Mr. Derek Ivany reports

AGRAFLORA ORGANICS CLOSES $7.5 MILLION SECOND TRANCHE OF $40 MILLION EQUITY PARTICIPATION AND EARN-IN AGREEMENT WITH DELTA ORGANIC CANNABIS CORP.

Further to the news releases dated Sept. 25, 2018, Oct. 11, 2018, and Nov. 19, 2018, Agraflora Organics International Inc. (formerly PUF Ventures Inc.) has closed a $7.5-million second tranche of the $40-million equity participation and earn-in agreement with Delta Organic Cannabis Corp. (DOCC) and issued the second tranche of 16,718,265 common shares of the company at a deemed price of approximately 45 cents per share.

"Agraflora has received a total of $20-million from DOCC of the proposed $40-million financing, and we are moving aggressively to retrofit our 2.2-million-square-foot greenhouse for cannabis cultivation," said Derek Ivany, president and chief executive officer of the company. "I am very pleased with the progress this far and expect the first phase to be complete and cultivation initiated in the first half of 2019. The size of the Delta greenhouse complex is impressive and will generate significant amounts of cannabis when complete. I look forward to the days ahead as Agraflora grows to become a leading cannabis producer in Canada and around the world."

The shares are being issued pursuant to the equity participation and earn-in agreement dated Sept. 25, 2018, as amended on Oct. 11, 2018, and Nov. 19, 2018, with Delta Organic Cannabis, a privately held Toronto-based cannabis investment company backed by pre-eminent leaders in Canadian cannabis enterprise.

The shares are subject to a statutory four-month hold period.

About Agraflora Organics International Inc.

Agraflora Organics International is a growth-oriented and diversified company focused on the international cannabis industry. It has ownership in several cannabis companies, including AAA Heidelberg Inc. and Propagation Services Canada in Canada, and is actively pursuing other opportunities within the cannabis industry. Agraflora Organics has an option to purchase 100 per cent of AAA Heidelberg, a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

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