Flower One and Deuces 22 Enter Agreement to Bring Cannabis to Nevada

Flower One further bolsters their portfolio of Brand Partners with the addition of Deuces 22, founded by four-time NBA champion John Salley, and daughter Tyla Salley

TORONTO, July 18, 2019 /CNW/ - Flower One Holdings Inc. ("Flower One" or the "Company") (CSE: FONE) (OTCQX: FLOOF) today announced a licensing agreement with LA-based Deuces 22 – the new premium-quality, lifestyle cannabis brand founded by four-time NBA champion John Salley, and daughter Tyla Salley. Emphasizing quality and convenience, Deuces 22 is focused on providing cannabis consumers with access to locally-produced, high-quality flower. The cannabis brand has also established an inclusive and informative educational platform, Deuces Academy, aimed at reducing the complexity of cannabis for consumers of all experiences and levels of sophistication. Flower One is now licensed to manufacture, distribute, and sell Deuces 22's selection of high-quality dry flower and pre-rolls in Nevada. This marks the U.S.-market debut of Deuces 22.

"The Flower One team is thrilled to partner with Deuces 22, and introduce the brand and its products to Nevada and the U.S. market for the very first time," said Ken Villazor, President and CEO of Flower One. "Our portfolio of Brand Partners is further strengthened today with the addition of Deuces 22, a company that is not only passionate about providing high-quality, premium cannabis products to its consumers, but also taking the complexity and stigma out of cannabis products through their educational platform. With this announcement, Flower One continues to diversify the cannabis offerings made available to Nevada's cannabis retailers and consumers of all experience levels."

"The vastness of Flower One's cultivation and production operations made this partnership an easy decision. We strongly believe in their expertise and knowledge of the industry, and trust that as the Deuces 22 brand grows and evolves, the team and facility behind Flower One will be integral to our ability to reach and deliver a memorable experience to the market," said John Salley, Co-Founder and President of Deuces 22. "Today's announcement marks Deuces 22's inaugural launch in the U.S. recreational cannabis market, and we couldn't be happier to do so in Nevada with the support and guidance of Flower One."

"The skill and experience of Flower One was immediately evident. From our first meeting, we knew we had found an impressive, local producer with values that aligned with our own. Using industry-leading greenhouse technologies and innovative growing practices, Flower One's growers have an unparalleled level of agricultural expertise that we are very excited to leverage," said Tyla Salley, Co-Founder and CEO of Deuces 22. "We feel confident that Flower One is well-positioned to elevate the Deuces 22 brand, and to help us achieve our goal of delivering the best high without sacrificing accessibility or convenience."

A selection of Deuces 22's high-quality products will soon be available for purchase in Nevada, carefully branded to evoke a down-to-earth, additive-free experience that is reminiscent of a simple night at home surrounded by close friends. Pre-rolls will also soon be on retail shelves in the State, packaged with materials that are biodegradable and compostable at a much more sustainable rate compared to plastics. The Deuces 22 merchandise line – including t-shirts with graphic designs reading "#VeganAF" or "SATIVA" – will also be available in Nevada. Vape pens, edibles, CBD topicals, among other products, will follow in the near future.

About Flower One Inc.

Flower One is the largest cannabis cultivator, producer and full-service brand fulfilment partner in the highly lucrative Nevada market. Flower One's fully operational flagship 400,000 square-foot greenhouse and 55,000 square-foot processing and custom packaging facility is used for cannabis cultivation, processing, production and high-volume custom packaging of dry flower, pre-rolls, cannabis oils, distillates, concentrates, edibles, topicals and infused products. Operating under continuous harvest, Flower One is capable of producing 140,000 pounds (62,500 kilograms) of dry flower per year, housing over 80,000 plants per crop cycle across eight flower zones. The Company also owns and operates a 25,000 square-foot indoor cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products.

Leveraging its scale and more than 20 years of greenhouse operational excellence, Flower One offers consistent, reliable, high-volume, and just-in-time fulfilment to a growing number of established cannabis brands, including Flyte Concentrates, Rapid-Dose Therapeutics' Quick Strip, Old Pal, Palms, HUXTON, CannAmerica Brands, Grenco Science (G Pen), The Medicine Cabinet, La Vida Verde, The Clear Cannabis Group, and Deuces 22. The Company is fully licensed for medical marijuana cultivation and production, as well as recreational marijuana cultivation and production in the state of Nevada.

The Common Shares are traded on the Canadian Securities Exchange under the Company's symbol "FONE" and in the United States on the OTCQX Best Market under the symbol "FLOOF." For more information, visit:https://flowerone.com.

About Deuces 22

Deuces 22 is a premium cannabis brand dedicated to bringing you only the best products, from pre-rolls to topicals. Our products are easy to use, organic and eco-friendly, taking the complexity out of cannabis, and making them accessible to everyone, no matter your cannabis experience. At Deuces 22 we believe you should not have to sacrifice quality for convenience. That's why we work with trusted local growers to produce the highest quality flower tailored to your personal cannabis needs. For more information, visit: https://deuces22.com.

Cautionary Note Regarding Forward Looking Information

Statements in this press release that are not statements of historical or current fact constitute "forward looking information" within the meaning of Canadian securities laws and "forward looking statements" within the meaning of United States securities laws (collectively, "forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from historical results or from any future actual results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," "potential," "should," "may," "will," "plans," "continue" or other similar expressions to be uncertain and forward looking.

Forward-looking statements may include, without limitation, statements relating to the Company's ability to maintain its ongoing harvest at the Company's greenhouse and to expand the product offerings in Nevada; Company's leadership in cannabis cultivation, production and full-service brand fulfillment partner; the Company's ability to meet Deuces 22's production and cultivation standards and to execute Deuces 22's vision; the introduction of new products from Deuces 22 in the summer and some others over the course of 2019; the scale and capacity of Flower One's cultivation, production, processing and high-volume packaging facilities in Nevada; the profitability of the Nevada market; Flower One's production capacity of 140,000 pounds (62,500 kilograms) of dry flower per year, housing over 80,000 plants per crop cycle across eight flower zones; Flower One's ability to expand its cannabis offerings in Nevada or to offer the most cutting-edge cannabis experience; Flower One's ability to make Deuces 22's product series available in Nevada or to offer a diversity of products; the term of the licensing agreement with Deuces 22; Deuces 22's ability to continue delivering high quality, Ultra Premium Cannabis in and throughout our product and brands; and the potential quality and effects of Deuces 22's product series.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplaces in the United States through its subsidiary Cana Nevada Corp. Local state laws where Cana Nevada Corp. operates permit such activities; however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's management discussion and analysis dated May 30, 2019 (the :"MD&A") filed on its issuer profile on SEDAR at www.sedar.com.

The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement, the "Forward-Looking Statements" section contained in the Company's most recent MD&A. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company's public securities filings with the Canadian securities commissions, including the Company's most recent MD&A.

Although Flower One has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Flower One Holdings disclaims and does not undertake any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Flower One Holdings Inc.
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