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Supreme Cannabis and Khalifa Kush Enterprises Announce a Unique International Partnership

The Supreme Cannabis Company, a cannabis investment company based in Toronto, and Khalifa Kush Enterprises Canada, an affiliate of Khalifa Kush Enterprises, have entered into an exclusive consulting services agreement to develop and launch a lineup of premium cannabis products.

KKE will provide cannabis related consulting services to Supreme Cannabis who will be the exclusive producer of KKE branded products in Canada and, subject to certain approvals, international markets (other than the United States). This will include a strain to be developed by the parties in Canada based on KKE’s flagship “Khalifa Kush” strain. Supreme Cannabis and KKE will work to develop and commercialize a product lineup that is expected to include pre-rolls, extracts, capsules, and cannabis oils to be sold by Supreme Cannabis under the KKE brand.

“In 2015 I saw an opportunity to introduce the highest quality cannabis products I love and enjoy, to the American market. KKE USA was the first move in bringing amazing cannabis and cannabis experiences to our customers,” said Wiz Khalifa, principal of KKE. “Canada is a very important place to me with the idea for ‘Kush and Orange Juice’ being created in Toronto, it’s the perfect start for the international expansion of Khalifa Kush. My team and I have spent the past year finding a partner that shares our vision, values and passion for cannabis. The team at Supreme Cannabis understands the importance of high quality cannabis and how to produce high quality cannabis at scale. I am very excited to be working with them to bring Khalifa Kush quality products to Canada and other international markets".

“Wiz is a globally-recognized cannabis taste maker and connoisseur. KKE has had incredible success in U.S. adult-use markets, establishing a brand that is synonymous with ultra-premium quality, based on world-leading genetics. When I first met the KKE team, I was impressed by the quality of the “Khalifa Kush” strain and the level of care and involvement Wiz had with developing the strain and working with the cultivators to continue to improve quality batch-by-batch”, said John Fowler, President & Founder of Supreme Cannabis.

"We're not looking for any promotion. We're mainly looking for knowledge share from [Khalifa Kush Enterprises] to create genetics, develop products and market them in a compliant manner," Fowler was also quoted as saying.

With 7ACRES we’ve developed Canada’s first truly high-end cannabis brand based on our commitment to premium quality flower. We’re excited to be working with KKE Canada to build another brand with the same commitment to quality to continue the premiumization of our brand portfolio.

The arrangement includes a consulting services agreement between Supreme Cannabis and KKE Canada and a brand advisor agreement with Wiz Khalifa, LLC (collectively, the “Partnership”). KKE Canada will consult on a broad range of business and cultivation matters, including cannabis strain selection, development and branding, consumer education and more. The initial term of the Partnership is 5 years and may be extended by Supreme Cannabis for an additional 5 years, subject to certain conditions and the issuance of a number of common shares of Supreme Cannabis to be determined at the time of the renewal.

Under the terms of the agreement, Supreme Cannabis will have a three-year exclusive period to commercialize cannabis products under the KKE brand internationally (excluding the United States). Expansion into international markets will be subject to approval by KKE, legalization of cannabis products in those international markets and receipts of all required regulatory approvals.

As partial consideration for the Partnership, KKE Canada will receive 5,745,000 common shares of Supreme Cannabis (the “Supreme Shares”) and a CDN$1,000,000 initial cash payment. The issuance of the Supreme Shares has been conditionally approved by the TSX Venture Exchange. In addition, KKE Canada will receive annual royalty payments paid over the course of the Partnership calculated based on the sale of products developed pursuant to the Partnership.

About The Supreme Cannabis Company, Inc.

The Supreme Cannabis Company, Inc. is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Company’s portfolio includes its wholly-owned subsidiary and flagship brand 7ACRES.

7ACRES is a federally licensed producer of cannabis operating inside a 342,000-square-foot facility in Kincardine, Ontario. 7ACRES is dedicated to providing consumers with a premium-quality product that recognizes its customers are informed, discerning and value a brand and culture that aligns with their principles. 7ACRES brand success has been reflected in provincial supply agreements, where 7ACRES’ product is consistently listed in the highest brand category available to recreational consumers.

The Company’s growing portfolio also includes an equity investment and long-term global distribution partnership with Lesotho-based Medigrow for the exporting of medical-grade cannabis oil.

The Supreme Cannabis Company has consistently set the standard for innovation in the sector, including the design of growing facilities and development of operational excellence metrics. We are confident that together with our flagship brand, proprietary technology and products, truly unique culture, and industry-leading team, we will deliver our shareholders consistent long-term value creation.

About KKE

Khalifa Kush Enterprises is a groundbreaking global regulated cannabis brand. Founded in 2015 by Wiz Khalifa, Khalifa Kush Enterprises is quickly changing the face of the regulated marijuana industry with the mission of introducing high quality, highly curated products to legal recreational and medical markets worldwide.

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