An anonymous director reports

CRAFT 1861 GLOBAL HOLDINGS INC. ANNOUNCES LETTER OF INTENT TO DIVEST PLANT-TOUCHING OPERATIONS IN NEW MEXICO

Craft 1861 Global Holdings Inc.'s wholly owned subsidiary, Craft 1861 Global Inc., and RKA LLC have entered into a binding letter of intent which sets out the principal terms upon which it is proposed that Craft Global will divest and transfer its plant-touching operations in New Mexico to RKA. RKA is at arm's length to Craft.

The company currently exercises capital and management control of Healthy Education Society (HES), a State of New Mexico incorporated not-for-profit that holds the State of New Mexico Cannabis Control & Regulatory License Division vertically integrated licensure, pursuant to an exclusive management agreement with HES.

Pursuant to the transaction:

• RKA will assume capital and management control of HES in exchange for the assumption of approximately $2.7-million of liabilities.
• The company will enter into a licensing agreement with RKA relating to certain trademarks used in HES's operations on terms to be negotiated.
• The company will be granted a right of first refusal to reacquire capital and management control of HES.
• Upon the occurrence of an unconditional triggering event, the company shall have the right, but not the obligation, to reacquire capital and management control of HES from RKA at a 25-per-cent premium to the transaction price.

All currency references used in this news release are in U.S. currency unless otherwise indicated.

Completion of the transaction is currently expected to occur as soon as feasibly possible and will be further announced as the transaction advances.

The Transaction remains subject to completion of satisfactory negotiation of definitive agreements, and the satisfaction or waiver of certain customary conditions, including, among other things, receipt of all required third party consents and regulatory approvals.

The board of directors of each of RKA and Craft Global have approved the letter of intent and determined that the transaction is in the best interests of their respective shareholders and companies.

We seek Safe Harbor.