NOTE 8 – SEED INVENTORY

During the three months ended March 31, 2019, MariMed Hemp Inc. (“Mari-Hemp”), the Company’s wholly-owned subsidiary operating in the emerging global hemp market, purchased $3.25 million of hemp seeds meeting the U.S. government’s definition of federally legal industrial hemp, which was descheduled as a controlled substance and classified as an agricultural commodity upon the signing of the 2018 Farm Bill. Mari-Hemp intends to use the seeds to conduct a wholesale hemp distribution business and to develop a hemp-derived CBD product line.