Mr. Johan Grandin reports

ESI Environmental Sensors Inc.'s board of directors voted on June 22, 2017, to consolidate the share capital of the company on the basis of 10 common shares for one new share of the company. The company currently has 203,467,500 common shares outstanding and will have 20,346,750 common shares outstanding after consolidation effective Aug. 8, 2017. The board of directors anticipates the consolidation will further assist the company to obtain additional financing.