Mr. Edgar Montero reports

CHEMESIS INTERNATIONAL INC. PROVIDES UPDATE ON OPERATIONS AND GSRX TRANSACTION

Chemesis International Inc. is continuing to proceed toward completing the previously announced transaction to purchase a majority stake in GSRX Industries Inc., with an anticipated closing date of Aug. 31, 2019.

GSRX currently operates five dispensaries in Puerto Rico and has plans to open five additional dispensaries on the island. The company also operates one retail cannabidiol (CBD) kiosk in Clarksville, Tenn., with a retail store front expected to open up in Nashville, Tenn., as well as Lakeway, Tex. GSRX also holds a fully licensed distribution centre and a boutique dispensary in Point Arena, Calif. In addition, GSRX expects to open a dispensary in Palm Springs, Calif., by calendar Q1 2020.

"Upon the successful closing of the acquisition, Chemesis will have controlling interest for the purposes of financial reporting, making the company a fully vertically integrated, multistate operator with assets in California, Tennessee, Arizona, Michigan, Texas and Puerto Rico," said chief executive officer Edgar Montero. "The company continues to position itself in the market to ensure we are able to develop the business in a way that builds long-term shareholder value."

In addition, Chemesis's California extraction facilities are seeing an increase in trim being processed month over month. The company also continues to manufacture finished products for its in-house and partner brands. The team is working on expanding its manufacturing capabilities to increase product offerings while expanding its relationship with Happy Tea and Jay & Silent Bob to add additional SKUs.

About Chemesis International Inc.

Chemesis is a vertically integrated United States multistate operator with international operations in Puerto Rico and Colombia.

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