Lobe Sciences Ltd. ('Lobe' or the 'Company') (CSE: LOBE) (OTC Pink: GTSIF) and Ionic Brands Corp. ('Ionic') (CSE: IONC) (FRA: IB3) (OTC: IONKD) are pleased to announce that, further to their press releases dated December 1, 2020, Lobe's wholly owned subsidiary Green Star Biosciences Inc. has signed a definitive binding asset purchase agreement dated February 22, 2021 (the 'Agreement') with Ionic Brands with respect to the sale to Ionic Brands of certain assets held by Lobe's subsidiary vendor relating to Washington-based Cowlitz County Cannabis Cultivation Inc. ('Cowlitz'), for total consideration valued at approximately $32,000,000 (the 'Transaction'), based on the cash value in respect of the cash portion of the consideration and the previous closing price of the common shares of Ionic Brands (the 'Ionic Brands Shares') on the Canadian Securities Exchange in respect of the share-based consideration.

Philip Young, CEO of Lobe states 'We are extremely pleased with this transaction as we believe it is accretive to both parties. The share ownership we will have in Ionic Brands will allow Lobe to continue to benefit from Cowlitz's growth and Ionic Brands' entire operations in the Pacific Northwest under the experienced leadership of John Gorst. This transaction will also provide Lobe with significant non-dilutive capital which will allow the Company to continue to pursue its business objectives and other M&A initiatives in the transformative medicine industry.' John Gorst, CEO of Ionic Brands Corp. states 'This transaction will allow our shareholders to benefit from the continued growth of the Cowlitz brands. Meantime, we look forward to integrating the full suite of the Cowlitz brand assets into our portfolio offered in the Washington and Oregon markets. We look forward to strategically working with the Cowlitz operating team to bring even greater value to our shareholders in the months and years ahead as we expand our brands across the country.'

All Ionic Brands Pref Shares and Ionic Brands Shares to be issued will be subject to contractual restrictions on transfer, pursuant to which 20% of the Ionic Brands Shares issued will be restricted from trading for a period of seven (7) months from the Closing Date, and further 20% releases will occur on the date that is ten (10), thirteen (13), fifteen (15) and eighteen (18) months from the Closing Date (subject to compliance with all applicable securities laws). The assets being sold to Ionic Brands include the assignment of all property leases relating exclusively to Cowlitz's business, the assignment of Lobe's option agreement to acquire all of the outstanding shares of Cowlitz, certain trademarks and intellectual property related to Cowlitz, and the assignment of other contracts and rights related exclusively to Cowlitz including service contracts and equipment leases (the 'Assets'). The Transaction is subject to standard closing conditions, including receipt of applicable corporate and regulatory approvals. In addition, the Transaction is subject to Ionic Brands arranging at least 90% of their outstanding 10% debentures being converted into preferred voting shares of Ionic Brands at a price of $0.30 per share prior to the Closing Date, such that no more than $1,800,000 in debentures (including principal and accrued interest) will be outstanding on the Closing Date. Following the closing of the Transaction, Ionic Brands' board of directors is expected to be comprised of seven (7) members and Lobe will have the right to appoint two (2) directors to the Ionic Brands board. There can be no assurances the Transaction will be completed as proposed or at all. The Company anticipates closing the Transaction prior to March 31, 2021.

About Lobe Sciences Ltd.

Lobe Sciences is a life sciences company focused on psychedelic medicines. The Company, through collaborations with industry leading partners, is engaged in drug research and development using psychedelic compounds and the development of innovative devices and delivery mechanisms to improve mental health and wellness.

Contact:

Tel: (949) 505-5623

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