Newton Energy Corp: Franchise Cannabis Reports a Surge in Patient Growth at German Subsidiary and Increased Supply from the Netherlands

• ACA Müller sales forecast to nearly double given the announced increase of medical cannabis quota this week;
• Medical cannabis patient numbers have surged over the past few quarters;
• The German Federal Institute for Drugs and Medical Devices ("BfArM") has confirmed they will not put a cap on imports of EU Good Manufacturing Practices ("EU GMP") grade medical cannabis into Germany; and
• First planting is currently underway in Denmark to start supplying the German market by Q1 2020 and a larger Phase 2 facility also under construction.

Over the past year, the Netherlands has limited the total shipments to Germany to a certain amount per month, of which ACA Müller has received about 25% of the quota with little increases until recently. This all changed a few days ago. Due to recent pressure from the German authorities, the Minister of Health in the Netherlands has announced that the Office of Medical Cannabis (the "OMC") will nearly double their quota, increasing annual exports to Germany from 1,500 kg to 2,500 kg annually. This supply increase is expected to start next month. In addition, the German Minister has also clarified that Germany will not impose any limits on medical cannabis imports into the country. Based on the continued patient growth, OMC supply increases, and Franchise's Denmark cultivation project currently underway, Franchise expects its sales to surge over subsequent quarters and could signal that ACA Muller's medical cannabis business is on the verge of significantly increasing across Europe.

See links to articles below:

Netherlands to hike cannabis exports to Germany by 1,000 kilograms per year

German sales of insurance-covered medical cannabis continue upward trend

Second Phase of Growth

Franchise believes the themes in the highlighted articles above demonstrate that Europe, and specifically Germany, are entering a second phase of growth. Recent government data also validates this. Medical cannabis flower sales have almost doubled year-on-year while the registered patient count has increased from around 40,000 in Q4 2018 to 65,000 at the end of Q1 2019. In a country of 85 million people Franchise believes the recent developments in German cannabis import policy will lead to accelerated growth in patients over the next two years.

Other EU countries are taking notice as they look to Germany's continued success with the current patient regime. Some examples of this are France starting a medical cannabis pilot program later this year, the UK opening expanded prescriptions in October, and the Italian Ministry of Defense recently starting to import from foreign companies for patient care. Bringing over 30 years of pharmaceutical import, export, and distribution experience across Europe, ACA Müller is well positioned to expand rapidly across the European Union and be a leader in the region. Franchise forecasts substantial growth in sales over the next few quarters similar to the trend seen in Canada, but at a much larger scale.

Given all the positive developments, Franchise has decided to expand its licensed cultivation operations in Denmark to match the increased demand and expand its margins. First planting has commenced at Franchise's pilot grow facility and the construction of a nearby, larger GMP facility. Franchise is striving to be a leading cannabis platform in Germany and to execute on its business plan of becoming a fully integrated seed to sale company focused on Europe and all other global markets as they open up.

Clifford Starke
CEO & President
Franchise Cannabis Corp.

For more information:

info@franchisecannabis.com
www.franchisecannabis.com

1600-100 King Street West
Toronto, Ontario M5X 1G5
416-285-6674

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DISCLAIMER FOR FORWARD-LOOKING INFORMATION

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including: the growth of the medical cannabis market in Germany and the EU, the regulations governing the growing, import and export of medical cannabis in Germany and the EU, Franchise's ability to profitably expand its cultivation and production of medical cannabis, and ACA Müller executing on the distribution and sales of medical cannabis to meet the expected increase in demand in Germany and the EU on a profitable basis. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe'' or "continue", or the negative thereof or similar variations. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company assumed no obligation to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

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