Medcolcanna Organics Inc. announced that Dona Blanca Limited (Dona Blanca), has elected to enter stage 2 of the previously announced joint venture arrangement with Medcolcanna (the JV) and will invest an additional USD 483,000 which will complete Dona Blanca's total investment of USD 1,000,000 on two hectares of greenhouse space on Medcolcanna's fully licensed cultivation property, which will earn Dona Blanca a 70% working interest ("WI") in those two hectares. Pursuant to the definitive agreement with respect to the JV, Dona Blanca had agreed to invest up to USD 1,000,000, to build up to an additional two (2) hectares of greenhouses on Medcolcanna's fully licensed cultivation property, which would earn Dona Blanca a 70% working interest (WI) in the economic rights to the output from such greenhouses. Dona Blanca previously earned into stage one of the project, which has now been fully funded. Dona Blanca has now elected to enter into stage two of the project whereby Dona Blanca will invest an additional USD 290,000 by May, 15, 2020 to earn an additional 20% WI or an aggregated 55% WI, or 1.1 net hectares in the aggregate; and stage 3 whereby Dona Blanca will invest an additional USD 193,000 to earn an additional 15% WI or net 1.4 hectares in the aggregate. Joint venture agreement with Dona Blanca: Medcolcanna is to construct an additional 2.0 hectares (215,278 square feet) of greenhouse space at its El Candil farm located in Cota, Colombia. Medcolcanna to provide 2.0 hectares of fully licensed farmland, next to its current three (3) hectare farm at its El Candil location, which will allow Medcolcanna the ability to provide seamless operations and synergies with current operations. This land space is already fully licensed for cultivation and manufacturing, streamlining the path to commercialization. Dona Blanca will fund 100% of capital expenditures, start-up operational costs and administration costs in three phases which if all completed will earn it an aggregate 70% working interest in the newly constructed 2.0 hectares of commercial greenhouse space. Medcolcanna will retain a 30% working interest in the associated economic rights. The first cultivation is expected to begin in two months, with the first harvest in six months and revenue on the additional 2.0 hectares beginning in approximately seven months. These new facilities are conservatively estimated to be capable of producing approximately 1,300,000 grams of CBD/THC oil per year. Dona Blanca has advanced to Medcolcanna a total of USD 517,000 for the full funding of stage 1 of the project and will now advance USD 290,000. In connection with the funding of the JV by Dona Blanca, the Company is paying a finders' fee to an arm's length party called Seacap Consulting SRL consisting of common shares in the capital of the Company equal to 3% of the cash value of the investment by Dona Blanca (being USD 15,000) upon the receipt by the Company of those funds and based on the closing price of the shares on the date funds are advanced.