Mota Ventures Corp. announced that it has entered into a binding agreement (the "Transaction Agreement") dated July 21, 2020, with Franchise Cannabis Corp. ("Franchise") to form a joint venture in Europe ("European JV") to sell and market Franchise-manufactured CBD, hemp and cosmetic products in the European Union, Switzerland, Norway and the United Kingdom (the "JV Territory").

Sales of the custom manufactured products will be sold online utilizing the Company's eCommerce infrastructure. Pursuant to the Transaction Agreement, Franchise has agreed to make a $500,000 equity investment into the Company through a private placement subscription of $0.28 per unit ("Units"). Each Unit will consist of one (1) common share of Mota Ventures (each, a "Share") and one (1) Share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to purchase one additional Share (each, a "Warrant Share") at a price of $0.38 per Warrant Share for a period of twenty-four (24) months from their date of issue.

Mota Ventures will then make a $360,000 equity investment into the European JV, which will be used to develop the business operations of the European JV, including the initial funds to launch the Franchise products in Europe using the Company's eCommerce expertise. The private placement Shares will be subject to a four-month- and-one-day statutory hold period in accordance with applicable securities laws. The parties' respective ownership interests in the European JV will be 50/50.

Franchise will manage procurement and fulfillment of customer orders from its European manufacturing facilities. Mota Ventures will provide marketing and eCommerce operations infrastructure in the JV Territory. The parties will determine the appropriate products to launch sales and marketing initiatives and will provide further details in the coming weeks.

The establishment of the European JV is subject to Franchise making the $500,000 investment in Mota Ventures and Mota purchasing a 50% interest in the European JV for $360,000.