Mr. John Miller reports

THC SIGNS DEFINITIVE AGREEMENT TO PURCHASE CLONE SHIPPER

THC Biomed Intl Ltd. has entered into an agreement to purchase Clone Shipper LLC for $1-million (U.S.).

Clone Shipper is a U.S.-based company specializing in packaging products for the transport of living marijuana plants. THC is currently the exclusive Canadian distributor for Clone Shipper products and has entered an agreement to buy Clone Shipper itself.

Under Canadian law, patients can either grow medical marijuana themselves or purchase it from a licensed producer. Patients and licensed producers must purchase their live plants (starting materials) from legally approved sources.

"We believe that Clone Shipper is the only container on the market that meets Canadian, U.S. and international laws governing the transportation of live cannabis plants. With the changing global attitude towards medical cannabis and the increasing demand for legal starting material we foresee an increased need for secure packaging to facilitate the transportation of live cannabis plants. Clone Shipper is well established in the USA and is positioned to be a leader in the packaging of live cannabis plants globally," said John Miller, president and chief executive officer of THC.

Out of the 38 licensed producers, only four of them offer starting materials, according to the Health Canada website. THC believes that purchasing Clone Shipper will allow it to dominate the Canadian market for Starting Material containers and in the United States and internationally, when and if it becomes legal in those markets.

Pursuant to the purchase and sale agreement executed between THC and Clone Shipper, THC will pay $1-million (U.S.) for the purchase of 100 per cent of the issued and outstanding securities of Clone Shipper. Following the completion of the acquisition, Clone Shipper will be the wholly owned subsidiary of THC.

Clone Shipper products are available for sale through the company's website or Clone Shipper's website. They are also available for purchase at gardening supply outlets throughout the U.S. and on Amazon.

THC's vision is to be on the leading edge of scientific research, development of products and services related to the medical cannabis industry while creating a standard of excellence. As the industry develops, it will become more important to focus on scientific research and development of products and services related to medical cannabis. Management believes THC is well positioned to be in the forefront of this rapidly growing industry.

We seek Safe Harbor.