Emblem Corp. and GreenSpace Brands announced a strategic partnership to develop and commercialize cannabidiol infused health and beauty products for the expected adult-use cannabis market. Under the terms of the agreement, GreenSpace will commit to a five-year exclusive CBD supply agreement with Emblem.

In addition, Emblem will make a $2 million investment in GreenSpace consisting of $1 million in common shares at a 20-day volume weighted average price of $0.98 per share and $1 million in unsecured convertible debentures to fund the start-up of GreenSpace's CBD business. The debentures will mature five (5) years from the closing date and will automatically convert into common shares upon the satisfaction of certain conditions (each, a Milestone) at a conversion price equal to the lesser of: (i) $1.05; and (ii) the twenty (20) day volume-weighted average price of the common shares on the TSX Venture Exchange (the Exchange) on the date the applicable Milestone is achieved, provided that the conversion price shall not be less than $0.94 and that the automatic conversion will be deferred if the market price is less than $0.75 at the time the Milestone is met. Emblem will earn a 4% royalty on all hemp-based CBD product sales and a 7% royalty on all cannabis-based CBD product sales.

In addition to the Emblem investment, GreenSpace has also received a $1 million strategic equity investment from a key supplier who will assist with maximizing commodity purchasing. The investment will be used for general working capital purposes. The transactions contemplated herein are subject to a number of customary closing conditions.