TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) to Acquire Soldaze Cannabis Snacks; Video Highlights California Production Hub’s Value

• TransCanna Holdings has signed an LOI to acquire Soldaze cannabis-infused fruit snacks, one of its 15 planned premium cannabis brands
• TransCanna’s recently acquired 196,000-square-foot self-contained production and distribution facility in Modesto, California, was featured in a new video tour of the site
• The facility is being developed as a hub for statewide distribution to various company satellite facilities in premium markets
• The company has plans for developing a still-larger cultivation facility on the 5.5-acre Modesto site as it grows and obtains more funding

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) has signed a non-binding letter of intent, dated May 15, to acquire the branding asset package Soldaze from Santa Cruz, California-based Tres Ojos Naturals LLC. The move is part of TransCanna’s plan to put 15 premium cannabis brands on store shelves in the next 24 months, utilizing the company’s new 196,000-square-foot California facility as the hub for its operations. SolDaze produces cannabis-infused fruit snacks in California.

“Having reviewed over 100 branded products in California, we’ve been extremely selective in our acquisition vetting process,” TransCanna CEO Jim Pakulis stated in a news release about the LOI (http://nnw.fm/7T3kR). “Our three mandatory acquisition criteria include SKU velocity, upward trending revenues, and products that differentiate themselves in the marketplace. The snack line from SolDaze, and specifically the cannabis-infused mango products, meets all three requirements.”

The Modesto facility will serve as a production hub that enables TransCanna to cultivate and deliver the 15 brands to scale as the company grows over time. TransCanna recently produced an eight-minute video as a quick tour of the facility (http://nnw.fm/6Rrfl), which is part of a larger 5.5-acre property purchase that the company can develop with an additional, still-larger structure to grow its own biomass. As it is, the current facility has space for a significant-sized nursery, as well as grow, manufacturing, bottling, baking, extraction and transportation operations.

“The benefit here is that we have better temperature control, better humidity control. We don’t bring any outside air into any of the controlled environments inside the facility. So it really differentiates us from anybody else in the industry,” Pakulis said during the video tour of the existing structure. “And it was specifically designed for this facility by the sellers. And the sellers, for the last 25 years, have designed these systems for food-grade processing facilities throughout the United States… It is truly a vertically integrated facility.”

“It’s just a matter of time before the USDA and the federal (government) realize that this (cannabis) is a food consumable item and needs to be treated in that fashion,” developer Chad Swan, vice president and general manager of Cold Storage Manufacturing, said in a BTV video report on the company and the Modesto facility (http://nnw.fm/v32AP). “So we’re ahead of the curve on most of the people that are building their facilities – they’re not building it to food grade standards and when this (regulatory environment) changes, everything they’ve done they’re going to have to redo.”

Additionally, the terms of site purchase – about a 79 percent discount to market – allow TransCanna to plan for potential future expansion at unusually cost-friendly terms.

“Adjacent to the facility, we have five acres that – once we tranche up – we’ll be able to build up to a three-story facility with approximately 400,000 square feet of indoor grow,” Pakulis added. “The wonderful part about that is because we got such a steep discount on acquiring the building and the land next to it, and because the sellers of the building specialize in building large-box, HVAC food processing facilities throughout the United States, and they’re part of the TransCanna team now, they will be building the 400,000-square-foot (facility) basically at their cost… It means that we’re going to be able to grow superior cannabis at a steep discount.”

The company expects to provide an update in the near future on its candidate selection process for the facility’s senior management (http://nnw.fm/fepN3).

“We have so much growth ahead of us, it’s crazy,” Pakulis concluded.

For more information, visit the company’s website at www.TransCanna.com

NOTE TO INVESTORS: The latest news and updates relating to TCAN are available in the company’s newsroom at http://nnw.fm/TCAN

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