And Infusions Corp (EIC),
a subsidiary of Agraflora Organics International Inc (OTCMKTS:PUFXF),has taken over Winnipeg, Manitoba
based 51,500 Sq. Ft. manufacturing facility. The company expects to complete
the facility upgrades such as electrical, mechanical, architectural, and security
retrofits by September 2019 and comply with Health Canada regulations. Agraflora has a stake of 80% in EIC.

of over $750 million

expects to generate revenues of over $750 million per annum when the facility becomes
operational in Q1 2020. The company would distribute the products through
existing distribution channels in 20,000 locations that comprise Wal-Mart and

already have several hundred SKUs in production. It benefits from experienced confectioners
and chocolatiers, established supply chain management infrastructure, and
industry relationships.

Automated manufacturing line

expects delivery of automated depositing and manufacturing line in Q1 2020 for toffee,
chocolate, CBD infused gummies, hard candy, and caramel. The company expects the
completion of product development and R&D Lab for turnkey and
pharmaceutical grade edibles by August 2020.

expects the receipt of sales and processing licenses from Health Canada by Q1
2020. The company would engage cannabis license experts and 3 Sixty Risk
Solutions Ltd for expediting applications. It will also use these two firms for
developing SOPs (standard operating procedure).

is in advanced negotiations for the development and contract manufacturing of CBD
edible confections with Tier 1 licensed producers in Canada. It is also
negotiating for securing national listings for cannabidiol infused foods in
retail locations and major groceries.

the receipt of a license from Health Canada, EIC will engage in the production
of terpene and CBD infused products for functional, medicinal and adult use. Its
product line comprises caramels, toffees, gummies, gum, baked goods, glazed
pecans, cheese biscuits, caramel popcorn, cocoa cookies, salty pretzels, CBD
infused pet products, and powdered drinks.

Guidance for AAA Heidelberg facility

Agraflora has issued operating guidance for its wholly
owned AAA Heidelberg facility for Q3 2019 to Q4 2020. The company expects to
receive an export license, sales license, and processing license from Health
Canada. It expects fully optimized production facilities with capabilities of circa
1 million grams of dried craft cannabis flower.