May 4th, 2018 – Vancouver, British Columbia – Tabu Equity Investments Inc. (the “Company”) The Company confirms that it is considering making an approach to REALM

DISPENSARIES of Alberta regarding a possible offer for the company. The Company’s consideration of such an offer is at a preliminary and exploratory stage and no approach has been made to the Board of REALM DISPENSARIES. There can be no certainty that an approach, if made, will lead to any transaction.

The Company continuously considers various options aiming to accelerate its growth, focusing on prioritized areas of growing, research and medicinal product development.

The Company believes that a potential transaction with REALM presents an opportunity to advance the Company’s stated vision, build on its current momentum, and create a value-based cannabis product development and sales leader. In particular, a transaction with REALM would:

  • strengthen the Company’s distribution channels in Alberta
  • accelerate the Company’s vision to be a leader in specialized cannabis products that are
  • transformative to patients through the addition of REALM’s research and market share
  • further enhance the Company’s sales strategy, concentrating on key new product areas
  • reinforce a strong and large product pipeline within the Company’s core areas
  • balance The Company’s geographic focus to align with the market opportunity across Canada.
  • drive financial value from a strong combined financial profile

Clearly defined strategic and financial objectives are core to the Company’s disciplined approach to acquisitions. Any potential offer for REALM, if made, would have to align with this strict investment criteria. This transaction would be subject to all regulatory rules and regulations. A further announcement will be made as appropriate. Tabu Equity Investments will, by no later than 5.00 p.m. (Vancouver time) on 30 May 2018, either announce a firm intention to make an offer, subject to conditions or pre-conditions if relevant, for REALM in accordance with all rules and regulations, or announce that it does not intend to make an offer for REALM . This deadline will only be extended with the consent of all parties.

RealM will have “first mover advantage” in Edmonton; and create superior shareholder value by

exercising the very best in strategic, integrated concepts and implementation. They will approach every marketing challenge with on-target strategies that result in innovative and effective sales solutions. Whether it’s increasing market share, creating or altering perceptions of a brand, or even reinventing a product category; RealM marketing initiatives will break barriers and most importantly, motivate consumers to buy.

Upon legalization RealM expects to serve a minimum of 150 customers per day/location with an

average spend of $45. This equates to average yearly sales of $1250 per square foot of retail

space. Management projects this number increasing to $1500 per square foot; with sales revenues exceeding $3M per location by 2020; or once sales of edible and concentrated cannabis products are permitted, most likely within 12-18 months of legalization. Initial sales will be focused on marijuana flower products, hard and soft goods. The company has plans to start with 6 locations in Alberta and is currently leasing new space.

IMPORTANT NOTICE

This announcement is not intended to, and does not, constitute, represent or form part of any offer, invitation or solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER ANY CANADIAN RULES REGARDING TAKEOVERS AND MERGERS. THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE, OR AS TO THE TERMS ON WHICH ANY OFFER WILL BE MADE.

Tabu Equity Investments Inc. invests in Canadian ACMPR applicants and licensed United States cannabis technology companies, as well as Canadian based support technologies for the cannabis industry. The company website can be found at: www.tabu.co

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Tabu’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should, aware” and similar expressions, are forward-looking statements. Forward-looking statements may include, without limitation, statements including statements related to Tabu’s transactions and business related to cannabis and future news releases. Although Tabu has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; and regulatory or political change.