High Park Expands Production Capacity with New Processing License from Health Canada

Business Wire 7-Jan-2019 8:00 AM

The licensed High Park facility located in London, Ontario allows the Company to expand its capacity to supply a range of branded adult-use cannabis products exclusively for the Canadian market

High Park Holdings Ltd. ("High Park"), a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY), announced today that it has received a standard processing license under the Cannabis Act to process cannabis into finished branded products at its state-of-the-art facility located in London, Ontario. The license will also allow High Park to conduct certain research and development activities on new cannabis form factors.

Led by High Park's team of industry experts responsible for innovation, research and the development of High Park's portfolio of cannabis products, the facility will be utilized to process a wide-range of finished branded products from dried cannabis into differentiated form factors such as edibles (including oils, confectioneries and beverages), topicals, and concentrates, exclusively for the adult-use cannabis market in Canada, once permitted by laws and regulations.

In April 2018, High Park announced an initial investment of up to C$10 million in the 56,000-square foot London facility. This processing, research and development facility will receive raw material from High Park Farms Ltd.™ ("High Park Farms"), which has an affiliated cultivation and processing facility, located in Enniskillen, Ontario. High Park Farms currently features 13 acres of greenhouse space located on 100 acres of property and represents an initial C$30 million investment and the creation of more than 200 jobs. High Park Farms received a cultivation license in April 2018 and a sales license in September 2018. Upon the federal legalization of adult-use cannabis in Canada on October 17^th, 2018, High Park Farms and its affiliates fulfilled initial adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon.

"This license marks another step forward as High Park increases its capacity to supply differentiated form factors of branded cannabis products for adult-use consumers in Canada," says Brendan Kennedy, Chief Executive Officer, Tilray. "We believe great brands and products are critical in the long-term endurance of a dynamic legal cannabis industry, and we're pleased to be well-positioned to meet the increasing demand for these products."

High Park is proud to have launched and secured the exclusive rights to distribute world-class cannabis brands for the Canadian market, subject to applicable laws and regulations. Brands developed or licensed by High Park include:

• Canaca™ proudly builds on its homegrown heritage with cannabis products crafted by and for Canadian cannabis enthusiasts.
• Dubon™ is a vibrantly Québécois cannabis brand. Dubon offers master-crafted cannabis strains, exclusively available through the Société québécoise du cannabis in Québec (SQDC).
• Yukon Rove™ is a cannabis brand designed to embody the spirit of Northern Canada. An assortment of strains are available from Yukon Rove, exclusively in the Yukon territory.
• Irisa™ is a women's wellness brand designed to integrate with consumers' self-care rituals.
• Grail™ is a premium cannabis brand that offers connoisseurs a unique variety of products, including rare strains with exotic cannabinoid and terpene profiles.
• Marley Natural™ is crafted with deep respect for natural well-being and the positive potential of the herb. Marley Natural products will include whole flower, pre-rolls, vape oil cartridges and cannabis-infused edibles.*
• Dutchy™ is a brand of choice for more frequent consumers. Dutchy's products will include whole-flower, pre-rolls and vape oil cartridges.*
• Headlight™ offers experienced consumers cannabis concentrates, waxes and high potency vape oil cartridges.*
• Goodship® makes award-winning cannabis edibles. The Goodship brand is known for its delectable cannabis-infused baked goods, chocolates and confections.*
• Wallops™ are creators of high-intensity chews and confections.*

*Form factors such as concentrates, waxes, and edibles are currently not permitted under Canadian adult-use legislation, but are expected to be legalized by October 17, 2019.

High Park looks forward to sharing more information about the research and development of its differentiated brand portfolio and the expansion of its production capacity, in the coming months.

About High Park ™Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park was established to develop, produce, sell, and distribute a broad-based portfolio of adult-use cannabis brands and products. High Park is a wholly-owned subsidiary of Tilray, Inc., a global leader in cannabis cultivation, processing, and distribution. Tilray will continue to serve patients in Canada and around the world with a diverse range of pharmaceutical-grade medical cannabis products as High Park focuses on creating distinctive products for adult consumers.

Cautionary Note Regarding Forward-looking StatementsThis press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws, or collectively, forward-looking statements. Forward-looking statements in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, including statements in respect to Tilray's intention to expand its licensed facilities and launch brands or products through its affiliates, and Tilray's expectations relating to new Health Canada regulations. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment and future approvals and permits. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Please see the heading "Risk Factors" in Tilray's Quarterly Report on Form 10-Q, which was filed with the Securities and Exchange Commission and Canadian securities regulators on November 14, 2018, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Tilray does not undertake and specifically declines any obligation to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

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