Receipt of Conditional Approval to List on the CSE

October 31, 2017 by Lineage Grow

TORONTO, Oct. 31, 2017 (GLOBE NEWSWIRE) — Lineage Grow Company Ltd. (“Lineage” or the “Company”) is pleased to announce that it has received conditional approval from the Canadian Securities Exchange (the “CSE”) to list its shares under the symbol “BUDD”. The Company also wishes to announce that it is undertaking a brokered private placement offering (the “Concurrent Financing”) in accordance with the previously announced Proposed Transaction (the “Proposed Transaction”) with Nutritional High International Inc. (“Nutritional High”) regarding the construction of a cannabis cultivation facility in Colorado (please see press release dated February 28, 2017).

Conditional Approval to List on the CSE

Lineage is pleased to announce that the Company has received conditional approval to list its Common Shares (“Common Shares”) on the CSE subject to the completion of the Concurrent Financing and completion of customary listing requirements of the CSE, including receipt of all required documentation.  The Company is working to meet the CSE listing conditions in a timely manner. Once final approval is received, the Common Shares of Lineage will commence trading on the CSE under the ticker symbol “BUDD”.

Concurrent Financing

Closing of the Concurrent Financing is expected to occur on or about November 30, 2017 and is for a maximum of 6,000,000 units (“Units”) and a minimum of 3,000,000 Units to raise gross proceeds in the range of $750,000 to $1,500,000. Each Unit will have an issue price of $0.25 and consist of one (1) Common Share and one-half (1/2) of one common share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder to purchase one Common Share at a price of $0.325 per Common Share until the date which is twenty-four (24) months following the closing date of the Offering, whereupon the Warrants will expire.

Lineage intends to use the net proceeds from the Offering to establish a cannabis cultivation facility in Pueblo, Colorado and for general working capital.

The Concurrent Financing is being co-led by Foundation Markets Inc. (“FMI”) and BSM Capital Corporation (“BSM”) who will be paid selling agents’ fees of up to 8% of the gross proceeds raised under the Concurrent Financing , and common share purchase warrants (the “Broker Warrants“) of up to 8% of the number of Units sold under the Concurrent Financing . Each Broker Warrant shall entitle the holder to purchase one Common Share at a price of $0.25 per share, exercisable for a period of 24 months.

The Concurrent Financing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the CSE. The securities issued and issuable pursuant to the Concurrent Financing will be subject to a four month and one day statutory hold period in accordance with applicable securities laws. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Management Commentary

David Drutz, CEO of the Company commented: “Going public on the CSE will be a significant achievement for Lineage. With this broader reach, we now have the ability to tap the global financial markets and we look forward to welcoming many new investors that share our vision for the future of craft cannabis. We are striving to develop an authentic, premium-quality craft cannabis brand and view these developments as significant milestones in that pursuit.”

About Lineage Grow Company Ltd.

Lineage Grow Company Ltd. is a reporting issuer that is seeking listing on the Canadian Securities Exchange (“CSE“). Lineage is focused on establishing state-of-the-art cultivation facilities and a view towards developing a dominant brand of premium quality craft cannabis. Lineage is seeking to deploy advanced cultivation techniques and best-of-breed genetics to develop a brand of craft cannabis known for emphasizing the unique flavors, smells, and potencies of each individual strain. By leveraging cutting edge agricultural and technological solutions, Lineage intends to optimize the variable costs associated with cannabis cultivation and successfully produce craft cannabis at a commercially viable industrial scale.

For further information, please contact:

David Drutz, CEO
Lineage Grow Company Ltd.
(416) 479-4142
Email: ddrutz@lineagegrow.com

NEITHER THE TSX VENTURE EXCHANGE, OR THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATION SERVICES PROVIDERS (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include the ability of the Company to de-list its common shares from the TSXV and otherwise to successfully operate its business in the cannabis industry. There is no certainty that any of these events will occur.  Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.

Company’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. Persons”, as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.

Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by applicable securities laws.

https://globenewswire.com/news-release/2017/10/31/1169840/0/en/Lineage-Announces-Receipt-of-Conditional-Approval-to-List-on-the-CSE-and-Brokered-Private-Placement.html