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/THIS PRESS RELEASE IS NOT FOR PUBLICATION OR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW./

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VANCOUVER, Oct. 17, 2018 /CNW/ – Metropolitan Energy Corp. (TSXV: MOE.H) (“Metropolitan” or the “Company”), is admiring to advertise that, added to its advertisement on July 5, 2015, it has entered into a absolute business accumulated acceding (the “Definitive Agreement”) anachronous October 17, 2018 to access all of issued and outstanding balance of Bertram Basic Finance, Inc. (“Cannabis One”), which operates beneath the business name of Cannabis One. Cannabis One is a U.S.-based, able administration association formed to account the fast-growing, acknowledged cannabis industry through absolute acreage development and lease-back accessories financing, operating curve of credit, consultation, and bookish acreage and cast administration aural U.S. state-legal markets. Cannabis One, headquartered in Denver, Colorado, intends to redefine the traditional, vertically-integrated, seed-to-sale business archetypal with a specific focus on accumulation cannabis retail administration and cast manufacturing.

TERMS OF THE TRANSACTION

Under the agreement of the Absolute Agreement, Metropolitan will acquire, alongside through its wholly endemic accessory congenital in Colorado (“AcquireCo”), all of the issued and outstanding disinterestedness balance of Cannabis One in barter for anew created Chic A subordinated voting shares (“Subordinated Voting Shares”) and Chic B cool voting shares (“Super Voting Shares”), as applicable, of Metropolitan pursuant to a alliance of Cannabis One and AcquireCo, the aftereffect of which will accumulated a about-face takeover of the Aggregation by the shareholders of Cannabis One (the “Proposed Transaction”). Following the Proposed Transaction, Metropolitan will accept cannabis operations aural a cardinal of State-legal markets throughout the U.S. and will absorb manufacturing, distribution, and licensing agreements with State-licensed cannabis companies.

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Pursuant to the agreement of the Absolute Agreement, the Aggregation will seek to delist from the NEX lath of the TSX Venture Barter (the “NEX”) and intends to administer for advertisement of the Subordinated Voting Shares on the Canadian Balance Barter (the “CSE”), with such advertisement to be able circumstantial with the closing of the Proposed Transaction. Having already accustomed the all-important approvals from both the shareholders of the Aggregation and Cannabis One, the closing of the Proposed Transaction (the “Closing”) charcoal accountable to accepted altitude for a transaction of this nature, which includes approval from the TSX Venture Barter for autonomous delisting of the Company’s accepted shares, from the CSE for the advertisement of the Subordinated Voting Shares and any added authoritative approvals.

In affiliation with the Proposed Transaction, the Aggregation will be appropriate to, amid added things: (i) change its name to Cannabis One Holdings Inc., or such added name as is agreed to by the lath of admiral of Metropolitan and adequate to authoritative authorities; (ii) alter all admiral and admiral of the Aggregation (other than Christopher Fenn) on closing of the Proposed Transaction with nominees of Cannabis One; (iii) redesignate the accepted shares of the Aggregation as Subordinated Voting Shares; and (iv) actualize a new chic of Cool Voting Shares.

Further capacity of the Proposed Transaction are accessible in the advice annular of the Aggregation anachronous September 11, 2018 and added decidedly declared in the Absolute Acceding which are filed on the Company’s SEDAR contour at www.sedar.com, and will be included in consecutive account releases and acknowledgment abstracts (which will accommodate business and banking advice in account of Cannabis One) to be filed by the Aggregation in affiliation with the Proposed Transaction. It is advancing that the closing of the Proposed Transaction will booty abode above-mentioned to the end of 2018. It is advised that the accepted shares of the Aggregation will abide apoplectic until the Proposed Transaction closes or the Absolute Acceding is terminated.

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UPDATE TO PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT

In affiliation with the beheading of the letter of absorbed on July 5, 2018 (the “LOI”), the Aggregation and Cannabis One bent that the clandestine adjustment declared in the columnist absolution anachronous July 5, 2018 (the “Private Placement”) be structured as an alms of cable receipts in the basic of Cannabis One (“Subscription Receipts”) and be upsized to up to CAD$8,000,000.  Pursuant to the agreement of the Cable Receipts, the Cable Receipts are automatically adapted into one allotment in the accepted banal of Cannabis One (a “Cannabis One Share”) and one-half of one (½) Cannabis One Allotment acquirement accreditation (a “Cannabis One Warrant”) aloft beheading of the Absolute Agreement. 

As of the date hereof, Cannabis One has bankrupt on Cable Receipts and issued instructions for the allotment of the basal Cannabis One Shares and Cannabis One Warrants apery accumulated gross gain of about CAD$6,900,000. Cannabis One anticipates that an added tranche of Cable Receipts shall be awash beneath the Clandestine Adjustment for added gross gain of up to CAD$977,693.  Cannabis One intends to use the net gain of the Clandestine Adjustment for accepted alive capital.

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Forward-Looking Advice & Statements

Completion of the Proposed Transaction is accountable to a cardinal of conditions, including TSXV, CSE and added authoritative accepting and as added decidedly declared in the Absolute Agreement. There can be no affirmation that the Proposed Transaction will be completed as proposed or at all. Investors are cautioned that, any advice appear or accustomed with account to the Proposed Transaction may not be authentic or complete and should not be relied upon. Trading in the balance of the Aggregation should be advised awful speculative.

The TSX Venture Barter (the “TSXV”) nor its Regulation Services Provider (as such appellation is authentic in behavior of the TSXV) has in no way anesthetized aloft the claim of the Proposed Transaction and has neither accustomed nor banned the capacity of this columnist release.

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All advice absolute in this account absolution with account to Cannabis One was supplied by Cannabis One for admittance herein and the Aggregation has relied on the accurateness of such advice after absolute verification.

Certain statements absolute in this columnist absolution accumulated advanced information. These statements chronicle to approaching contest or approaching performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and agnate expressions and statements apropos to affairs that are not absolute facts are advised to analyze advanced advice and are based on the parties’ accepted acceptance or assumptions as to the aftereffect and timing of such approaching events. Absolute approaching after-effects may alter materially. In particular, this absolution contains advanced advice apropos to the advice apropos the Proposed Transaction and the Clandestine Placement, expectations apropos whether the Proposed Transaction will be consummated, including whether altitude to the cleanup of the Proposed Transaction will be satisfied, expectations for the furnishings of the Proposed Transaction or the adeptness of the accumulated aggregation to auspiciously accomplish business objectives, expectations apropos whether an added tranche of the Clandestine Adjustment will be consummated, and expectations for added economic, business, and/or aggressive factors. Various assumptions or factors are about activated in cartoon abstracts or authoritative the forecasts or projections set out in advanced information. Those assumptions and factors are based on advice currently accessible to the parties. The absolute factors and assumptions accommodate the parties actuality able to access the all-important corporate, authoritative and added third parties approvals and achievement of satisfactory due diligence. Amid the key factors that could account absolute after-effects to alter materially from those projected in the advanced advice and statements are the following: the adeptness to able the Proposed Transaction and the added tranche of the Clandestine Placement; the adeptness to access requisite authoritative and securityholder approvals and the achievement of added altitude to the cleanup of the Proposed Transaction on the proposed agreement and schedule; the abeyant appulse of the advertisement or cleanup of the Proposed Transaction on relationships, including with authoritative bodies, employees, suppliers, barter and competitors; changes in accepted economic, business and political conditions, including changes in the banking markets; changes in applicative laws; acquiescence with all-encompassing government regulation; and the aberration of administration time on the Proposed Transaction and the Clandestine Placement. The advanced advice absolute in this absolution is fabricated as of the date hereof and the parties are not answerable to amend or alter any advanced information, whether as a aftereffect of new information, approaching contest or otherwise, except as appropriate by applicative balance laws. Because of the risks, uncertainties and assumptions absolute herein, investors should not abode disproportionate assurance on advanced attractive information. The above statements especially authorize any advanced advice absolute herein.

This columnist absolution does not accumulated an action to advertise or a address of an action to buy any of the balance in the United States. The balance accept not been and will not be registered beneath the United States Balance Act of 1933, as adapted (the “U.S. Balance Act”) or any State balance laws and may not be offered or awash aural the United States or to U.S. Persons unless registered beneath the U.S. Balance Act and applicative State balance laws or an absolution from such allotment is available. Not for administration to U.S. Newswire Services or for broadcasting in the United States. Any abortion to accede with this brake may accumulated a abuse of U.S. balance laws.

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Unlike in Canada which has Federal legislation analogously administering the cultivation, distribution, auction and control of medical cannabis beneath the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is abundantly adapted at the State level. To the Company’s knowledge, there are to date a absolute of 29 states, additional the District of Columbia, that accept legalized cannabis in some form. Notwithstanding the acquiescent authoritative ambiance of medical cannabis at the State level, cannabis continues to be categorized as a controlled actuality beneath the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including after limitation, the manufacture, importation, possession, use or administration of cannabis are actionable beneath U.S. Federal law. Strict acquiescence with State laws with account to cannabis will neither acquit the Aggregation of accountability beneath the U.S. Federal law, nor will it accommodate a aegis to any Federal proceeding, which may be brought adjoin the Company. Any such affairs brought adjoin the Aggregation may abnormally affect the Company’s operations and banking performance.

SOURCE Metropolitan Energy Corp.

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