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PRESS RELEASE: EuroLife to Acquire Stake in One of Europe's Largest Hemp Cultivation Projects

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DGAP-News: Eurolife Brands / Key word(s): Miscellaneous
EuroLife to Acquire Stake in One of Europe's Largest Hemp Cultivation
Projects
2019-11-22 / 22:01
The issuer is solely responsible for the content of this announcement.

Toronto, Ontario(Newsfile Corp. - November 22, 2019) - *EuroLife Brands
(CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) ("EuroLife" or the "Company"),* a
leading global markets cannabis brand empowering the medical, adult-use and
CPG cannabis industry, is pleased to announce that it has entered into a
Binding Letter of Intent (the "LOI") whereby EuroLife has been granted a
participation right in a state-of-the-art industrial hemp cultivation
operation located near Dresden, Germany. By virtue of an assignment
agreement, EuroLife has gained the right to purchase 20% of a to-be-formed
German corporate entity ("German HempCo") of which the assets will consist
of the Dresden hemp cultivation complex located near Dresden, Germany.

It is envisioned that German HempCo will be the domicile for the Dresden
hemp cultivation project in its entirety thus leveraging the robust existing
infrastructure and thereby amplifying EuroLife's entry into the European
Union (EU) hemp and CBD theatre. As per the terms of the LOI, the following
assets will be contributed to German HempCo, thereby making it one of the
largest fully operational outdoor hemp cultivation projects in Europe:

· More than 500 hectares (1,235 acres) of prime agricultural land
available for hemp cultivation near Dresden, Germany;

· Scalability via option agreement to approximately 2,000 hectares (4,900
acres);

· Approximately 110,000 kilograms of existing hemp biomass currently in
storage inventory that has been harvested and processed from the latest
harvest cycle;

· Existing off-take agreements and purchase orders;

· Specialized harvesting machinery capable of efficient commercial harvest
at a rate of 50 hectares (123 acres) per day;

· Specialized cleaning machinery utilized to extract and separate seeds
from stems using a mechanically induced vacuum process with negative
pressure;

· Specialized drying machinery;

· Drying rooms and warehouse space to be utilized for excess capacity,
storage, cleaning and drying.

*Strategy and Downstream Value Creation*

The Dresden hemp cultivation complex will serve as a key strategic asset for
EuroLife as it continues executing on its roadmap of creating a vertically
integrated enterprise operating in the hemp, CBD and wellness space within
the EU. Through sustained strategic deployment of capital and unification of
synergistic assets EuroLife aims to become amongst the largest cultivators
of hemp in Europe.

EuroLife intends to utilize its network of industry contacts and
touch-points in order to unlock additional synergy and value for German
HempCo. Near term goals include maximizing the value of the approximately
110,000 kilograms of existing hemp biomass that is currently on hand. In
addition, EuroLife has begun assessment of various ancillary product streams
for which the current and future harvest cycle inventory may be utilized. In
addition to standard CBD extraction for use in varying consumable products,
investigation into high value end-points such as smokable hemp flower,
'eco-friendly' sustainable paper and plastic packaging alternatives, fiber
and textiles, and animal feed are being assessed as avenues to capture
additional margin from the entire hemp plant. The Company is also assessing
the regulatory and licensing requirements surrounding the prospect of
introducing additional hemp varietals for future harvest, specifically,
higher value end product such as hemp strains containing elevated ratios of
Cannabigerol ("CBG").

"Gaining an interest in this world class hemp cultivation project is a
marquee moment for EuroLife as we have the opportunity to acquire ownership
in a highly tactical asset located in Germany, along with bolstering our
human capital expertise via direct cooperation with European personnel who
possess decades of agricultural experience coupled with specific expertise
in the cultivation of industrial hemp," said Shawn Moniz, CEO of EuroLife.
"We are very fortunate to become partners in this advanced stage hemp
cultivation project located in one of the most important cannabis markets of
the European Union. We are eager to work alongside the other notable
stakeholders of the project in order to establish EuroLife's leadership
position in the European hemp cultivation business while capturing
additional value-add downstream opportunities for the Company."

*European Hemp Market*

Boasting a population of over 700 Million citizens, with over 500 Million in
the EU alone, the European opportunity afforded within the hemp and
cannabidiol marketplace is growing at a substantial pace. EuroLife is of the
opinion that as the industry matures and normalization takes hold,
organizations equipped with low cost production combined with tactical
downstream capability will prevail.

Currently there is a robust hemp market in the EU, with production in most
member nations. In 2018, European cultivation grew by over 40% from 2015 to
more than 40,000 hectares of production. Hemp production is centered in
France, the Netherlands, Lithuania, and Romania, with France being largest
producer, accounting for almost 50% of Europe's total production.

The demand for hemp continues to grow fueled by the increasingly diverse use
of this crop including the production of cannabidiol (CBD), which can be
extracted for use in an array of food supplements, pharmaceuticals and
cosmetics. The legal cannabis market in Europe remains strictly medical,
however the consumption of hemp-derived CBD infused products for
recreational purposes is legally permitted across much of the continent.

With health and wellness taking hold of the global market the opportunity is
staggering. It is suggested that the CBD products market could account for
over 0.15% of the health and wellness market value by 2028. According to the
latest research by the Global Wellness Institute [1], the worldwide wellness
market grew 12.9% from $3.72 trillion in 2017 to $4.2 trillion in 2018. The
European CBD market alone is projected to be worth at least &euro1.5 billion
by 2023.

Under the terms of the LOI the Company will issue a combination of cash, in
staged payments, and common shares in order to purchase the proposed 20%
interest in the Dresden hemp cultivation project. The LOI is subject to
finalization of a Definitive Agreement and other customary closing
conditions.

The Company also announces that it has granted incentive stock options to
purchase a total of 450,000 common shares at an exercise price of $0.05 per
share for a period of two years to a director in accordance with the
provisions of its stock option plan.

*About EuroLife Brands Inc.*

EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) is a leading
global markets cannabis brand empowering the medical, recreational and CPG
cannabis industry worldwide through a data-driven CBD marketplace supported
by exclusive and unbiased physician-backed cannabis education and detailed
consumer analytics.

For additional information:

Contact: ir@eurolifebrands.com or visit EuroLifeBrands.com [2]

_No stock exchange or securities regulatory authority has reviewed or
accepted responsibility for the adequacy or accuracy of this release._

Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the Issuer's
future plans, objectives or goals, including words to the effect that the
Issuer or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their
very nature, they involve inherent risks and uncertainties. For a
description of the risks and uncertainties facing the Company and its
business and affairs, readers should refer to the Company's Management's
Discussion and Analysis and other disclosure filings with Canadian
securities regulators, which are posted on www.sedar.com.

To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/49999 [3]

Click on, or paste the following link into your web browser,to view the
associated documents http://www.newsfilecorp.com/release/49999
News Source: Newsfile

2019-11-22 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Eurolife Brands

Canada
ISIN: CA29876F1062
EQS News ID: 920267

End of News DGAP News Service

920267 2019-11-22


1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c020b0cd5075d719947714b48e7acd6f&application_id=920267&site_id=vwd&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=1a2f4cdb70c5844c0de01e513aae1547&application_id=920267&site_id=vwd&application_name=news
3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=47a6a2b17d77fc783ba50ba0a6aeaef1&application_id=920267&site_id=vwd&application_name=news


(END) Dow Jones Newswires

November 22, 2019 16:01 ET ( 21:01 GMT)
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