CanX CBD Processing Corp Shareholder Update Q4 2019

December 16, 2019

Dear Shareholder,

As we enter the Holiday Season, we are pleased to report that CanX has completed the facility upgrades to EUGMP/ HACCP standards (European Union Good Manufacturing Practices/ Hazard Analysis and Critical Control Points) and are currently commencing the commissioning of our extraction equipment.

In the past several weeks and months, we have been busy obtaining all government approvals and establishing relationships with the local authorities, from DIICOT (DEA equivalent) to the Ministry of Health and Agriculture.

We have completed our EUGMP plan, integrated all our equipment manufacturers SOPs and obtained all ancillary licenses to commence production of our CBD products in January of 2020.

To date we have received the following authorizations:

- Public Sanitary Department
- Emergency Situations Inspectorate
- Geotechnical Inspectorate
- Environmental Permit
- All utilities such as gas, electricity, water specific to our activity

On the personnel front, CanX is constantly expanding its team and we are pleased to announce that we have hired a PhD in organic chemistry, Dr. Gabriel Mengheres, a graduate of the University of Huddersfield (U.K.). His dissertation concerned the development of anti-inflammatory medication for treating patients with neurodegenerative diseases. This will be extremely useful on our product development and formulations front.

In addition, we hired an experienced Chemical Engineer, Ms. Radu Madalina who is currently working on her dissertation for her PhD in Bioethanol refinement, a valuable product that can be created from our biomass post-extraction. She has been working at one of the largest Romanian medication producers, ANTIBIOTICE, where she received a GMP auditor certification. She also has experience working with chemistry related equipment for extraction and with laboratory testing equipment.

We successfully conducted our facility risk assessment which has been submitted to DIICOT (drug enforcement) and the municipal police. During the risk assessment, we provided the consulting firm that prepared the submission with insights on the Canadian security measures in the Canadian Cannabis industry as required by the Canadian Cannabis Act. We further leveraged our past Canadian experience with the transition from the MMAR to ACMPR within the Cannabis Act, and as a result we have been formally invited to assist in drafting the legalization of Medicinal Cannabis in Romania, known as the Victoria Project.

All extraction equipment has now been delivered to our custom-designed, 33,000 sq. ft. extraction facility located in Miroslava. Everything is prepared for the engineers arrival in early January to install and commission the extraction equipment, with completion scheduled for mid-January. Approximately 100 tonnes of extraction-ready flower is in storage, waiting to be extracted!

Last but not least, we are excited to announce that our auditor, Baker Tilly, completed our biomass inventory count and is currently preparing the audit for our first year of operations with a December 31 year end. Our attorneys, Gowlings WLG, are currently preparing the prospectus for our IPO and CSE listing in Q1 of 2020. In preparation for this event, we have converted all issued and outstanding special warrants into common shares. You will be contacted by email and if, for example, you wish to re-register your shares in the name of your bank or broker in trust, now would be a convenient time to do so.

Prior to our IPO, we will be conducting a small financing of CAN $650,000 at $0.60 and would like to offer our existing shareholders the option to participate. Use of proceeds will be for general working capital, legal & compliance for our IPO and some additional improvements to our facility in Miroslava. If you are interested, please send me an email before the end of the week.

On behalf of everyone at CanX, I also want to take this opportunity to wish you all a Happy Holiday season. As always, we appreciate the support received from our shareholders. Should you have any questions please don’t hesitate to reach out via email at hello@cbdprocessingcorp.com or via telephone at +1 778-896-7445.

Sincerely

Philipp Fuhrmann