Oregon: Marijuana Company of America and Global Hemp Group announce acquisition of 109 acres for hemp CBD production

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Marijuana Company of America Inc. is pleased to announce that the Company, in partnership with Global Hemp Group Inc. has acquired a 109-acre agricultural property in Scio, Oregon (the "Property") for the cultivation of high CBD yielding hemp for the upcoming 2018 growing season.

This particular property was chosen as it has a history of hemp cultivation over the last two growing seasons and contains a high level of organic matter in the soil, which makes it ideal for hemp cultivation. In addition, the property has appropriate irrigation infrastructure that includes sufficient authorized water rights to allow for irrigated cultivation, which is expected to greatly enhance yields of the proposed high CBD hemp cultivars that the partners are planning to grow on the property.

The property, located in the fertile Willamette Valley approximately 70 miles south of Portland, Oregon, was acquired for US$1.1 million. The terms of the acquisition include a cash down payment of US$130,000 and the issuance of 2,100,000 common shares in the share capital of GHG valued at US$275,000, to be delivered within 15 days of closing.

The partners are each contributing one half of the cash consideration for the down payment purposes, or the amount of US$65,000. MCOA is also contributing a cash payment equal to one-half of the value of GHG's stock consideration, or the amount of US$137,500, that will be paid from the expected profits to be produced from the project during the first year of operations.

The GHG common shares to be issued pursuant to the Acquisition Agreement are considered to be issued on a private placement basis, according to the CSE Policy 6. Such common shares are subject to a customary one (1) year hold period pursuant to the provisions of Rule 144 of the Securities Act of 1933.

The balance, the amount of US$695,000, is a promissory note ("the Note") issued to the current owner, which matures on May 1, 2021. Interest on the Note is set at 4.0% per annum, adjustable on the first day of October each year, based on the closing interest rate of the Ten-Year U.S. Treasury Note on September 30th plus 1.15%. The Note calls for monthly payments of US$7,036.54 beginning as of June 1, 2018, and a final payment of the remaining balance on May 1, 2021.

The partners have been exploring hemp cultivation and cannabinoid extraction opportunities in the U.S. Pacific Northwest for more than a year. The State of Oregon was chosen for this project due to climate considerations, the current regulatory environment in the State and availability of local experienced personnel.

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