The agreement is aligned to Canada House Wellness Group's Health and Wellness strategy for the Canadian adult-use market

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Nov. 14, 2019 /CNW/ - Canada House Wellness Group Inc. (CSE: CHV) ("Canada House" or the "Company"), is pleased to announce that its wholly owned subsidiary, Abba Medix Corp. ("Abba"), has entered into an exclusive licensing agreement with California-based SCM Tech ("SCM"), to bring its leading Santa Cruz Medicinals™ brand of CBD infused health care product lines to Canadian consumers.

"Adding a high-quality CBD product offering to Abba's portfolio will have an immediate impact on our Health and Wellness strategy for the Canadian adult-use market. The Santa Cruz Medicinals product line aligns well with this strategy," said Michael Orrbrooke, President, Abba Medix and Chief Revenue Officer, Canada House. "This is an important relationship for Canada House as we secure additional distribution channels for Abba in Canada."

Under the terms of the five-year licensing agreement signed November 13, 2019, Abba will license SCM's intellectual property including formulations, manufacturing techniques, trademarks, and marketing materials for the Canadian marketplace based on a nominal minimum sales threshold and license fee.

Santa Cruz Medicinals™ products will be produced and marketed in accordance with applicable Canadian laws and regulations for the adult-use recreational cannabis market.

"We have wanted to enter the Canadian market for some time and were looking for a partner that shares our values," said Brendan Ruh, CEO, SCM. "Canada House's commitment to the Canadian Health and Wellness space makes them the perfect partner for expanding our brand into Canada."

"Over the last several months, we have increased production at our facility, received our amended sales license, began selling our Abba branded cannabis to the medical market, and announced a supply agreement in Germany," said Chris Churchill-Smith, CEO, Canada House. "As we continue to focus on generating new revenue streams and increasing market share, the SCM partnership not only adds a high-quality CBD product line to our portfolio, but will allow us to benefit from SCM's expertise in the development of additional Abba Medix branded formulations for our medical patient base."

About Santa Cruz Medicinals

Santa Cruz Medicinals™ provides potent CBD formulas to consumers looking for a high-quality dose of CBD through various products and product lines. SCM believes in the importance of providing CBD in many formats and developing unique high-quality potent products for the CBD Health and Wellness market. For more information visit www.SCMedicinals.com. You can also follow Santa Cruz Medicinals™ on Instagram @santacruzmedicinals.

About Canada House Wellness Group Inc.

Canada House Wellness Group Inc. is the parent company of Abba Medix Corp., a Licensed Producer in Pickering, Ontario that produces high quality medical grade cannabis; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.

Canada House Wellness Group's goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit www.canadahouse.ca.

Cautionary Statement Regarding Forward-Looking Information. This press release contains forward-looking statements, including statements that relate to, among other things, the Company's clinic, production and technology businesses, its future plans, the Company's markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis legal for recreational use by October 17, 2018; Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canada House Wellness Group Inc.

For further information: Liana Del Medico, Director of Communications & Investor Relations, Canada House Wellness Group Inc., 416-553-3820, [email protected]