Mr. James Pakulis reports

TRANSCANNA ANNOUNCES $10.0M BROKERED PRIVATE PLACEMENT

Transcanna Holdings Inc. has appointed Haywood Securities Inc. to act as lead agent on behalf of a syndicate of agents to be formed to sell, by way of a private placement on a best efforts basis, up to two million units of the company at a price of $5 per unit for gross proceeds of up to $10-million, subject to receipt of all applicable regulatory approvals.

Each unit will comprise one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire an additional share at a price of $6 for a period of 36 months from the date of closing of the offering. The warrants will be subject to an acceleration clause that would require their exercise within 30 days of notice from the company in the event that the price of the shares closes at or above $10 for a period of 20 consecutive trading days. The company has agreed to use commercially reasonable efforts to seek to have the warrants listed on the Canadian Securities Exchange immediately following the expiry of applicable resale restrictions, subject to meeting the distribution requirements of the CSE for such listing.

The company intends to use the net proceeds of the offering for equipment and capital expenditures, additional acquisitions, and for working capital and general corporate purposes.

The company will, upon the closing of the offering: 1) pay the agents a commission equal to 7.0 per cent of the gross proceeds of the offering, payable in cash or in units at the discretion of the agents; and 2) issue to the agents compensation options equal to 7.0 per cent of the units sold, subject to compliance with all required regulatory approvals. The compensation options will entitle the agents to purchase units at an exercise price per compensation option that is equal to the issue price and have a term of 36 months from the closing date. The company will also pay to Haywood a corporate finance fee of $150,000 payable in cash.

The offering is expected to be completed on or before May 31, 2019, subject to the receipt of all necessary regulatory approvals. All securities issued pursuant to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

In other news, the company has entered into an engagement letter, dated for reference April 30, 2018, with MDM Worldwide for the provision of market awareness and investor relations services. The engagement has a six-month term at a rate of $12,500 (U.S.) per month and, upon completion, the issuance of 10,000 common shares. MDM Worldwide is digital communications agency that develops and manages on-line engagement strategies to connect companies with their stakeholders. MDM specializes in working with clients in the technology, health care and life sciences spaces.

About Transcanna Holdings Inc.

Transcanna Holdings is a Canadian-based company focused on providing integrated branding, transportation and distribution services, through its wholly owned California subsidiaries, to a range of industries including the cannabis marketplace.

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