TransCanna Holdings Inc. announced that construction of Phase 2 has begun at the company's 196,000 square foot Daly Facility in Modesto, California. Following the successful refinancing of the Daly Facility through a USD 15,800,000 loan from Pelorus Equity Group, the company announced construction is again underway at its Daly Facility in Modesto, California. Through the refinancing with top lender in the cannabis space, Pelorus Equity Group, TransCanna unlocks USD 4,000,000 construction budget.

Work commences this week with trades in the building. After near completion with delays due to Covid the Company announced construction work on Phase 1 will be finished in short order. The company will provide material updates as work progresses.

Completion of Phase 1 will allow the Company to have all 5 approximately 4,500 sq. foot cultivation rooms aka 'Phase 1' of the Daly Facility operational - a very significant milestone for the Company. Concurrently construction crews will commence work on Phase 2, adding: 4 more approximately 4,700 square foot cultivation rooms; 3 new curing rooms to accommodate scaled up production of all 9 large cultivation room, giving the advantage of cutting the time in between cycles and rooms being replanted; Climate and Humidity controls to aid cultivation of different genetics, furthering the company's ability to consistently stay ahead of trends and produce top quality exotic indoor stains; New Vegetative rooms to support increased scale of production rooms at the facility and ability to house and test more genetics and produce larger amounts of high-quality clone stock in-house.

Construction of Phase 2 is expected to take 4 to 5 months. A fundamental shift for the company will be to focus on selling its premium high-quality product via a wholesale model. This decision was made to ensure not only immediate payment as opposed to the 90 days plus retail route, but also to work with the bigger brands who now have the effective distribution into the California market.