Global Cannabis Applications Corp. announced the signing of a Letter of Intent (LOI) to form a Joint Venture (JV) with COMSOL PPV Telecom ("Comsol") to open an online portal focused on providing Canadian veterans with Efixii cultivated cannabis products. New Brunswick-based Sana'a Cannabis will be the lead cultivator to provide best-in-class cannabis to veterans grown on the Efixii blockchain.

This marks the first use of Efixii in the Canadian medical market by a major cultivator. GCAC and Comsol will incorporate and operate the new entity in New Brunswick to service the $117million Canadian veteran market. GCAC will transfer its non-possession medical cannabis license and hold a 49% share, Comsol 51% of the joint venture.

GCAC will configure a veteran- specific version of Efixii and integrate it into the digital storefront provided by Comsol, and provide online training, sales & marketing support. Comsol will operate the digital storefront and product fulfilment will be through Sana'a. In addition to its own products being cultivated using Efixii for both the Canadian veteran and adult markets, Sana'a will provide guidance and management support in the selection of other cannabis producers wishing to sell on the veteran storefront. All 3rd party cannabis producers must license Efxii software to be eligible to sell on the storefront.

GCAC will earn a license fee for each gram of cannabis sold by the JV. The JV will earn $8.50 per gram for the veteran's market as per Veterans Affairs' policies. Currently, 15,000 Canadian veterans are using licensed medical cannabis.

GCAC and Comsol will settle the terms of the Definitive Agreement no later than July 30, 2022, following receipt of all necessary regulatory, corporate, and third-party approvals, including the approval of the Exchange, and compliance with all applicable regulatory requirements and conditions, including execution of the License and the Sales and Distribution Agreement.