Newstrike Brands Ltd. announced that it has entered into an agreement, as of November 28, 2018, with Peter Neal and Chris Neal and their company, Neal Brothers Inc. to create a co-branded specialty food products company (the "Joint Venture Agreement") to develop, market and sell cannabis edibles. The joint venture partners will conceive and develop innovative edible cannabis products at Newstrike's fully-licensed Niagara operations, where an in-house research and development facility is being constructed. Product development and future product brand names will be based on consumer data and insights. Pursuant to the Joint Venture Agreement, Newstrike and Neal Brothers have incorporated a joint venture entity and have agreed on terms relating to the management and control of the specialty food products company (the "Joint Venture"). The company and Neal Brothers will contribute proportional capital in the Joint Venture in exchange for a 60% and a 40% interest in the Joint Venture, respectively. The Joint Venture will be involved in the procuring, manufacturing, distributing, marketing and selling of certain co-branded specialty food products which will be infused, derived or otherwise include cannabis.