SOURCE: Golden Leaf Holdings Ltd.

Golden Leaf Holdings Ltd.

July 12, 2017 11:30 ET

Golden Leaf Announces Release of Escrowed Funds and Conversion of Subscription Receipts into Common Shares and Warrants and Payment of Chalice Acquisition Purchase Price

TORONTO, ON--(Marketwired - July 12, 2017) - Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE: GLH) (CSE: GLH.CN) (CNSX: GLH) (OTCQB: GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce that the Company has satisfied the outstanding conditions for the release of the escrowed funds from GLH's previously announced C$35 million brokered private placement of subscription receipts (the "Subscription Receipts"), which closed on June 2, 2017 (the "Offering").

In connection with the escrow release, the 125,892,857 Subscription Receipts issued pursuant to the Offering have been converted into 125,892,857 common shares (each, a "Common Share") and 62,946,428 common share purchase warrants of the Company (each, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share (each, a "Warrant Share") at a price of $0.37 per Warrant Share, until June 2, 2019. All securities issued pursuant to the Offering remain subject to a statutory hold period of four months and one day, expiring on October 3, 2017.

Further to the Company's press release dated July 10, 2017, the Company has used a portion of the escrowed proceeds to fund the cash consideration payable to the vendors in connection with the closing of the Chalice acquisition and issued 83,418,687 common shares to the Chalice vendors.

Canaccord Genuity Corp. acted as the lead agent of the Offering for a syndicate of agents (the "Agents") including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation. AC Group Financial Inc. acted as an advisor to the Company in connection with the Offering and the Chalice acquisition.

About Golden Leaf Holdings:

Golden Leaf Holdings Ltd. is one of the largest cannabis oil and solution providers in North America. It's a leading cannabis products company in Oregon built around recognized brands. GLH leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.

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