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Combined article will accept 3.5 actor aboveboard anxiety of accessible amplitude to aftermath cannabis for calm and all-embracing markets

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Vancouver, British Columbia – October 4, 2018 – Bevo Agro Inc. (TSXV: BVO) is admiring to advertise that it has alive an Adjustment Acceding anachronous October 4, 2018 with Sun Pharm Investments Ltd. (“Sun Pharm”) for a about-face alive of Bevo (the “Transaction”).

The Transaction

The Transaction involves three basic elements:

The Transaction was absolutely accustomed by the lath of admiral of Bevo. Shareholders captivation about 58% of Bevo’s accepted shares accept entered into voting agreements committing to vote their Bevo accepted shares in favour of the Transaction.

Zenabis

At the closing of the Transaction, Bevo’s shareholders will authority shares of one of the world’s better cannabis companies.

Sun Pharm is currently a privately-held cannabis aggregation which has one of the largest, federally accountant calm medical agronomics aisle in Canada, operating two accountant assembly accessories in British Columbia and New Brunswick, with a third accepted to be advancing online anon in Nova Scotia. These accessories beset 660,000 aboveboard anxiety of calm biologic cast cannabis assembly space, strategically positioned on Canada’s coasts, facilitating civic administering and admission to all-embracing markets. Sun Pharm has accustomed acquirement agreements for recreational cannabis from ceremony of the British Columbia Liquor Administering Branch, New Brunswick Liquor Corporation, Nova Scotia Liquor Corporation, and Yukon Liquor Corporation.

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Following the achievement of the Transaction, Bevo’s greenhouse accessories in Langley are advised to be broadcast and retrofitted to accommodate avant-garde advancement technologies and avant-garde lighting and blast systems. On achievement of the accepted amplification of these greenhouse facilities, Zenabis will accept 660,000 aboveboard anxiety of calm amplitude and 2.8 million¹ aboveboard anxiety of avant-garde greenhouse amplitude in three ambit – British Columbia, New Brunswick and Nova Scotia.

Committed Financings

In affiliation with the Transaction, Sun Pharm has anchored committed or adjourned costs of ~$57 million, in accession to $72 actor anchored back the company’s founding. The $57 actor costs consists of three components:

Proposed Administering Team

It is currently advancing that the administering of the consistent issuer will accommodate ceremony of Rick Brar (Chief Executive Officer), Leo Benne (Chief Growing Officer), John Hoekstra (Chief Banking Officer), Mike McGinty (Chief Administrative Officer) and Kevin Coft (Chief Accessories Officer). The afterward is a abrupt description of the administering aggregation of Zenabis.

Rick Brar – Chief Executive Officer

Mr. Rick Brar is an accomplished business baton in the cannabis, nutraceutical, beverage, chump packaged goods, agriculture, acreage development and architecture sectors. Mr. Brar has all-embracing ability in arising bazaar sectors, accepting incubated and developed several companies over his career. He is accomplished in sales and marketing, with accustomed success in accumulated sales growth, new bazaar penetration, new artefact development, and continued ambit planning. Mr. Brar is a authentic chief administrator with accomplished communication, administering skills, cardinal planning, new bazaar development and a acceptability for aggregation building, as able-bodied as the accomplishing of appropriate sales and business initiatives. Mr. Brar was ahead the Chief Executive Administrator of All-embracing Herbs Limited, area he led one of the better assemble companies in North America for nine years.

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Leo Benne – Chief Growing Officer

Mr. Leo Benne is currently Vice President and a Director of Bevo, and the General Administrator of Bevo Farms Ltd., the Company’s wholly endemic subsidiary. Mr. Benne acquired avant-garde ability of avant-garde agronomical methods at Rijks Middelbare Tuinbouwschool in Holland. With acquaintance in the appliance of computer technology to the assembly of healthy, high-yield plants, he has been a key amount in the development of Bevo Agro. Mr. Benne has overseen every date of the company’s operations, from burying to shipping, and has led Bevo through aberrant advance to become the arch advancement aggregation in North America. He has been with Bevo for over 25 years.

John Hoekstra – Chief Banking Officer

Mr. John Hoekstra is the Executive Vice President and Chief Banking Administrator of Bevo Agro Inc., area he oversees all finance, administering and accounting activities. He aing Bevo in 2004, anon afterwards the Aggregation went public. Above-mentioned to aing Bevo, Mr. Hoekstra formed as Accumulation Alternation Administrator at Air Liquide Canada, and at Unitor Ships Service as Branch Manager. He is a Chartered Able Accountant (CPA, CGA) and holds a Business Administering amount from Redeemer University.

Mike McGinty – Chief Administrative Officer

Mr. Mike McGinty has all-encompassing acquaintance in all-embracing allocation and planning. Previously, he was a post-graduate babysitter in administering and planning for chief government and aggressive agents from Canada and over 25 affiliated nations worldwide. Mr. McGinty was a chief administrator in the British Army and served broadly overseas, including in Iraq and Afghanistan, area he was amenable for added than 1,000 bodies with $2 billion in basic assets. Mike charcoal an alive affiliate of the Canadian Armed Forces. He additionally served as the Head of Risk and Security for UBC Okanagan.

Kevin Coft – Chief Accessories Officer

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Mr. Kevin Coft is an operational and accumulation alternation able with over 30 years of Canadian and all-embracing procurement, ability operations, and authoritative experience. His automatic ability covers a advanced ambit of functions including abyssal Health Canada’s authoritative licensing, aggregation development, ability construction, cardinal ysis, import/export operations, logistics, warehousing, chump accord management, benchmarking, and business systems ysis.

“Our primary ambition with this alliance is to aggrandize Zenabis’ accommodation to accumulation high-quality cannabis for accepted distribution. We will accomplish this by demography advantage of Bevo’s greenhouse growing ability to breed high-quality cannabis,” said Mr. Brar. “This is a different affiliation that gives Zenabis a cogent advantage amid Canadian producers as we abide to abound our business to accommodated Canadian and all-embracing demand.”

“This transaction represents a absolute advance befalling for Bevo Agro, as Zenabis intends to advance up to $100 actor to aggrandize our greenhouse ability to accommodate avant-garde cannabis assembly capacity, while advancement our absolute advancement and floral business,” said Mr. Benne. “This affiliation will accompany new jobs and bread-and-er opportunities to the communities in which we operate, while we abide to abutment the bounded and all-embracing aliment and floral markets.”

Agentis Basic acted as banking adviser to Bevo apropos the RTO and the Greenhouse Transaction (as authentic below). Fasken Martineau Dumoulin LLP acted as admonition on account of Bevo apropos the RTO and the Greenhouse Transaction (as authentic below).

Regulatory Matters

Completion of the Transaction is accountable to ysis and approval by the TSX Venture Barter (“TSXV”), approval by the Company’s shareholders to be accustomed at a actor affair accepted to be captivated backward this agenda year, and approval of the BC Supreme Court. Above-mentioned to the meeting, the Company’s shareholders will accept an advice annular accouterment abundant advice about the Transaction and Sun Pharm’s business. While the Transaction is an arm’s breadth transaction, it does aggregate a “reverse take-over” beneath the TSXV’s rules, with the aftereffect that trading in Bevo’s accepted shares has been apoplectic and will not resume until such time as all appropriate affidavit has been filed with the TSXV and permission to resume trading has been granted.

Completion of the transaction is accountable to a cardinal of conditions, including but not bound to, TSXV accepting and if applicable, aloof actor approval. Area applicable, the transaction cannot aing until the appropriate actor approval is obtained. There can be no affirmation that the transaction will be completed as proposed or at all.

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Investors are cautioned that, except as appear in the administering advice annular or filing account to be able in affiliation with the transaction, any advice appear or accustomed with account to the transaction may not be authentic or complete and should not be relied upon. Trading in the balance of Bevo should be advised awful speculative.

Acquisition of Added Greenhouse Operations and Land

Bevo is additionally admiring to advertise that it has entered into a acquirement acceding with an arm’s breadth third affair to admission 10.4 acreage of greenhouse operations on 50 acreage of acreage in Aldergrove, British Columbia (the “Greenhouse Acquisition”). Post-amalgamation, Zenabis intends to use this greenhouse acreage to ensure chain for absolute Bevo advancement customers. The Greenhouse Accretion is accountable to accepted closing altitude and is accepted to aing above-mentioned to December 31, 2018.

The TSX Venture Barter Inc. has in no way anesthetized aloft the claim of the proposed transaction and has neither accustomed nor banned the capacity of this account release.

This columnist absolution does not aggregate an action to advertise or a address of an action to advertise any of the balance in the United States. The balance accept not been and will not be registered beneath the United States Balance Act of 1933, as adapted (the “U.S. Balance Act”) or any accompaniment balance laws and may not be offered or awash aural the United States or to U.S. Persons unless registered beneath the U.S. Balance Act and applicative accompaniment balance laws or an absolution from such allotment is available.

NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This account absolution contains statements that may aggregate “forward-looking information” aural the acceptation of applicative Canadian balance legislation. Advanced advice may include, amid others, statements apropos the approaching plans, costs, objectives or achievement of Bevo, or the assumptions basal any of the foregoing. In this account release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and agnate words and the abrogating anatomy thereof are acclimated to yze advanced statements. Advanced statements should not be apprehend as guarantees of approaching achievement or results, and will not necessarily be authentic break of whether, or the times at or by which, such approaching achievement will be achieved. No affirmation can be accustomed that any contest advancing by the advanced advice will arise or occur, including the achievement of the About-face Take-Over, Spin-Out and the Greenhouse Acquisition. Advanced advice is based on advice accessible at the time and/or management’s good-faith acceptance with account to approaching contest and are accountable to accepted or alien risks, uncertainties, assumptions and added capricious factors, abounding of which are above Bevo’s control. These risks, uncertainties and assumptions include, but are not bound to, those declared Bevo’s Management’s Discussion & Assay for the budgetary year concluded June 30, 2018, a archetype of which is accessible on SEDAR at www.sedar.com, and could account absolute contest or after-effects to alter materially from those projected in any advanced statements. Bevo does not intend, nor does Bevo undertake any obligation, to amend or alter any advanced advice independent in this account absolution to reflect consecutive information, contest or affairs or otherwise, except if appropriate by applicative laws.

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About Bevo Agro

Bevo Agro is North America’s arch supplier of broadcast agronomical plants, operating about 53 acreage of avant-garde greenhouse accessories on 98 acreage of acreage in Langley, BC and 20 acreage of acreage in Pitt Meadows, BC. The Company’s basic articles accept been the advancement of vegetable plants such as tomatoes, peppers, cucumbers, and added plants such as bedding plants, flowers and grasses. The Aggregation markets its articles to accustomed greenhouse growers, nurseries and retail outlets throughout North America.

About Sun Pharm

Sun Pharm is currently a baton in agriculture, technology, biologic sales, chump packaged goods, all-embracing administering and cast marketing, with cannabis and cannabis-related acquirement orders from the ambit of New Brunswick, British Columbia, Nova Scotia, and Yukon Territory. Sun Pharm is currently a privately-held cannabis aggregation which has one of the largest, federally accountant calm medical agronomics aisle in Canada, operating two accountant assembly accessories in British Columbia and New Brunswick, with a third apprehend to be advancing online anon in Nova Scotia. These accessories beset 660,000 aboveboard anxiety of calm biologic cast cannabis assembly space, strategically positioned on Canada’s coasts, facilitating civic administering and admission to all-embracing markets. Sun Pharm is currently alive appear globally accustomed EU GMP certifications. Sun Pharm has one of the best accomplished administering teams in the industry, with ability in retail chump packaged goods, all-around biologic sales and manufacturing, affection assurance, and commercialized cultivation. The growing aggregation has added than two decades of acquaintance in amoebic agronomics and administering of herbs and nutraceutical articles throughout the Americas, North Africa, and the Middle East. Sun Pharm’s sales aggregation has added than two decades in artefact development, commercialization, and retail and biologic sales including all-embracing distribution.

About Cubic

CubicFarms® Systems Corp. is an Ag Tech and Vertical Agronomics technology aggregation that utilizes revolutionary, patented technology to breed high-quality produce. Founded in 2015, the company’s mission is to accommodate farmers about the apple with able growing systems able of bearing anticipated crop yields. Using its different bouncing growing system, CubicFarms® solves the two basic challenges aural the calm agronomics industry: aerial electricity and labour costs. Currently, CubicFarms® cultivates active lettuce, active basil and microgreens at its own ability in Pitt Meadows, British Columbia and is partnering with added farmers to authorize accessories about the world.

¹Square footage includes the accretion of added greenhouse operations and land

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