Dr. Lui Franciosi reports

VERITAS PHARMA PROVIDES CORPORATE UPDATE ON Q1 2018

Veritas Pharma Inc. has provided an official corporate update on its achievements, related scientific activities and growth strategies for the first quarter of fiscal 2018.

New laboratory space

The company is presently looking at prospective office and research lab space on the campus of the University of British Columbia (UBC) with the aim of expanding its operations in Q3 of this year.

Product pipeline and human trials

In January, 2018, Veritas's subsidiary, Cannevert Therapeutics Ltd. (CTL), signed a clinical research agreement with Puerto Rico's Fundacion de Investigacion (FDI) to perform human trials of its lead cannabis strain, CTL-X, for targeting pain management. Since then, FDI has prepared submissions as well as made formal presentations about the proposed study design to local regulatory authorities. It is anticipated that approvals for the conduct of this study will come at the end of Q1 2018 with its immediate start in Q2 2018. The Institute for Medical Cannabis Corp. (IMC) of Puerto Rico is still on track to provide CTL with the necessary placebo and specific cannabis strain for the upcoming human studies at FDI.

Health Canada dealer licence

In December, 2017, Veritas announced that Health Canada had issued its subsidiary CTL a dealer licence (No. 2018/6970) under Health Canada's Section 9.2 of the Narcotic Control Regulations (NCR). This will allow CTL to possess, produce, analyze, sell, send, transport and deliver cannabis, hemp and related products, and to be a commercial service provider of chemistry and biological testing services for licensed producers under Health Canada guidelines. Since then, Cannevert has been working to obtain more diverse cannabis strains from various parts of the world to investigate their therapeutic potential. The dealer licence allows CTL to greatly accelerate its research and development and expand access to various cannabis strains with potentially therapeutic capacity.

Cannevert Therapeutics cancer research project

In November, 2017, the company announced that its research arm CTL had initiated a cancer research project with Dr. Dmitri Petchkovski of Fibroblast Consulting in Vancouver, to assess the effects of several human cancer cell lines against select cannabis strains, along with standard clinical chemotherapeutic drugs for comparison. Dr. Petchkovski will specifically investigate lung, prostate, colon, breast and melanoma cancer cell lines.

Sechelt Organic ACMPR (Access to Cannabis for Medical Purposes Regulations) application

Veritas's subsidiary, Sechelt Organic Marijuana Corp. (SOM), currently owns a secure commercial facility and land located in Sechelt, B.C., Canada. Since July 4, 2014, SOM has had an application with Health Canada to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations (ACMPR). To date, SOM has moved into the fifth (application review) of the seven stages of the application process and, subject to clearing this stage, is awaiting prelicence inspection and licensing.

Completion of Cannevert Therapeutics Ltd. acquisition

From inception of Veritas Pharma, CTL was established as the exclusive research arm of Veritas through an 80-per-cent acquisition of CTL. Veritas Pharma recently signed an agreement with Davidson & Company LLP to assist in providing the company with a fairness opinion on the potential value of taking over the remaining 20 per cent of CTL. Davidson will provide its opinion on whether that value is fair based on the skill sets of the Cannevert team, their scientific and clinical accomplishments, including the acquisition of a Health Canada dealer licence, and the current state of the medical cannabis industry. Davidson's final report is scheduled to be delivered to Veritas by Feb. 28, 2018.

The company also announces the issuance of two million stock options at 65 cents to directors, management and consultants of the company for a term of 12 months and the cancellation of one million previously announced stock options.

About Veritas Pharma Inc.

Veritas Pharma is an emerging pharmaceutical and IP development company, which, through its 80-per-cent-owned subsidiary Cannevert Therapeutics Ltd. (CTL), is advancing the science behind medical cannabis. It is the company's aim, through its investment in CTL, to develop the most effective cannabis strains (cultivars) specific to pain, nausea, epilepsy and posttraumatic stress disorder (PTSD), solving the critical need for clinical data to support medical cannabis claims. CTL's unique value proposition uses a low-cost research and development model to help drive shareholder value, and speed to market. Veritas investment in CTL is led by a strong management team, bringing together veteran academic pharmacologists, anesthetists and chemists.