Lineage Grow Company: Vision for Growth & Corporate Update

Lineage Grow Company Ltd. (the “Company” or “Lineage”) (CSE:BUDD) wishes to provide an update regarding the Company’s recent M&A initiatives and to layout the framework, for investors, of its vision for corporate growth.

The U.S cannabis market is ripe with opportunity for an aggressive roll-up strategy. The market remains fragmented with many fast-growing but undercapitalized companies seeking value-added financial partners.  Lineage, with its extensive M&A expertise and access to public markets, is capitalizing on this opportunity by assembling a multi-state portfolio of operating companies at accretive valuations with attractive fundamentals. The Company is focusing on opportunities with cohesive value drivers and high margin revenue streams to deliver branded craft cannabis products sold through best-in-class retail channels.

Lineage is executing on opportunities in multiple U.S. jurisdictions where the Company’s strategy is being deployed to drive growth and create shareholder value. To date, Lineage has deployed its M&A growth strategy to assemble the following portfolio of projects and acquisitions:

California: Lineage has entered into agreements in California to acquire a 43,500 sq. ft. craft cannabis cultivator, one of sixteen licensed dispensaries in San Jose, and secured an option to build-out a 55,000 sq. ft. indoor cultivation and extraction facility in Sacramento. Upon closing of these acquisitions and completion of build outs, Lineage will be able to drive sales of premium branded products including craft flower and high-margin concentrates through its wholly-owned dispensary while capturing margin along the entire value chain.

Oregon: Lineage has identified two dispensaries operating under the Terpene Station banner with a solid track record of serving the Oregon craft cannabis market. While the Company works towards closing the Terpene Station Acquisition, management is simultaneously evaluating cultivation and extraction opportunities with a view towards achieving full vertical integration in the State of Oregon.

Maryland: Lineage has entered into a binding letter of intent to acquire a 35% interest in Herbiculture Inc. (“Herbiculture”), a medical marijuana dispensary located in Burtonsville, Maryland offering a high-end retail experience. Herbiculture is one of the few licensed medical marijuana retailers operating in the state of Maryland and is one of only two license holders permitted to operate in Maryland’s 14th Senatorial District.

Pennsylvania: Lineage has made an investment in a grower/processor applicant with a view towards acquiring an additional interest should the permit be granted. In Pennsylvania, Lineage has partnered with a first-rate operator who has successfully secured a permit to operate 3 dispensaries in the state.

Washington: Lineage has entered into IP licensing, equipment leasing, and consulting agreements with Mt. Baker Greeneries, LLC – a Tier 2 producer/processor located in Bellingham, Washington. Under a joint-venture with Nutritional High International Inc. (“Nutritional High”), Lineage is developing an indoor cultivation facility to supply an in-house extraction operation and serve as a R & D testing ground for innovative cultivation techniques.
These projects are consistent with Lineage’s strategy to build vertically integrated operations in multiple jurisdictions. Management is now focused on completing these previously announced acquisitions while continuing to evaluate growth opportunities that are either highly complementary to projects currently being pursued or those which offer footprint expansion into new markets.

Completion of these acquisitions is subject to numerous conditions, including completion of due diligence, negotiation and execution of definitive agreements, and receipt of any necessary approvals.

About Lineage Grow Company Ltd.

Lineage Grow Company Ltd. is a reporting issuer that is listed on the Canadian Securities Exchange (“CSE”). Lineage is focused on assembling licensed operators with good growth potential and superior management, either through direct acquisition or through joint ventures, with an aim towards a dominant vertically-integrated cannabis business that leverages best-in-class cultivation, brands, distribution, and retail assets. Lineage is targeting legalized cannabis markets across multiple jurisdictions in the United States and Canada and is seeking to deploy best practices in cultivation, branding, distribution, and retail management to drive performance across the Company’s asset base. Lineage has entered into binding letters of intent to purchase two cannabis dispensaries in Oregon, one in San Jose, California. In addition, Lineage has entered into an agreement to acquire a 35% interest in a dispensary in Maryland and another agreement for a 20% interest in a grower/processor permit applicant in Pennsylvania.

For updates on the Company’s activities and highlights of the Company’s press releases, investor deck and other media coverage, please visit Lineage’s web site (under construction) at www.lineagegrow.com

For further information, please contact:

David Posner, Director
Lineage Grow Company Ltd.

1(647)985-6727

Email: dposner@lineagegrow.com

This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The statements relate to: (i) Lineage leveraging its M&A expertise and access to public capital to pursue an aggressive roll-up strategy; (ii) assembling a multi-state portfolio of operating companies; (iii) Lineage’s four strategic pillars; (iv) driving sustainable growth and create shareholder value; (v) developing a vertically integrated operation in Northern California; (vi) working towards closing its previously announced Terpene Station; (vii) reviewing cultivation and extraction assets with a view towards achieving full vertical integration in the State of Oregon; (viii) Lineage’s acquisition of a 35% interest in Herbiculture Inc.; (ix) investment in a grower/processor applicant in Pennsylvania; (x) Lineage’s strategy to build a vertically integrated operation spanning across multiple jurisdictions; and (xi) developing an indoor cultivation facility to supply an in-house extraction operation and serve as testing ground for innovative cultivation techniques. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such risks include operational risks; U.S. federal regulation risks; variation in state regulations; change of cannabis laws; security risks; risks related to operational permits and authorizations; risks on liability, enforcement complaints etc.; banking risks; risk that the Company’s limited operating history makes evaluating its business and prospects difficult; need for funds; risk that the Company may be exposed to infringement or misappropriation claims by third parties, which, if determined adversely to the Company, could subject the Company to significant liabilities and other costs; risk that the Company may need to incur significant expenses to enforce its proprietary rights, and if the Company is unable to protect such rights, its competitive position could be harmed; risks related to trade secrets; risk that Company is dependent upon its existing management, its key research and development personnel and its growing and extraction personnel, and its business may be severely disrupted if it loses their services; risk of potential for conflict of interest; risk related to inability to innovate and find efficiencies; competition risks; risk that a drop in the retail price of medical marijuana products may negatively impact the business; consumer acceptance of marijuana; potential future acquisitions and/or strategic alliances may fail to materialize and may have an adverse effect on the Company’s ability to manage its business; risk on management of growth; risk related to general economic trends; tax risk and currency fluctuation risks. For details of the risks faced by the Company, please see the Company’s listing statement dated February 26, 2018 available at www.sedar.com under the Company’s profile. There is no certainty that any of these events will occur. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by applicable securities laws.

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Source: globenewswire.com