MEDFORD, OR, March 12, 2019 /CNW/ - Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) ("Grown Rogue" or the "Company"), a vertically-integrated, multi-state cannabis company, with licenses and operations in Oregon and California, is bringing its winning brand and business model which generated compound monthly sales growth of 14% during the 2018 calendar year in Oregon - one of the world's most competitive cannabis markets - into the newly legalized recreational cannabis market in Michigan. Grown Rogue anticipates gaining meaningful traction for its brand through its local partnership with licensed operators in the State of Michigan.

Oregon is among the most competitive cannabis markets in the United States based on total active cultivation and licenses per capita. According to an August 2018 report from Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA), "Oregon has more than a thousand licensed recreational marijuana growers, with roughly 900 more in the queue to receive licenses. There's one licensed cultivation operation for every 19 consumers." Despite this competition, Grown Rogue launched its first cannabis products in late 2017 into the Oregon market and gained sales traction and market share as a result of high-quality products, unique branding and effective marketing. By the end of 2018 Grown Rogue branded products were available in more than half of Oregon dispensaries.

A number of factors contributed to Grown Rogue's overall success in 2018:

Optimization of cultivation and distribution teams;

Major increase in outdoor harvest from 2017 to 2018 by over 50% based on training and efficiency programs implemented in early 2018;

Accolades in product quality in Oregon by setting outdoor potency record and winning the prestigious Growers Cup in 2 of 3 categories;

by setting outdoor potency record and winning the prestigious Growers Cup in 2 of 3 categories; Established partnership with international award winning chocolatier;

Expansion into California with a 16,000 sq ft micro business facility with retail, processing, and distribution licensing.

"Launching Grown Rogue in Oregon required fastidious planning and execution in order to be successful," said Obie Strickler, Founder and CEO. "We properly navigated the regulatory environment for recreational cannabis and refined the preferred consumer experience around brands and product selection, and established innovations in product development and packaging. Operating in a State like Oregon that was early to legalize cannabis has provided a tremendous amount of intellectual, operational, and cultivation expertise. We also have significant understanding of the cannabis consumer and evolving cannabis products and formats. We are taking this expertise and applying it into new states and are particularly optimistic about the tremendous opportunity in Michigan."

Michigan is the first state in the Midwest to vote for the legalization of recreational cannabis . Michigan has the largest medical cannabis population per capita and is second only to California in total medical users. As a relative comparison, the state of Michigan has a population of approximately 10 million people and about 313,000 registered medical cannabis patients according to Michigan Live , or 3.1%, compared to Canada with a population of approximately 38 million, which had 342,103 registered medical patients at September 30, 2018 according the Health Canada , or 0.9% where cannabis is fully legal at both provincial and federal levels.

By any measure, Michigan has one of the most active medical cannabis markets in America which is a leading indicator in the potential size of the recreational market.

Number of legal medical marijuana patients in the U.S. as of May 2018, by state according to ProCon.org:

STATE # OF MEDICAL MARIJUANA PATIENTS STATE POPULATION # OF PATIENTS PER 1,000 RESIDENTS Michigan 269,553 9,9962,311 27.06 California 915,845 39,536,653 23.16 Colorado 88,946 5,607,154 15.86 Oregon 45,210 4,142,776 10.91 Washington 80,818 7,405,743 10.91 Massachusetts 48,265 6,859,819 7.04

Grown Rogue's current expected portfolio in Michigan includes two strategically positioned retail centers (known as provisional licenses) in Hazel Park and Midtown Detroit as well as a 19,000 sq ft cultivation center in Detroit. Additional license acquisitions are being reviewed.

"Our expansion into Michigan has the potential to add substantial value to the overall business. Our track record of growth to date should give current and future shareholders the confidence that we will continue to perform in the exciting Michigan market," added Jacques Habra, Chief Strategy Officer.

Grown Rogue expects Michigan operations to begin generating revenue in late 2019.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: NVSIF) is a vertically-integrated, multi-state cannabis company curating innovative products to provide consumers with the right cannabis experience. Each of Grown Rogue's products and strains are categorized and marketed based on unique effects and designed for the full range of a consumers' lifestyle. Grown Rogue is scaling the vertically integrated model into multiple states by incorporating best-in-class manufacturing facilities and a proprietary distribution platform based on Microsoft technology. Grown Rogue's diverse cannabis product suite includes premium flower, patent-pending nitrogen sealed pre-rolls, oil and concentrates, and edibles featuring a partnership with world-renowned chocolatier, Jeff Shepherd.

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This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company's Listing Statement available on www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.

Safe Harbor Statement:

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company's Form 20-F and 6-K filings with the Securities and Exchange Commission.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are disclosed in the Company's Listing Statement filed on its issuer profile on SEDAR at www.sedar.com . Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Grown Rogue International Inc.

For further information: on Grown Rogue International please visit www.grownrogue.com or contact: Obie Strickler, Chief Executive Officer, [email protected]; Jacques Habra, Chief Strategy Officer, [email protected]; Investor Relations Desk Inquiries, [email protected]