Item 9 Labs Corp. Announces Strategic Partnership With VIRIDIS Group

Item 9 Labs Corp. Announces Strategic Partnership With VIRIDIS Group

Partnership Includes Investment of $2.7 million to Support Geographic Expansion Plans and
Appointment of Andrew Bowden to Board of Directors

SCOTTSDALE, Arizona, September 14, 2018 – Item 9 Labs Corp. (OTC: INLB) (“Item 9 Labs” or the “Company”), a leading provider of comfortable cannabis health solutions for the modern consumer through the development of innovative products and proprietary delivery platforms, today announced it has entered into a strategic partnership with VIRIDIS Group I9 Capital LLC (“VIRIDIS”), with VIRIDIS making up to a $2.7 million investment in Item 9 Labs.

On September 11, 2018, the Company and Viridis entered into a Loan and Revenue Participation Agreement whereby Viridis agreed to make a secured loan of up to $2.7 million to the Company which is represented by two separate notes, one for the construction and enhancement of the Company’s Arizona property and one for the Company’s proposed ventures in Nevada.   In exchange for the loans, Viridis will be repaid in the form of waterfall revenue participation schedules.  Viridis shall receive 5% of the Company’s gross revenues from each of the Company’s Arizona and Nevada operations, respectively, until the loan is repaid, 2% until repaid 200% of the amount loaned, and 1% of gross revenues in perpetuity or until a change in control.

VIRIDIS, an arm of an Arizona-based investment company owned by members of the Bowden family, specializes in real estate investment and environmentally sustainable development with additional interests in software, health and fitness. Among its activities, VIRIDIS has owned part or all of three shopping centers located in Arizona and Colorado, invested in a software company with their partner, Kinetic Companies, and purchased a rental property in Costa Rica. In May of 2016, VIRIDIS opened DUSK Scottsdale, Arizona’s first net-zero energy multifamily development.

The investment in Item 9 Labs is part of a broader strategic partnership which will allow Item 9 to access VIRIDIS’s expertise in real estate in order to further build out its presence in Arizona and to advance the Company’s planned geographic expansion into new markets, such as Nevada.  Item 9 Labs will use the funds to expand its manufacturing and revenues through the acquisition of land and buildings in Arizona and Nevada, and also intends to use the transaction proceeds for product development and general corporate purposes.

Bryce Skalla, Co-Founder and CEO of Item 9 Labs, commented, “This strategic partnership provides a compelling value proposition for both companies as Item 9 is quickly advancing towards its goal of becoming an industry leader within the Medical Cannabis sector. The investment by VIRIDIS is a meaningful source of capital for our planned geographic expansion outside of Arizona. It also supports the continued development of our enhanced cannabinoid delivery system, representing the industry’s first market medicated nasal delivery device that administers specific cannabinoid dosing. We believe that this strategic relationship will enable us to meet the growing demand of today’s modern cannabis consumer and generate attractive returns for our shareholders.”

As part of the strategic partnership, Andrew Bowden, Co-Founder and CEO of VIRIDIS, has been appointed to Item 9 Labs’ board of directors. Andrew Bowden co-founded Rocky Range Investments, a real estate company centered on buying and remodeling luxury condos in Colorado and Arizona, and VIRIDIS Group, with his father Doug Bowden in January of 2013. As a commercial real estate investor and developer, he spearheaded the first net-zero energy multifamily apartment complex in Arizona as well as the first off-grid multifamily home in the United States. He is also co-owner of a Cross Fit gym in Phoenix, Arizona. Additionally, Andrew is an active member of the Suns Charities 88 young professionals group. Andrew is 31 years old and received his Bachelors degree from South Dakota State University in Brookings, SD where he also worked as a flight instructor where he instructed students anywhere from their Private pilots license to Certified Flight Instructors Certificate.  In his own life Andrew saw first-hand how medical cannabis greatly reduced the side effects his mother experienced as she went through breast cancer treatment.

“We are excited to partner with Item 9 Labs in support of their growth goals,” said Andrew Bowden, Co-Founder and CEO of VIRIDIS Group. “Item 9 Labs is well-positioned to benefit from continued growth in the Cannabis sector due to changing regulations and the growing demand among modern consumers for cannabis health solutions. At VIRIDIS, we pride ourselves on our firm’s forward-thinking and cutting-edge investment strategies and we view our investment in Item 9 as an extremely valuable one, based on the Company’s rapid market penetration and established niche.  We look forward to joining forces with this outstanding team.”

About VIRIDIS Group:

VIRIDIS Group (“VIRIDIS”) is a family-owned Investment Company with experience in real estate investment and environmentally sustainable development as well as software, health and fitness. VIRIDIS prides itself in having an open minded team and a diversified portfolio. An active equity company, VIRIDIS Group provides funding necessary to launch projects and an engaged team that is hands on with each venture on a daily basis.

About Item 9 Labs Corp.:

Item 9 Labs Corp. (OTC: INLB) creates comfortable cannabis health solutions for the modern consumer by developing innovative products and proprietary delivery platforms. The Company is focused on the development of technology and products that administer high-quality medical marijuana through a novel intra-nasal delivery system to deliver significant health benefits. The Company is headquartered in Southern Arizona where it owns and operates 50 acres, one of the largest properties in the U.S. zoned to grow and cultivate the medical marijuana flower. Item 9 has a proven track record of providing consumers with high-quality medical marijuana flower and products focused on organic, cost-effective solutions for whole body health. By combining high-quality, medical-grade product with the Company’s proprietary nasal mucus-membrane delivery system, Item 9 plans to produce the industry’s first market medicated nasal delivery device that administers specific cannabinoid dosing to meet the growing demand of today’s modern cannabis consumer. For more information, visit us online at www.Item9labscorp.com and www.Item9labs.com.

Forward-Looking Statement: This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Media Contact:
Investor Relations:
Jeffrey Rassás
(480)463-4246 or (877)876-4868
Email: jeffrey@airwarelabs.com

Investor Contact:
Jeffrey Rassas
Item 9 Labs Corp.
Jeffrey@item9labs.com
(602)463-4246