Mr. Marc Lustig reports

CANNAROYALTY INVESTEE, ANANDIA LABS, TO BE ACQUIRED BY AURORA CANNABIS FOR APPROXIMATELY $115 MILLION

CannaRoyalty Corp. investee company Anandia Laboratories Inc. has signed a binding term sheet to be acquired by Aurora Cannabis Inc. for approximately $115-million. CannaRoyalty owns 16.5 per cent of Anandia and its equity stake is valued at approximately $19-million based on the acquisition valuation, representing an almost 400-per-cent return on investment.

Anandia is Canada's leading cannabis analytics, testing and genetics company. Under CannaRoyalty's previously announced investment relationship, CannaRoyalty invested approximately $4-million in Anandia beginning in February, 2017, at a postmoney valuation of $20-million. This included $1.5-million paid in cash, over $2-million in stock, and $500,000 in equipment and services.

"With a historical corporate focus on being an active investor and operator in the legal cannabis industry in North America, we have deployed substantial capital across several jurisdictions. We are currently monetizing our non-core investment portfolio to drive value for shareholders, with a primary focus on California and Canada," said Marc Lustig, chief executive officer of CannaRoyalty. "This agreement represents a solid return on investment for CannaRoyalty shareholders and is a validation of the quality of Anandia's business and the significant future growth potential available, particularly when married to Aurora's global footprint. This transaction will provide CannaRoyalty with additional capital to allocate against its core strategy of building a global cannabis consumer product platform emanating from California. The company will also benefit from a strong relationship with both Anandia and Aurora, which we look forward to continuing to build on."

Pursuant to the binding term sheet signed by Anandia and Aurora, Aurora will purchase 100 per cent of the issued and outstanding shares from Anandia's shareholders in exchange for common shares of Aurora based on the 20-day volume-weighted average price (to the effective date) equivalent to approximately $115-million. In addition, each Aurora share will be accompanied with a warrant exercisable for one-half of an Aurora common share at an exercise price equal to the issue price plus 10 per cent with a term of five years. Closing is subject to conditions, including shareholder and regulatory approvals.

Anandia and Aurora intend to complete the acquisition by way of a plan of arrangement under the Business Corporations Act (British Columbia) subject to finalization of an arrangement agreement on acceptable terms to both parties. The closing of the acquisition is subject to customary closing conditions, including execution of definitive documentation, completion of satisfactory due diligence, and receipt of applicable shareholder, third party and regulatory approvals, including that of the Supreme Court of British Columbia and the satisfaction of other conditions customary in transactions of this nature. Anandia and Aurora anticipate closing the acquisition in the coming weeks.

About Anandia Laboratories Inc.

Anandia has been established to provide the science, technical innovations and services that underpin the global cannabis industry. Anandia provides industry-leading analytical testing services including potency, pesticides, microbes and terpenes to licensed producers and patients. In addition, Anandia uses modern plant breeding approaches to develop next-generation cannabis varieties.

Anandia holds a dealer's licence by Health Canada pursuant to the provisions of the Controlled Drugs and Substances Act and the Narcotic Control Regulations.

About CannaRoyalty Corp.

CannaRoyalty is an active operator and investor in the global cannabis industry, with a strong focus on California, the world's largest cannabis market. The company's core mission is to become the leading global consumer product goods company for discerning cannabis consumers. It is currently focused on building a diversified portfolio of manufacturing, distribution, intellectual property and infrastructure assets to achieve this goal. The company's leadership team combines a passion and hands-on understanding of the cannabis industry, with seasoned financial and legal expertise.

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