The next to go?Canutra Naturals Ltd. Pursuant to the terms of an executed asset purchase and sale agreement between Organic Flower and the Company, the Company now owns 100% of Canutra Naturals Ltd. (“Canutra”). Canutra manufactures and distributes premium personal care, cosmetics and cannabinoid-infused product lines including a suite of trusted consumer brands such as Whole Hemp Health; a Canadian all-natural, hand-made skin care line, formulated with 100-per-cent-Canadian organic hemp seed oil. Canutra markets its Whole Hemp Health products by way of brick-and-mortar retail outlets, Amazon Prime, as well as direct to consumer, through an integrated Shopify e-commerce platform. Canutra owns and operates 76 acres of unzoned, arid agricultural land, including 1,000 feet of river frontage in New Brunswick. The New Brunswick campus, formerly a federally owned farm and research facility, boasts over 17,500 square feet of commercial-grade production facilities, as well as 12 separate free-standing structures. This acquisition equips the Company with robust cultivation, extraction, manufacturing and distribution capabilities from the company’s New Brunswick facility. In September 2019, Canutra has been awarded a cannabis research license (the “Research License”) by Health Canada under the Cannabis Regulations Act. The Research License permits Canutra to pursue the development of proprietary cannabis genetics and phenotypes. AGRAFLORA ORGANICS INTERNATIONAL INC. Management’s Discussion and Analysis (Expressed in Canadian Dollars) 8 OVERALL PERFORMANCE (CONTINUED) Canutra Naturals Ltd. (Continued) Canutra continues to demonstrate its leadership with regards to cannabis-derived CPGs, due to its Health Canada awarded Research License and continued collaboration with UM. The company also continues to achieve material advancements throughout its IP development and aggregation initiatives, including: • High CBD hemp cultivation techniques; • Advanced extraction methodologies; • Cultivar development; • Inoculation formulations; and • Proprietary cannabinoid profiles for future skin care product lines. The Company received a purchase order from Tobmar Newstands (“TN”) for its Whole Hemp Health organic lip balm SKU. TN’s purchase order and subsequent listing of a secondary SKU secures additional high visibility Canadian shelf space for the Company’s expanding line of organic cannabis sativa seed oil infused consumer packaged goods (“CPGs”). During the year ended December 31, 2020, Canutra sold its land with a cost of $373,700 for total proceeds of $682,372 and record a gain on sale of $308,672. The Company entered into a promissory note of $275,000 with the purchaser relating to the sale.