Mr. Otto Folprecht reports

VODIS SIGNS AGREEMENT WITH WASHINGTON STATE MARIJUANA TIER 2 TENANT

Vodis Pharmaceuticals Inc.'s subsidiary, Vodis USA, has signed a sublease agreement, and the company is moving forward with the development of a Tier 2 marijuana production and processing facility as required by the state law and governed by the Washington State Liquor Board. The Vodis facility is expected to be retrofitted to the Vodis production standards within the next 12 weeks, with production to begin thereafter.

Vodis will be responsible to retrofit the previously announced lease-to-own facility in Bellingham, Wash., to include a turnkey solution for the I-502 production and processing licence to begin marijuana production. That turnkey solution will include state-of-the-art lighting, cooling, security and environmental controls. Vodis is also identifying vertical growing techniques, which would allow the company to further increase the production yields. Additionally, Vodis will also provide the licensee, on a licence basis, access to its quality assurance program, good manufacturing practices, generally accepted agricultural practices, and extend the Vodis expertise and production services. Furthermore, Vodis will license the Tier 2 licence holder to distribute products under the Vodis Pharmaceuticals recognized brand name, VIP.

Otto Folprecht, chief executive officer and director, stated, "This is a significant milestone for the company in establishing VIP as an internationally recognized brand in the marijuana production and services industry."

According to the National Survey on Drug Use and Health, it is estimated that in Washington state, up to 12 per cent of individuals in the age group 21 and over consume marijuana for medical or recreational use. The last census in 2014 reported that the Washington state population was 7,062,000.

While Vodis Pharmaceuticals and its subsidiaries cannot have any interest in any proceeds as a result of production, processing or retail activities in the United States, it can license its brand, production and consulting services to approved Washington state marijuana licence holders to ensure that all products produced under the Vodis Pharmaceuticals program and/or associated under the VIP brand meet or exceed the Vodis brand quality standards.

Also, Vodis Pharmaceuticals has a ready-to-build letter issued by Health Canada and is waiting for the final building inspection date from Health Canada to initiate the next step in the licensing of its Delta, B.C., medical marijuana production facility.

We seek Safe Harbor.