Mr. Steve Gormley reports

INTERNATIONAL CANNABRANDS ENTERS INTO LOI TO INVEST IN RIOTUS LLC

International Cannabrands Inc. has signed a non-binding letter of intent to invest $1-million to acquire a minimum of 51 per cent of Riotus SODO LLC, one of the operating units of Riotus LLC. Riotus provides facility and operations finance and consulting to the cannabis industry. Riotus partners with some of the fastest-growing and leading licensed operators in the cultivation, extraction, branding, manufacturing and distribution markets. Riotus targets core geographies, including California, Nevada, Washington State and Michigan.

The investment continues the company's strategy of investing in accretive cannabis companies within distribution, branding and attractive pinch points in the cannabis value chain. If completed, the Riotus deal is expected to generate earnings and cash flow beginning in the second quarter of 2019, which would materially increase the company's earnings and cash flow. Riotus also has strong brand and distribution relationships, which the company intends to leverage going forward.

The terms of the investment by the company would be approximately $1-million cash. The investment is expected to be financed 60 per cent by Sept. 7, 2018, 20 per cent by Oct. 1, 2018, and the remainder before Nov. 15, 2018. In addition, the company expects to sign a distribution agreement for its brands, specifically starting with JuJu Royal, in Washington State through Riotus's strategic relationships.

Steve Gormley, chief executive officer of International Cannabrands, commented: "We are extremely pleased to have been able to come to this investment with Riotus. The combination of expected strong profits and cash flow, with the added bonus of an extension of our brand distribution footprint, should be a significant contributor to our earnings going forward."

About International Cannabrands Inc.

International Cannabrands acquired the exclusive rights to Julian Marley's JuJu Royal brand. It currently generates revenue from licensing brands to growers, edible manufacturers, oil extractors, and producers of ancillary products and apparel in the United States, where cannabis has been legalized at the state level, as well as products containing cannabidiol (CBD) in the U.S. and internationally. International Cannabrands intends on acquiring microbrands with highly profitable operations in the cannabis space. The company believes as the market becomes saturated with products varying in potency and quality, that the branded products will rise to the top, and the company intends to exploit all opportunities available to realize the full value of the Julian Marley brand and other brands.

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