Mr. Steve Giblin reports

TRANSCANNA VIA LYFTED FARMS WINS UNANIMOUS RECOMMENDATION FOR COUNTY APPROVAL OF DALY FACILITY USE PERMIT

On Dec. 19, 2019, Lyfted Farms Inc., a wholly owned subsidiary of Transcanna Holdings Inc., received a unanimous recommendation from the Stanislaus County Planning Commission to recommend to the Board of Supervisors the approval of the Daly project. The Daly project is a 196,000-square-foot cannabis cultivation, manufacturing and distribution facility in Modesto, Calif. The Stanislaus County Planning Commission is appointed by the Board of Supervisors of the county to assess projects for potential negative impacts and the relative benefits projects may carry into the community at large. The items of consideration before the commission in last night's hearing included: (i) a conditional use permit application for the commercial cannabis uses proposed at the facility; and (ii) a development agreement negotiated between Lyfted and the county that establishes the relative rights and obligations of the parties.

"This recommendation of approval is a significant milestone for the project, as the county commission has previously voted down several large-scale cannabis projects. We are extremely pleased with the unanimous decision and believe it speaks volumes as to the viability of the project and validates the diligent efforts of our Modesto team over the last six months. We're excited to proceed with our next steps, a public hearing before the County Board of Supervisors, and, subsequently, anticipating their approval, moving into the state licensing process. Following full local approval by the board, the state licensing process is very often seamless," commented Zach Drivon, the company's council in California.

"We are very pleased with the unanimous vote of approval by the County Planning Commission," commented Steve Giblin, president and chief executive officer of Transcanna. "Our team in Modesto has worked diligently to meet all the criteria required by the county. Our goal is to operate a successful business that will add jobs and contribute to the local community."

About Transcanna Holdings Inc.

Transcanna Holdings is a California-based, Canadian-listed company building cannabis-focused brands for the California lifestyle through its wholly owned California subsidiaries.

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