POTLUCK POTIONS & EDIBLES INC.

SHORT-RUN MULTI-USE BEVERAGE MANUFACTURING FACILITY

This Canadian facility is set up to be a one-stop shop for beverages in the cannabis industry.

Through an exclusive partnership agreement with a leading Toronto-based brewery, Agraflora holds claim to the exclusive formulation, manufacturing and distribution rights for all cannabinoid-infused beverages developed at said brewhouse. Composed of a consortium of experienced brewery partners, the brewhouse has completed multiple production runs for prominent European beverage brands.

This exclusive partnership provides Agraflora with pre-eminent exposure to a collective of domestic and global brewery partners, as well as further crystallizes a leading production platform for the company’s cannabinoid-infused carbonated beverage product offering.

With its exclusive brewing partner, the company plans to commence product formulation and batch testing during third quarter of fiscal 2019, with forecasted commercial production slated to begin in fourth quarter 2019.

Equipped with custom production equipment and a captive research, development and testing facility, as well as a state-of-the-art brewing infrastructure, the brewhouse is armed with annual output capacity capabilities of 120,000 hectolitres. By comparison, Canadian brewer Steam Whistle Brewing produces approximately 95,000 hl on an annualized basis.

The brewhouse is nearing completion of major facility retrofit initiatives, which are projected to increase its output capacity to over 200,000 hl per annum. Upon completion of the retrofit, aggregate capital expenditures deployed on the brewhouse buildout will exceed $20-million.

In addition, the brewhouse possesses the ability to package both steel kegs and plastic one-way kegs in a plethora of fittings, and is equipped with a 24-head rotary canning line, capable of packaging a variety of container dimensions at a rate of over 100 million containers per year. The brewhouse also boasts an adjoined tasting and viewing facility affording Agraflora the ability to showcase product launches, beer dinners, community events and gallery showings.

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