Cannex and 4Front are arm's length parties. In connection with the Transaction, Cannex and 4Front have filed the initial suite of application materials with the Canadian Securities Exchange (the "CSE") to list the Resulting Issuer's subordinate voting shares ("Subordinate Voting Shares"). The Transaction is subject to certain approvals, including CSE approval, approval of the 4Front members and approval of at least 66.6% of the votes cast by Cannex shareholders at a special meeting expected to take place on April 18, 2019. CSE Stock Halt and OTCQX Quotation The Transaction is expected to constitute a "fundamental change" for Cannex, as defined in CSE policies. Pursuant to CSE policies, the Company's stock has been halted and will remain halted until all required documentation with respect to the Transaction has been received by the CSE and the CSE and applicable securities regulatory authorities are otherwise satisfied that the halt should be lifted. The Company's common shares are also quoted on the OTCQX.