Canex Energy Corp. ("Canex") (NEX Board:CSC.H entered into a non-binding letter of intent to acquire Island Green Cure Ltd. and Medi-Can Health Solutions Inc. from Choom Holdings Inc. (“Choom”) (CNSX:CHOO) on December 31, 2018. The purchase consideration comprises CAD 0.1 million in cash and a number of shares representing 9.8% of the fully diluted, pro forma, outstanding shares of Canex on closing.

In connection with the transaction, the previously announced private placement on October 12, 2018 has been revised, and Canex now intends to sell between 5 million to 10 million units for gross proceeds of up to CAD 1 million subject to approval of the NEX Board of the TSX Venture Exchange. To facilitate the transaction between Canex and Choom, Imre Kovacs was appointed as a special advisor to Canex.