Ann: MGC Derma - CannaGlobal Transaction Update, page-2

MXC to receive the first instalment of CannaGlobal’s initial C$1 million order under
5-year exclusive CBD and cosmetic materials supply agreement this week

The full C$1,000,000 first supply order remains on track be paid by CannaGlobal in
approximately 10 business days of MXC’s binding term sheet announcement,
together with finalisation of formal agreements

MXC to supply CBD, proprietary production IP, and cosmetic materials under the
first Supply Agreement order, for new production of MGC Derma cosmetics

CannaGlobal was founded by highly respected entrepreneur, and Canadian
cannabis industry pioneer, Lorne Gertner

Lorne is widely recognised for co-founding Canada’s first listed medical cannabis
company, Cannasat Pharmaceuticals, and as the major shareholder in cannabis
retail chain Tokyo Smoke, which as part of the HIKU group of brands sold to Canopy
Growth Corp for C$269 million in 2018

MXC and CannaGlobal have made significant progress to finalise the formal
Definitive Agreement for the sale of 100% MGC Derma to CannaGlobal, which is
now expected within the coming days