Mr. Brian Gusko reports

VODIS FORMS US SUBSIDIARY

Vodis Pharmaceuticals Inc. has formed a wholly owned subsidiary, Vodis USA Inc., based in Washington state, to invest in and develop real estate in Washington state for the purpose of serving licensed I-502 production and processing businesses. Vodis USA intends to acquire real estate, retrofit buildings and provide production-ready facilities to qualified I-502 cannabis Tier 3 production and processing licence holders.

In addition to providing specialized facilities to I-502 producers and processors, the company will license its award-winning, pharmaceutical-grade growing techniques, standard operating procedures and innovative manufacturing practices to further assist licence holders with their production and processing operations. The company believes these services will create synergies and advantages that will provide for significant and long-term revenue for the licence holder and, in turn, to Vodis USA.

About the Washington I-502 marijuana market

In November, 2012, the Washington State Liquor Control Board passed Initiative 502 pursuant to a vote by the people of the state of Washington. I-502 authorized the WSLCB to regulate and tax recreational marijuana products for persons over 21 years of age and thereby created a new industry for the growing, processing and selling of Washington state-regulated recreational marijuana products. A recent WSLCB commissioned report by the Rand organization suggests that there are currently up to 650,000 recreational marijuana users in Washington state, worth approximately $1.25-billion (U.S.) to $1.5-billion (U.S.) in annual sales.

We seek Safe Harbor.