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REPEAT - Canabo Medical Inc. Closes $8.4 Million Equity Financing

VANCOUVER, BC--(Marketwired - December 23, 2016) - Canabo Medical Inc. (TSX VENTURE: CMM) ("Canabo" or the "Company"), further to the Company's press release dated December 7, 2016, has closed its brokered private placement with Aphria Inc. (TSX VENTURE: APH) (APHQF) ("Aphria") of 6,000,000 common shares (the "Shares") at a price of $1.40 per share, to raise gross proceeds of $8,400,000 (the "Offering"). After giving effect to the Offering, Aphria will own approximately 16.6% of the total issued and outstanding common shares of the Company (on an undiluted basis).

The Company entered into an agreement with Haywood Securities Inc., as lead agent, PowerOne Capital Markets Limited, Clarus Securities Inc., (collectively, the "Agents") and paid a cash commission to the Agents equal to 5% of the gross proceeds raised. The Agents have also been granted an over-allotment option to sell up to an additional 900,000 common shares at $1.40 per share. This option may be exercised at any time, in whole or in part, until January 21, 2017. The Delavaco Group also acted as a Strategic Advisor.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All of the securities issued pursuant to this Offering will have a hold period expiring April 23, 2017.

Dr. Neil Smith, Executive Chairman of Canabo stated, "Aphria is a producer that aligns well with Canabo. We are both...