblem the first of its kind

With a population of approximately 82 million and federal health insurance coverage for medical cannabis, Germany's adoption of cannabis has created one of the largest legal medical cannabis markets in the world.

Subject to all applicable regulatory approvals and the entering into of definitive agreements setting out the terms of the JV, Emblem will supply the JV with cannabis oil for sale to German pharmacies, wholesalers and clinical labs for medical purposes. Teams from both companies are actively working to prepare and finalize definitive agreements setting out the terms of the JV, with the objective to commence export sales to Germany in 2019.

"Forming Emblem Germany with Acnos supports our market development efforts to establish world-class distribution channels in the regions where cannabis use is federally legal," said Nick Dean, president and chief executive officer of Emblem.

Upon completion, Emblem's new 30,000-square-foot Good Manufacturing Practices-certified extraction facility will provide increased oil production capacity and significantly increase its extract and derivative product output to meet the expected demands of the German market.

"We have been impressed with the approach and progress Emblem's medical division has made in establishing cannabis as a pharmaceutical product," said Dirk Simonis, chief executive officer of Acnos. "Emblem's medical product innovation strategy is aligned to ours. We believe that medical cannabis products in Germany should be prepared in metered dose-controlled formats that physicians will feel confidence prescribing. From our experience, the long view of the German medical market is focused on oil extracts versus combustible products."

John Stewart, president of Emblem's medical division, concurred: "Emblem was an early licensed producer to apply a pharmaceutical approach to the industry. We wanted to partner with a distributor with an equally strong background in the pharma industry. I am incredibly impressed with the knowledge and depth of understanding of the German pharmaceutical industry that Acnos brings."

Subsequent to completing a definitive agreement with Acnos, the export of products to Germany will be predicated upon Emblem satisfying applicable regulatory requirements for shipping cannabis products to Germany. This includes completion of Emblem's GMP-certified laboratory in Ontario and associated receipt of European Medical Agency GMP certification. Emblem will also require a Health Canada issued export permit and provisional import status from the German Bundesopiumstelle (Federal Narcotics Bureau) to import medical cannabis products into Germany. Emblem's GMP facility is currently on target for completion in the fourth quarter with first shipments to Germany expected to occur in 2019.

Mr. Dean added, "Today's milestone further validates Emblem's strategy for product innovation, leveraging the company's strong medical brand and creating world-class distribution networks through relationships with the best partners in the business."

About Emblem Corp.

Emblem is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR (Access to Cannabis for Medical Purposes Regulations). Led by a team of cannabis experts and former health care and pharma executives, the company has three distinct verticals -- cannabis production, patient education centres and pharmaceutical development.

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