Subject: CSE Confirms Position on U.S. Cannabis Listings
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<html><head> <title>CSE Confirms Position on U.S. Cannabis Listings</title></head><body><div style="font-family: Ar
--->ial, Helvetica, Sans-Serif; font-size: 10pt;"><table><tr><td width=270><img src="http://www.newsfilecorp.com/images/ne
--->wsfile-wire-logo.jpg" width="248" height="54" alt="Newsfile Corp." /></td><td><h2 style="font-family: Arial, Helvetica
--->, Sans-Serif;color:#0C2081;">CSE Confirms Position on U.S. Cannabis Listings</h2></td></tr></table><hr style="color: #
--->0C2081; background-color: #0C2081; height: 5px; margin: 20px 0px;" /><h3 style="font-family: Arial, Helvetica, Sans-S
--->erif;color:#0C2081;margin-top:5px;"><i></i></h3><p>Toronto, Ontario--(Newsfile Corp. - August 4, 2017) - CNSX Markets
--->Inc. ("Canadian Securities Exchange", "CSE" or the "Exchange") has today released guidance pertaining to listings of c
--->annabis companies with assets or operations in the United States. There is significant uncertainty in Canada surroundi
--->ng these listings, and the CSE wishes to confirm its position.</p><p><b>Risk Disclosure</b></p><ul><li>Currently, ther
--->e are conflicting U.S. federal and state laws concerning the legality of medical and recreational cannabis. The CSE ma
--->intains that companies with exposure to the U.S. cannabis industry need to provide a complete risk disclosure for inve
--->stors. This should include a comprehensive discussion of the current legal framework. All CSE-listed companies are req
--->uired to comply.</li></ul><p><b>Public Interest</b><br /><br /></p><ul><li>The Exchange has an obligation and a commit
--->ment to consider the public interest during the listing process. Accordingly, the Exchange will continue to accept app
--->lications from companies that meet listing requirements and provide appropriate disclosure.</li></ul><ul></ul><p> "The
---> CSE is "<i>T</i><i>he Exchange F</i><i>or Entrepreneurs</i>", and we are pleased to be receiving growing interest fro
--->m entrepreneurs in the U.S. cannabis space, where a rapidly evolving legal framework has created significant investmen
--->t opportunities," said Richard Carleton, CEO. "Provided that these companies offer appropriate risk disclosure and dem
--->onstrate that they are operating in accordance with applicable laws, we believe that they are valuable additions to ou
--->r well-regulated exchange."</p><p>For more information, including a list of Frequently Asked Questions pertaining to l
--->istings of cannabis companies with exposure to the United States, please view the CSE's guidance document here: <a hre
--->f="http://thecse.com/en/about/publications/notices/notice-2017-014-industry-guidance-issuers-with-assets-or-operations
--->-in">http://thecse.com/en/about/publications/notices/notice-2017-014-industry-guidance-issuers-with-assets-or-operatio
--->ns-in</a></p><p><b>About the Canadian Securities Exchange:</b></p><p>The Canadian Securities Exchange is home to more
--->than 300 uniquely listed issues covering a broad range of industry sectors. The exchange provides trade execution, sma
--->rt routing, risk management, compliance and market information services for Canadian listed instruments.</p><p>Recogni
--->zed as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capital formati
--->on process for public companies through a streamlined approach to company regulation that emphasizes disclosure and th
--->e provision of efficient secondary market trading services for investors.</p><p>For more information, please visit <u>
---><a href="http://www.thecse.com">www.thecse.com</a></u> and our blog at <a href="http://blog.thecse.com">http://blog.th
--->ecse.com</a>. </p><p>Contact:<br />Richard Carleton, CEO<br />416-367-7360<u><br /></u><a href="mailto:richard.carleto
--->n@thecse.com">richard.carleton@thecse.com</a></p></div></body></html><p>If you no longer want to receive messages from
---> us <a href='http://orders.newsfilecorp.com/unsubscribe.aspx?id=news@stockwatch.com&token=ab3b8818eda7506765bd0f2c6dee
--->ce87&cid=5318'>click here to unsubscribe</a>.</p>
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<meta http-equiv="Content-Type" content="text/html; charset=utf-8"><title>CSE Confirms Position on U.S. Cannabis Listi
--->ngs</title></head><body><div style="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt;"><table><tr><td width=
--->"270"><img src="http://www.newsfilecorp.com/images/newsfile-wire-logo.jpg" width="248" height="54" alt="Newsfile Corp.
--->"></td><td><h2 style="font-family: Arial, Helvetica, Sans-Serif;color:#0C2081;">CSE Confirms Position on U.S. Cannabis
---> Listings</h2></td></tr></table><hr style="color: #0C2081; background-color: #0C2081; height: 5px; margin: 20px 0px;"
--->><h3 style="font-family: Arial, Helvetica, Sans-Serif;color:#0C2081;margin-top:5px;"><i></i></h3><p>Toronto, Ontario--
--->(Newsfile Corp. - August 4, 2017) - CNSX Markets Inc. ("Canadian Securities Exchange", "CSE" or th
--->e "Exchange") has today released guidance pertaining to listings of cannabis companies with assets or operat
--->ions in the United States. There is significant uncertainty in Canada surrounding these listings, and the CSE wishes t
--->o confirm its position.</p><p><b>Risk Disclosure</b></p><ul><li>Currently, there are conflicting U.S. federal and stat
--->e laws concerning the legality of medical and recreational cannabis. The CSE maintains that companies with exposure to
---> the U.S. cannabis industry need to provide a complete risk disclosure for investors. This should include a comprehens
--->ive discussion of the current legal framework. All CSE-listed companies are required to comply.</li></ul><p><b>Public
--->Interest</b><br><br></p><ul><li>The Exchange has an obligation and a commitment to consider the public interest during
---> the listing process. Accordingly, the Exchange will continue to accept applications from companies that meet listing
--->requirements and provide appropriate disclosure.</li></ul><ul></ul><p> "The CSE is "<i>T</i><i>he Exchange F
---></i><i>or Entrepreneurs</i>", and we are pleased to be receiving growing interest from entrepreneurs in the U.S.
--->cannabis space, where a rapidly evolving legal framework has created significant investment opportunities," said
--->Richard Carleton, CEO. "Provided that these companies offer appropriate risk disclosure and demonstrate that they
---> are operating in accordance with applicable laws, we believe that they are valuable additions to our well-regulated e
--->xchange."</p><p>For more information, including a list of Frequently Asked Questions pertaining to listings of ca
--->nnabis companies with exposure to the United States, please view the CSE's guidance document here: <a href="https://ma
--->ndrillapp.com/track/click/30568383/thecse.com?p=eyJzIjoiLUdpbmNtWnlrdDVUd19IX2VMSlY3T0VNRHQ0IiwidiI6MSwicCI6IntcInVcIj
--->ozMDU2ODM4MyxcInZcIjoxLFwidXJsXCI6XCJodHRwOlxcXC9cXFwvdGhlY3NlLmNvbVxcXC9lblxcXC9hYm91dFxcXC9wdWJsaWNhdGlvbnNcXFwvbm90
--->aWNlc1xcXC9ub3RpY2UtMjAxNy0wMTQtaW5kdXN0cnktZ3VpZGFuY2UtaXNzdWVycy13aXRoLWFzc2V0cy1vci1vcGVyYXRpb25zLWluXCIsXCJpZFwiOl
--->wiZDBjNzEyMGNlZTRlNGM2ODkxZGQ5OWUyMTI1Yzg4NDhcIixcInVybF9pZHNcIjpbXCIyNmIxMTkwOTdjMDIyMzhlYzE5ZTU2NDQ1OWYyZGZlNjExMGI5
--->OTVhXCJdfSJ9">http://thecse.com/en/about/publications/notices/notice-2017-014-industry-guidance-issuers-with-assets-or
--->-operations-in</a></p><p><b>About the Canadian Securities Exchange:</b></p><p>The Canadian Securities Exchange is home
---> to more than 300 uniquely listed issues covering a broad range of industry sectors. The exchange provides trade execu
--->tion, smart routing, risk management, compliance and market information services for Canadian listed instruments.</p><
--->p>Recognized as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capita
--->l formation process for public companies through a streamlined approach to company regulation that emphasizes disclosu
--->re and the provision of efficient secondary market trading services for investors.</p><p>For more information, please
--->visit <u><a href="https://mandrillapp.com/track/click/30568383/www.thecse.com?p=eyJzIjoiaVU0Rlh5VkNjcTRWcy1OZmJ5emdTMn
--->ZSOGxvIiwidiI6MSwicCI6IntcInVcIjozMDU2ODM4MyxcInZcIjoxLFwidXJsXCI6XCJodHRwOlxcXC9cXFwvd3d3LnRoZWNzZS5jb21cIixcImlkXCI6
--->XCJkMGM3MTIwY2VlNGU0YzY4OTFkZDk5ZTIxMjVjODg0OFwiLFwidXJsX2lkc1wiOltcImJhYzU1MmJmYjUxYjA2YWVhMGI5YjY5M2QyNWJhYWE0NDY3OD
--->c5OGFcIl19In0">www.thecse.com</a></u> and our blog at <a href="https://mandrillapp.com/track/click/30568383/blog.thecs
--->e.com?p=eyJzIjoiTHA1Z1Nabm43dVlkRjcwaGZZMXl0aHg5VVR3IiwidiI6MSwicCI6IntcInVcIjozMDU2ODM4MyxcInZcIjoxLFwidXJsXCI6XCJodH
--->RwOlxcXC9cXFwvYmxvZy50aGVjc2UuY29tXCIsXCJpZFwiOlwiZDBjNzEyMGNlZTRlNGM2ODkxZGQ5OWUyMTI1Yzg4NDhcIixcInVybF9pZHNcIjpbXCIz
--->YTM1NWFjNjVmMDA0NDU1NzM2OWE3N2Y0OGE3ZThjNDFlODliMDM5XCJdfSJ9">http://blog.thecse.com</a>. </p><p>Contact:<br>Richard C
--->arleton, CEO<br>416-367-7360<u><br></u><a href="mailto:richard.carleton@thecse.com">richard.carleton@thecse.com</a></p
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