Operating in world’s two largest cannabis markets – California and Canada

Cannabis concentrate extraction service agreement inked with Cannabis Strategic Venture subsidiary Pure Applied Sciences, Inc. to provide white label services of high quality, ultra-purified cannabis extracts

Construction underway in California and Canada of large scale, purpose-built current cGMP designed greenhouses for cannabis cultivation and production

Supply agreement with Canopy Growth Corporation to provide up to 90,000 kg of cannabis over two years beginning in early 2019

Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF), a vertically integrated medical cannabis company headquartered in Vancouver, Canada, is committed to delivering safe, consistent, high-quality products and services through its wholly owned subsidiaries – Sunniva Medical Inc., CP Logistics LLC, Natural Health Service Ltd. and Full-Scale Distributors LLC.

In an executive summary of Sunniva’s market potential, Canaccord Genuity states, “Sunniva could become one of the larger compliant producers in California heading into 2019 where more than 85 percent of product is still not in compliance with current regulations.” The company’s strategy of placing a high degree of importance on designing its facilities with innovative technologies that allow for automation, low-cost cultivation and the ability to maximize control/monitoring of production inputs and environmental factors is a top value for investors looking at Sunniva, the report states (http://nnw.fm/u6iOF).

Sunniva currently has two separate growing facilities under construction. The first facility is at its campus in Cathedral City, California, and the second is a 126-acre site at Okanagan Falls, British Columbia, Canada. Sunniva broke ground in early May 2018 on the Okanagan Falls Campus, while the Cathedral City Campus is further along in the construction process. Through subsidiary CP Logistics, the company is close to completing Phase 1 of a cGMP-compliant greenhouse facility in Cathedral City that will have an estimated annual output of 60,000 kg of dry cannabis at capacity. Sunniva expects operations at its California facility to begin in Q4 2018 (http://nnw.fm/vV5Cz).

A previously reported take-or-pay supply agreement signed with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) (http://nnw.fm/y4BbJ) ensures that Canopy will purchase approximately 45 percent of Sunniva’s annual production capacity, representing 45,000 kg of dried cannabis annually, starting in Q1 2019 or shortly thereafter. Canopy will also distribute Sunniva’s branded products. Canaccord Equity issued a positive statement on this agreement, noting, “We believe this take-or-pay agreement provides medium-term revenue certainty while partnering the company with one of the leading producers in Canada and allocating a sizable portion of the company’s planned capacity (~45%) to a dedicated supply channel right off the bat.”

Sunniva also recently signed a cannabis concentrate extraction services agreement between CP Logistics, LLC (“CPL”) and Pure Applied Sciences, Inc. (“PAS”), a wholly owned subsidiary of Cannabis Strategic Ventures, Inc. (OTC: NUGS). Under the agreement, CPL will perform white label services producing high quality, ultra-purified cannabis extracts out of its Sun-Oil Facility in Cathedral City, California, for PAS under the Pure Organix™ brand name, which was recently acquired by Cannabis Strategic (http://nnw.fm/7hPWl).

In addition to its planned cultivation and production in California and Canada, Sunniva operates Canada’s largest network of cannabis clinics (providing guidance and education to medical patients) and is a private-label provider of vaporizers throughout several major U.S. states. Sunniva’s seed-to-sale structure supports the company’s strategy of sourcing potential acquisition targets to increase its level of vertical integration.

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

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