Mr. Ryan Hoggan reports

THOUGHTFUL BRANDS FINALIZES DEAL WITH UNIFIED FOR ASSET ACQUISITION

Thoughtful Brands Inc.'s wholly owned subsidiary, Ecommerce Tech LLC, has acquired the rights to an e-commerce software platform from Unified Funding LLC's wholly owned subsidiary, Offer Space LLC. The acquisition of the asset provides the company with the opportunity to capture previously unrealized value from the products it launches in the on-line natural health market.

The software has facilitated over $350-million in consumer transactions, including $93.8-million in 2019. The asset will enhance the management of the company's already profitable on-line brands, and will allow the company to launch new products and enter into emerging natural health markets worldwide, more efficiently. In addition to providing immediate value to the existing brands owned and operated by Thoughtful Brands, the newly acquired e-commerce platform is expected to reduce current operating costs.

"The company was very successful in its negotiations with Unified Funding, and ultimately acquired the asset for $1-million (U.S.). The company's success in negotiating such favourable terms not only results in less dilution for existing Thoughtful Brands shareholders, it also adds immediate value to the company," stated Ryan Hoggan, chief executive officer of Thoughtful Brands. "This acquisition is a critical milestone in executing our strategy to further our reach in the natural health products sector. Now that we own the software platform, integral technology and top brands, we will further develop and launch our own platform that will be even more powerful and fit in with our overall strategy."

Thoughtful Brands' existing portfolio of direct-to-consumer hemp-cannabidiol brands includes Nature's Exclusive, whose roster of topicals and oils available in North America generated more than $28-million in sales in 2019 and Sativida. The company also recently acquired two leading e-commerce brands selling natural health products in the United States, Golden Path and Wild Mariposa.

Transaction details

The company has acquired the software from Unified Funding's wholly owned subsidiary, Offer Space, in consideration for $1-million (U.S.), which was satisfied through the issuance of 6,290,170 common shares of the company issued at a deemed price of 20.94 cents. The company also paid an administrative fee of 62,902 common shares of the company to a consultant who assisted with the transactions.

The consideration shares and administrative fee shares are subject to a statutory hold period until Dec. 22, 2020, in accordance with applicable securities laws.

About Thoughtful Brands Inc.

Thoughtful Brands is an e-commerce technology company that researches, develops, markets and distributes natural health products through various brands in North America and Europe. Through continuous strategic acquisitions, the company has a strong footprint in the CBD market, as well as the burgeoning psychedelic medicine sector. Thoughtful Brands owns and operates a 110,000-square-foot pharmaceutical manufacturing facility in Radebeul, Germany, where its highly skilled team conducts clinical studies, utilizing naturally occurring psilocybin and other compounds found in psychedelics for the treatment of opiate addiction, while planning for future opportunities to create proprietary psilocybin products.

We seek Safe Harbor.