Mr. Bradley Moore reports

CANADA'S GLOBAL CANNABIS APPLICATIONS TO ACQUIRE STAKE IN ISRAELI MEDICAL CANNABIS GROWER

Global Cannabis Applications Corp. has offered and signed a term sheet to invest up to $1.75-million with Barak Yevul Ha'aretz (BYH), a privately held medical cannabis growing operation based in moshav Gilat, Israel.

BYH, 100 per cent owned by the Malka family, has a 99-year lease on approximately 60 dunams (15 acres) and has a licence to grow from the Israeli Medical Cannabis Unit. BYH has already made investments of over $1-million in infrastructure and milestones required by the regulator during the certification process. The first stage will be a net 12 dunams (2.7 acres) planning on 5.5 million grams for the first year and 6.6 million grams for the second year of commercial grow. The construction period, including the mandatory pilot run, is eight months.

To be outlined in the definitive agreement, Canadian-based GCAC shall assume an $8.75-million valuation of the 12 dunams of GMP (good manufacturing practices) grade medical cannabis. This relies on the company reaching the stage of growing the final crop for licensing and GMP equivalent within six months. If milestones are not achieved, the premoney valuation will be reduced to $5-million or the equivalent of 35 per cent of BYH. GCAC shall assist in raising from external investors the required finances for BYH's operation, in the sum of $8.6-million over the first stages of the company's operation, by way of convertible debenture at an agreed upon market-cap value.

As part of the agreement, GCAC shall have exclusive access, right to use and commercialize all BYH growing and seed-to-sale tracking data for use in its Citizen Green technology solution. GCAC will evaluate future technology partners and has the first right of refusal in the deployment of new technologies used in growing and distribution operations.

All agreements are subject to Israeli foreign investment regulatory approval.

"The BYH investment is the next step in our ongoing commitment to connecting to cannabis powerhouses, Canada and Israel," states GCAC's Brad Moore. "BYH's 5.5 million grams of cannabis in year one consumed by over 40,000 patients wearing the Inteligenta biometric watch will contribute 418 billion growing and consumer feedback data points into our award-winning AI and blockchain solution. That is a staggering amount of information for us to work as we build the world's most comprehensive Cannabis 3.0 database."

The parties agree to work together in good faith to develop business and financial milestones to be accomplished prior to and as part of the definitive agreement. Further, the parties agree that the initial set of milestones should be established no later than 60 days after the execution of this term sheet.

About Global Cannabis Applications Corp.

Global Cannabis is a global leader in designing, developing, marketing and acquiring innovative data technology for the medical cannabis industry. The Citizen Green platform is the world's first end-to-end -- from patient to regulator -- medical cannabis data solution.

We seek Safe Harbor.