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Discover Wellness Solutions Announces Year End Results for 2020

Calgary, Alberta, March 18, 2021 – Discover Wellness Solutions Inc. (formerly RMMI Corp.) (“Discover Wellness” or the “Company”) (CSE: WLNS), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce the filing of its financial results for the twelve-month period ending December 31, 2020. For more information, please see the consolidated financial statements of the Company for the year ended December 31, 2020 and the related management’s discussion and analysis, which are available electronically on SEDAR under Discover Wellness’ issuer profile at  www.sedar.com.

“The year 2020 was a transformational year for the Company in-terms of a shift away from capital intensive cultivation business model to a flat structure extraction and processing facility. Additionally, we recapitalised, are being prudent with our cash outlay, completed a transaction with SynerGenetics Bioscience Inc. (“SG”) on the procurement side and signed an MOU with Quad Play of Thailand on the global distribution side.” commented Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer.

Highlights – Fiscal Year Ended December 31, 2020

  • In June 2020 the Company made a strategic shift towards hemp and production of high quality and high purity CBD products. Essentially, the Company undertook a strategic shift in its business model away from capital intensive cannabis cultivation to focus on processing and extraction of hemp biomass into CBD concentrates.
  • In October 2020, the Company entered into strategic alliance and hemp purchase agreement with SG, a leading plant genetics technology company that develops novel hemp strains with high-CBD content and other hemp-derived cannabinoid cultivars.
  • In December 2020, the Company closed a $2.7 Million Private Placement at $0.20/ share to progress the buildout of the expansion area in the Company’s 23,400 square foot extraction and processing facility and for general corporate and working capital purposes.
  • Near the end of the year SG delivered 550,000 lbs of hemp which resulted in working capital savings of over $5MM.
  • The shareholders approved the name change to Discover Wellness Solutions Inc. to better reflect the Company’s focus on the non psychoactive space.

Subsequent events

  • In February 2021 the Company received a license to sell Industrial Hemp which significantly reduces regulatory overheads and fits well with the cost leadership strategy.
  • In March 2021, signed an MOU with Quad Play to enter Thailand’s deregulating hemp extract market. This business relationship serves as a beachhead for Discover Wellness to gain access to the Asian hemp-infused market which is expected to grow to over $5.8 billion by 2024.
  • Discover Wellness’ initial contribution secures a toehold equity stake of 4% in Quad Play with the option to acquire control of QP once regulations in Thailand allows for control by foreign companies.

Other updates

Discover Wellness has granted 100,000 stock options with an exercise price of $0.49 and 50,000 Restricted Share Units to a Company director.

The Board of Directors has extended the expiry date of 1,874,000 warrants with an exercise price of $1.25, issued in late 2017 and early 2018. The expiry date of the warrants has been extended from June 30, 2021 to June 30, 2022.  The exercise price of $1.25 per warrant and all other terms of the warrants will remain unchanged for the extended exercise period. No action is required by warrant holders as a result of the extension of the warrant expiry date.  A warrant holder who wishes to exercise warrants will be required to submit a warrant exercise form to the Company.

Discover Wellness Solutions Inc.

Discover Wellness (formerly RMMI Corp.) is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company’s vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.

More information about WLNS is available online at https://discoverwellness.solutions/

Contact Information:
Manish Grigo, Chief Strategy Officer
mgrigo@discoverwellnesssolutions.ca
416-569-3292

Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
ir@discoverwellnesssolutions.ca

Terry Uppal
+1-888-228-5128

Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“). By their nature, forward-looking statements  are  subject  to  numerous  risks  and  uncertainties,  some  of  which  are  beyond  the  Company’s  control, including the impact of general economic conditions, industry conditions, volatility of commodity prices,  currency  fluctuations,  environmental  risks,  operational  risks,  competition  from  other  industry  participants, stock market volatility, and  the  ability  to  access  sufficient  capital  from  internal  and  external  sources.  Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate.  Those factors and assumptions are based upon currently available information.  Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com.  Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.  The forward-looking   statements   contained   in   this   document   are   expressly   qualified   by   this   cautionary   statement.  Trading in the securities of WLNS should be considered highly speculative.

— Discovery Wellness Solutions (ticker – WLNS:CSE)

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Eason Chen is a chartered professional accountant with over 15 years of experience in corporate governance, corporate finance, financial reporting, Canadian and cross-border listings. He previously held senior managerial position at Ernst & Young LLP, MNP LLP and numbers of public listed companies. He is currently a CFO of a public listed company on the Canadian Securities Exchange and the chairman of audit committee of a public listed company on London Stock Exchange.

Eason Chen, CPA, CA

Eugene is a partner at Shea Nerland LLP, with over 20 years experience as a securities, corporate finance and mergers & acquisitions lawyer. He acts for and is a trusted advisor to emerging and growth-oriented companies on corporate finance, securities and mergers & acquisition matters. Eugene has provided extensive advice on initial public offerings, private placements, take-over bids, stock exchange listings, shareholder and proxy related matters, securities reporting, regulatory compliance and mergers & acquisitions.

EUGENE CHEN, B.SC., LLB

Dave is a senior financial executive with over 35 years of experience. His career includes leadership roles in financial reporting, capital markets and risk management in public and private companies in Canada, the US and internationally. Mr. Guebert is a CPA, CA (Alberta), and has his CPA designation in Pennsylvania. He has served as CFO of a number of public and private enterprises and is a longstanding director of Merus Labs, a specialty bio-pharmacy company listed on the TSX and NASDAQ exchanges. Dave is also a director of Legend Power Systems listed on the TSX-V.

DAVE GUEBERT, CPA, CA

Tony is an expert in the health and benefits insurance industry. With over 25 years of experience, Tony brings a unique perspective to the Discover Wellness Solutions Board of Directors. Tony is the founder and President of Fairfield, Watson & Lewis Inc., one of the largest independent employee benefit consulting firms in Western Canada; the President of FWC Benefits Inc., a health and dental claims payment company; and President of Benefit Evolution Advisory, a recently-acquired, Edmonton-based employee benefits consulting firm.

TONY FAIRFIELD

Surinder is a talented plant scientist and researcher with over 10 years of experience. He manages the scientific, research and technological operations of Discover Wellness Solutions. Surinder received his Ph.D. from McGill University and has served as a plant scientist at the University of Saskatchewan. He has received numerous awards, a patent on a brewing-process, and is widely recognized in the field of plant molecular biology and biochemistry. He is experienced in the study and practical application of cannabis cultivation and cannabis oil extraction.

DR. SURINDER SINGH, B.SC., M.S., PH.D.

Chief Scientist

Manish has over 12 years experience in the capital markets. Over ten years as an Equity Research Analyst with various boutique investment banking firms in Toronto; where he covered a wide range of sectors ranging from Technology, Gaming, FinTech and Telcos. He also spent a year with a gold mining company as their Investor Relations and Corporate Development Director. Manish has an MBA in Finance from Cardiff University and B.Com (honors) from Delhi University. He has also completed his CFA.

MANISH GRIGO

Chief Strategy Officer

Sunny has nearly a decade of experience in quality assurance and regulatory management in the international pharmaceutical products industry. Sunny received his Master of Pharmacy in 2008 and served as a research scientist for a number of years.

SUNNY DABAS, B.PHARM., M. PHARM.

QUALITY ASSURANCE MANAGER

Peter is a senior financial professional who brings over 20 years and over 40 billion dollars worth of experience to Discover Wellness Solutions in accounting, treasury, corporate finance, mergers and acquisitions, strategic planning, governance, operations and investment banking. Peter was most recently CFO and Corporate Secretary of Ceiba Energy Services Inc. (TSX-V) and the VP Finance and CFO of Petrobank Energy & Resources Ltd (TSX). Peter is passionate about his community and has served on a number of for-profit and not-for-profit Boards.

PETER CHEUNG - CPA, CA

INTERIM CEO AND CFO

Peter is a senior financial professional who brings over 20 years and over 40 billion dollars worth of experience to Discover Wellness Solutions in accounting, treasury, corporate finance, mergers and acquisitions, strategic planning, governance, operations and investment banking. Peter was most recently CFO and Corporate Secretary of Ceiba Energy Services Inc. (TSX-V) and the VP Finance and CFO of Petrobank Energy & Resources Ltd (TSX). Peter is passionate about his community and has served on a number of for-profit and not-for-profit Boards.

Mike Stuart

Head of Sales , Intel