Gaia Grow Corp. announced the expansion of its relationship with CannGroup Development Corp. ("CDC") in line with the sales-based relationship discussed in its March 2, 2020 press release, the companies have come to an agreement to expand their business relationship to allow for the addition of an exclusive-use extraction line in CDC's new subsidiary Site 2 license in Calgary tentatively slated to be licensed and operational by the end of third quarter of 2020. CDC's principal site in Enderby, British Columbia, is a licensed cultivation and processing facility that has its own in-house cannabis production and access to trusted third-party biomass that together occupy the majority of the utility of its extraction machinery's capacity. Among other initiatives to increase its processing volume potential, medical sales capacity and logistical reach across Canada, CDC has recently created a subsidiary, TruExtracts (Calgary) Inc. ("TRU"), that has leased a manufacturing facility and filed the required paperwork with Health Canada for expansion of CDC's current license onto this secondary site in Calgary, Alberta. Initially, Gaia and TRU have signed a memorandum of understanding ("MOU"), wherein Gaia has proposed to make an investment of capital in two forms: Initially, in the form of high-volume biomass extraction and refining equipment for use within the licensed square footage inside the TRU Calgary facility. The initial goal of this installation is to ensure GAIA has its own uninterrupted extraction capacity for Gaia's 2019 harvest hemp biomass to crude, distillate and isolate in one production line, creating saleable finished product to serve the varying and growing demands of the Canadian medical cannabis marketplace. From the profit generated via the sales of extracted/refined product, sold via CDC's Medical Sales License, Gaia would also commit to an investment of no less than $2,000,000 into TRU in exchange for an equity position in TRU's operations. Gaia will only reinvest from revenues generated at the Calgary facility and will not be placing any upfront treasury funds into the venture. Furthermore, all Operations, Quality Controls, Quality Assurance and Sales in the Calgary facility would be conducted under TRU's Standard Operating Procedures and licensing. Additional details about and terms of the Definitive Agreement will be provided once it is completed in the near future. This exclusive jointly-owned processing line will ensure capacity for Gaia's milled hemp biomass that it toll processes via the Enagon joint venture in Lacombe, Alberta, as well as open up partnership opportunities with CDC's and TRU's sales teams and Gaia's industry contacts to source third-party cannabis and hemp products for extraction through TRU's Calgary facility.