GlobeNewswire Inc | Mar 23, 2021 04:01PM EDT

March 23, 2021

VANCOUVER, British Columbia, March 23, 2021 (GLOBE NEWSWIRE) -- BC Craft Supply Co. Ltd. (the Company or BCCraft) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) is pleased to announce that it has entered into a letter of intent dated March 22, 2021 to acquire Somo Industries Inc. dba Feelwell Brands (Somo Industries). Based in California, Somo Industries operates Clix, a licensed cannabis brand operating in the state of California. Clix is focused on bringing wellness inspired, micro-dosed, dispensed cannabis to the California market. It has two products currently for sale in California: Herbal Blended Pre-rolls and Herbal Blended Tablets. It plans to bring two more products to market later this year: Herbal Blended Flower Sticks and Hot Drink Elixirs (THC infused Golden Turmeric Milk, Chai Latte and Hot Chocolate).

Terms of the Proposed Acquisition

Under the terms of the letter of intent, BC Craft will acquire Somo Industries in return for the issuance of 30,812,320 units (Units) of the Company to the vendors, to be issued at a deemed value of $0.08925 per Unit. Each Unit is comprised of one common share (each a Share) and one-half of one (1/2) common share purchase warrant (with two half warrants being a Warrant), each whole Warrant is exercisable to acquire one additional Share at a price of $0.12075 for a period of two years. The closing of the acquisition of Somo Industries remains subject to the completion of due diligence reviews by both parties and the mutual agreement on the structure of the transaction in the most efficient manner.

Matthew Watters, CEO of BC Craft stated, We are excited to pursue the acquisition of Somo Industries and look forward to integrating the Somo team into our current team. The acquisition of Somo Industries will provide BC Craft with immediate U.S based sales and distribution in the State of California in addition to opening up opportunities to expand into other legal states as they scale their operations. We will also explore producing selective products for the Canadian recreational market as there is a unique opportunity to introduce Somos innovate product offering to the Canadian consumer.

For further information, please contact Matthew Watters, Director, at (604) 687-2038.

AboutBCCraftSupplyCo. Ltd.

Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada's craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.

BC Crafts subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.

Click here to connect with BC Craft Supply Co. on Instagram, Twitter, LinkedIn andFacebook, and click hereto find more information on the Company.

CONTACT

Matthew Watters, Direct Phone: 604-687-2038Email: mwatters@bccraftsupplyco.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

This news release includes certain forward-looking statements under applicable Canadiansecurities legislation. Forward-looking information in this press release includes statementsrelating to Ava Pathways ability to provide access to tested and standardized naturally-derived andsynthetic materials for the production of superior psychoactive and non-psychoactive formulationsand the emerging psychedelic space becoming legal and social acceptable from the broaderpopulation. Although the Company believes that the material factors, expectations and assumptionsexpressed in such forward- looking statements are reasonable based on information available to iton the date such statements were made, no assurances can be given as to future results, levels ofactivityand achievementsand suchstatements arenot guaranteesof futureperformance.

Forward-looking statements are necessarily based upon a number of estimates and assumptionsthat, while considered reasonable, are subject to known and unknown risks, uncertainties, andother factors which may cause the actual results and future events to differ materially from thoseexpressed or implied by such forward-looking statements. There can be no assurance that suchstatementswillprovetobeaccurate,asactualresultsandfutureeventscoulddiffermateriallyfrom those anticipated in such statements. The forward-looking information contained in thisrelease is expressly qualified by the foregoing cautionary statements and is made as of the date ofthis release. Accordingly, readers should not place undue reliance on forward-looking statements.BC Craft disclaims any intentionor obligation to update or revise any forward-looking statements,whetherasa resultofnew information,futureevents orotherwise, exceptasrequired bylaw.