Origin House Signs Exclusive Distribution Agreement with Henry's Original and Provides Strategic Investment for Brand Acceleration

OTTAWA, March 5, 2019 /CNW/ - CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) ("Origin House" or the "Company"), a leading North American cannabis products and brands company, today announced that it has entered into a Brand Accelerator Program agreement (the "Agreement") with Mendocino-based cannabis producer, Heritage Holding of California, Inc. d/b/a Henry's Original ("Henry's" or "Henry's Original").

California cannabis brand Henry's Original, winner of the GreenState Cannabis Award in 2018 for 'Excellence in Products', markets hand-crafted flower and premium pre-rolls from the finest heirloom cannabis grown in Mendocino County.

Transaction Summary

• Upon the completion of this deal, Henry's Original-branded products will be distributed exclusively in California by Origin House's wholly-owned distribution subsidiary, RVR Distribution ("RVR"), terminating Henry's distribution arrangements with other third-party distributors across the state. Henry's Original-branded products are currently carried in approximately 200 dispensaries across California.
  
  
• Origin House has agreed to provide a convertible bridge loan of US$2.5 million to Henry's to fund growth expenses, including construction and operation of additional cultivation sites for the 2019 growing season, increasing the brand's production capacity and revenue potential.
  
  
• This Agreement follows a previously announced brand acceleration and community support initiative whereby Origin House invested US$2.5 million towards the purchase of premium cannabis flower from Mendocino County farms. The flower provides Henry's with substantial inventory to fuel immediate sales growth on RVR's distribution platform.
  
  
• Origin House has an established footprint in California and now Canada, with its recent acquisition of 180 Smoke. The Company has a right of first offer with regards to the production, sale, licensing and/or distribution of Henry's Original-branded products across North America.

"Henry's Original was one of the first brands we partnered with under our innovative and growing Brand Acceleration Program. Our original partnership with Henry's bolstered their ability to meet consumer demand for its heirloom Mendocino-grown cannabis, while giving us the opportunity to financially support local Mendocino farmers," commented Afzal Hasan, President and General Counsel of Origin House.

"With our expanded relationship, we are providing short-term growth capital to further develop Henry's cultivation capacity, and simultaneously introduce Henry's Original products statewide through RVR's distribution platform. This Agreement advances the Company's mission of becoming a preeminent global house of cannabis brand by expanding our growing portfolio of California brands, while accelerating the growth of entrepreneurs with authentic brands sought after by consumers," Mr. Hasan added.

Joshua Keats, President of Henry's Original said, "We are excited to strengthen our partnership with Origin House. The Origin House team's continued confidence and support allows Henry's to distribute our hand-crafted flower and premium pre-rolls from the finest heirloom cannabis to reach more consumers in California. We are confident that this Agreement will help us accelerate growth, increase market share and position the company for future expansion."

About Origin House

Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The Company's foundation is in California, the world's largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries. Origin House's brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House's shares trade on the Canadian Securities Exchange (CSE) under the symbol "OH" and on the OTCQX under the symbol "ORHOF". Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Origin House's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.

Forward-looking statements may include, without limitation, statements relating to the amount and timing of the investment by the Company, the impact of the Company's partnership with Henry's on the growth of the "Henry's Original" brand and the California cannabis industry generally, the Company's expansion of its footprint in California, the Company's timing and process for expansion in Canada and globally, the execution of the Company's strategy, new opportunities, future growth and other statements.

Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under US federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.

SOURCE Origin House

Marc Lustig, Chairman and CEO, [email protected], 1-844-556-5070, www.originhouse.com; Jonathan Ross, CFA, LodeRock Advisors Inc., [email protected], 416-283-0178