Gaia Grow TRU Extracts Canadian Cannabis Lab Signs White Label Agreement with Expected Revenue of Up to $ 8,369,000


Vancouver, British Columbia – The press wire – December 21, 2021 – Gaia Grow Corp. (the “Company” or “Gaia”) (CSE: GAIA) (CNSX: GAIA.CN) (Frankfurt: GG0) is delighted to announce that its wholly owned subsidiary, TruExtracts Laboratories (“TRU”), has signed a 12 month white label agreement with an arm’s length Canadian cannabis producer (“the producer” ) to make around 30,000 pre-rolls of cannabis per day. Production is expected to begin at TRU’s Canadian licensed cannabis extraction facility in January 2022. This agreement has the option of being extended in one-year increments beyond this term.

TRU will be responsible for purchasing and processing biomass in accordance with the processing service orders provided by the producer and will deliver final retail products in accordance with coordinated shipping instructions provided by the producer. The entire production cycle will be purchased by the producer for the 12 month period.

The agreement is expected to generate revenues of up to $ 8,369,000 during the initial 12-month period. Assumed sales are based on the production of 30,000 pre-rolls per day which will be packaged in 10 retail packs. For a total of 3,000 10 packs per day with wholesale revenue TRU between around $ 8 for the 10 unlabeled packs to around $ 15 for the 10 labeled and branded packs. Actual incomes will vary depending on final production. The production cost per TRU depends on the commodity price of the dried flowers and labor in the facility.

The producer will coordinate the logistics of the delivery of the retail products and ensure that the retail products comply with the Cannabis Act and all regulations made under it, with all requirements from Health Canada, to any specific provincial or local government requirements, and to the producer’s customer reasonable standards.

“This is a big step forward for TruExtracts and Gaia,” said Frederick Pels, CEO of Gaia Grow. “The pre-roll market share is one of the most important segments of the legalized cannabis market in Canada. It accounts for north of 20% of all products sold in British Columbia and the Prairie provinces with the rest of Canada in their teens. It’s great to see TruExtracts delivering products for this important market with a healthy double digit profit margin. I look forward to educating shareholders as Tru continues to grow and deliver meaningful value to our shareholders. “

“Pre-roll production represents approximately 60% of Tru’s current production space,” said Andre Sinclair, COO of TRU. “This agreement demonstrates the effectiveness of Tru’s business model. As more SKUs are launched and Tru expands our build space, we expect this segment to prudently double in 2022 and see significant future revenue growth for Tru as well as Gaia. ”

About TruExtracts

TruExtracts Laboratories was created for high capacity extraction and production to meet global demand. TRU is one of Western Canada’s largest cannabis and hemp processors, with a 12,500 square foot state-of-the-art facility in Calgary. The facility is licensed by Health Canada and fully operational, with an expansion capacity of one 16,000 additional square feet. Services include toll processing, extractions and isolates of THC, CBD, as well as white label service and THC and CBD cannabis products.

For more information, please visit their website at https://truextractslabs.com

About Gaia Grow

Gaia Grow is a vertically integrated, licensed hemp company based in Alberta with licensed subsidiaries for the processing, extraction, product formulation, new product development and retail of cannabis and hemp. For more information about the company, please visit www.GaiaGrow.com

A link to Gaia’s official YouTube page is available here: www.youtube.com/channel/UC7tbvsY5gl2CrlsESYkbbgw

Please join the conversation about our GAIA Group Telegram Group at https://t.me/gaiagrow and visit us online at www.gaiagrow.com

For more information, please contact:

Frederick Pels, President and CEO

(403) -991-7737

[email protected]

The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY AND FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, ” »Expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “could”, “should”, “believe”, “would” and similar expressions.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of the management of the Company for the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Because forward-looking statements and information deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, risks associated with the hemp industry in general, such as operational risks related to cultivation; competetion; poor assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including, but not limited to, tax laws and government regulations. Therefore, readers should not place undue reliance on the forward-looking statements, timetables and information contained in this press release.



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