U.S. Markets close in 2 hrs 31 mins

CannaGrow Holdings Announces Significant Advances Toward the Initiation of Cannabis Production at the Colorado Buffalo Ranch Facilities

CENTENNIAL, CO--(Marketwired - Mar 23, 2016) - CannaGrow Holdings, Inc. ( OTC PINK : CGRW ) -- Marking the accomplishment of a significant company milestone, CannaGrow Holdings, Inc., a Liaison and Consultant providing turn-key solutions to licensed growers in the legal Cannabis industry, today announced a key update on the Buffalo Ranch Project located in Huerfano County, Colorado.

As confirmed by the CEO of CannaGrow Holdings, Delmar Janovec, NuGro Industries, Inc., the landowner and developer for the Colorado Buffalo Ranch Project, carried through with the first of several purchase orders for major equipment and supplies required for the initiation of Cannabis production at the Colorado Buffalo Ranch Facilities. An order was placed for 70 grow lights through Growers House (www.growershouse.com), followed by the purchase of 80 cubic yards of organic seasoned compost from Innovative Organics (www.innovativeorganics.com). A number of additional purchase orders are being negotiated for immediate execution, including hundreds of grow containers, drip irrigation system components, environmental control systems, and all natural amendments for a soil-based growing medium.

"Now that the Head House building and the first of two Nexus Greenhouses have been erected at Colorado Buffalo Ranch, our electrical subcontractor is moving onto the site for installation of electrical services and production equipment," stated Janovec. "Grow lights have been purchased with enough lead time to assure their prompt installation, testing, and inspection during the coming weeks.

The Colorado Buffalo Ranch Marijuana Cultivation Facility represents an innovative transformation from the traditional "indoor" grow room or warehouse environment to a largely greenhouse-based sunshine-driven high-throughput production system. Janovec confirmed that the 3200-ft2 Head House building provides a state-of-the-art nursery environment for the massive propagation of seeds and vegetative cuttings, as well as a genetic vault where mother and father plants of numerous Cannabis strains will be grown in vegetative state for the perpetual production of vegetative cuttings; additional rooms provide ideal climates for drying and curing harvested product, as well as for staging controlled Cannabis breeding trials. The fully automated 3000-ft2 Nexus Greenhouse provides an optimal light deprivation environment for producing full crops of harvestable product, as well as a staging area for the massive production of hundreds of young plants required to fill the seasonal greenhouses in the early spring months of each year.

"A number of significant benchmarks have been achieved by the company during the last several weeks," explained Dr. John P. Janovec, COO of CannaGrow Holdings. "First, our primary buildings have been erected and we are now engaged full time with our General Contractor and Subcontractors to complete the final installations required for Cannabis production. Second, we are in the final stages of discussions with our preferred licensed grower who should be on site and operational by early June. The grow lighting purchased from Growers House will enable the licensed grower to manage mother plants, seedlings, and clones in vegetative states, as well as provide supplemental lighting required for producing Cannabis plants in the Nexus Greenhouse during the short days of winter."

The recent infrastructure acquisitions and implementations are further evidence of a measured and precisely planned roll-out that demonstrate the strength of the company's core competencies. Integrated with forward-thinking grow strategies such as sunshine-driven production, the CannaGrow Buffalo Ranch project now serves as a showcase for current best practices in the Cannabis industry.

CannaGrow Holdings, Inc., the Liaison and Representative for NuGro Industries, will continue in that capacity, working with the various Contractors and State/County Agencies to see the Multi-Phased project through to an operational status. The completion of this Project will provide CannaGrow the basis to begin generating revenues from the Licensed Grower sub-leasing the Turnkey Growing Facilities being built to the specifications of Dr. Janovec and consultant, Jason Wells.

CannaGrow has received numerous inquiries from perspective tenants and are also exploring additional business ventures within this industry that could further enhance shareholder value. The site plan, grading plan, and phasing plan that were submitted by NuGro Industries, the landowner and developer, can be viewed at the company website at: http://cannagrowholdings.com.

About CannaGrow Holdings, Inc.:
CannaGrow Holdings, Inc. has entered the Medical/Recreational Cannabis Industry as a Lessor, Liaison, and Consultant to licensed Growers providing them with turnkey Growing Facilities in the State of Colorado. The Company intends to expand this business model within this industry as business opportunities evolve whereby providing for the highest return to its shareholders.

CannaGrow Holdings, Inc. does not and will not, until such time as Federal law allows, grow, harvest, distribute or sell marijuana or any substance that violate the laws of the United States of America.

CannaGrow Holdings, Inc. encourages the public to read the above information in conjunction with its year-end statement for December 31, 2014, and the quarterly statements filed in calendar year 2015, at www.otcmarkets.com.

The information contained in this press release may include forward-looking statements. Forward-looking statements usually contain the words "may," "could," "possibly," "feel," "estimate," "anticipate," "believe," "expect," or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its services, competition, limited service facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein.