Mr. Marcos Agramont reports

ISODIOL INTERNATIONAL INC. ANNOUNCES MAJOR INTERNATIONAL EXPANSION AND INNOVATION DUE TO GLOBAL DEMAND

Isodiol International Inc. has finalized the definitive agreement and has closed upon the acquisition of strategic global assets. With the closing of this transaction, the company has expanded its international management team and commenced development on a new state-of-the-art processing facility in China for the extraction of cannabinoids and terpenes from organic certified hemp.

The company has purchased the following strategic assets:

• BSPG Laboratories Ltd.: Organized in the United Kingdom, BSPGL-UK's business includes, but is not limited to, an operating facility that refines the cannabidiol molecule to a purity of greater than 99.5 per cent, is THC free and highly bioactive. Isodiol has acquired 100 per cent of BSPGL-UK.
  • Total consideration for BSPGL-UK was $13-million (U.S.) with $4.5-million (U.S.) having already been paid and an additional $8.5-million (U.S.) being paid over the next 16 months.
  • Additional milestone payments of $25-million (U.S.) in stock will be made upon BSPG Laboratories receiving government approval for an active pharmaceutical ingredient (API), which the company believes is forthcoming and will provide the platform for which its isolate can be sold to pharmaceutical companies throughout the world for clinical and pharmaceutical use, and could substantially increase the global revenue for the company.
• Purodiol Do Brasil Ltda. (PUR-Brazil): Organized in Brazil, PUR-Brazil supplies Purodiol pharmaceutical products under ANVISA regulations to patients in Brazil and is currently involved in multiple clinical studies and trials. Isodiol has acquired 99 per cent of PUR-Brazil, which provides an immediate boost to its revenue and substantially expands its customer base in South America.
  • Total consideration for PUR Brazil was $2-million (U.S.) in cash and $3-million (U.S.) in common stock.
• Three pivotal processing patents from Hankang (Yunnan) Biotech Co. Ltd. (HBTC-China): Organized in China, HBTC-China extracts CBD that is used for research and development and commercial purposes. HBTC-China has successfully developed and patented a sophisticated industrial production process to extract CBD from hemp. The company has purchased these three patents for processing and extracting CBD from HBTC-China and has also secured an exclusive off-take agreement for 100 per cent of its CBD production, currently operating at 1.5 metric tons daily.
  • Total consideration for the acquisition of the three patents and the 100-per-cent off-take agreement is $500,000 (U.S.) in cash.

Along with the purchase of these patents, the company has commenced development on a new state-of-the-art processing facility in Yunnan, China, that will have the ability to process over 15 metric tons of hemp biomass daily for the extraction of cannabinoids and terpenes for use in medical, nutraceutical, food and cosmetic industries utilizing these technologies. The company believes this to be the highest capacity processing facility for CBD isolate in the world and is expected to be completed by Q1 2019. This innovative facility requires a capital investment for construction that is budgeted at $5-million (U.S.) and equipment costs that is budgeted at $7.5-million (U.S.).

With the commencement of the new state-of-the-art facility, the company is proud to announce that the general manager of HBTC-China, Pan Zongbing, is joining the company as the vice-president of research and development for Isodiol International, and as the chief operating officer of Isodiol's wholly owned subsidiary, Iso Labs. Mr. Zongbing has studied the biological extraction of CBD from industrial hemp for over 10 years. He has successfully researched and developed the CBD industrial production process and his industrialized mass production technology and equipment is well known around the globe. With Mr. Zongbing, the company is excited to take the next steps in helping the world understand the benefits of CBD for the human body.

"These transactions mark major milestones for Isodiol. The acquisitions ensure the company has a continued source of CBD and scalability of production as our international expansion continues to generate additional market demand for our products. The addition of the intellectual property and likelihood of obtaining an approved active pharmaceutical ingredient designation will ensure the company holds its position as the world's leading purveyor of CBD," said chief executive officer of Isodiol, Marcos Agramont. "Through this new facility and the industrial-sized, patented extraction methodologies, we will significantly increase our production output of high-purity, bioactive cannabinoids that can be used in pharmaceutical applications."

Isodiol has also closed a strategic investment for $10-million led by the Serruya Private Equity Group, Scythian Biosciences Corp. and Liberty Health Sciences Inc. at 73 cents with a full three-year warrant at $1. This strategic financing will be allocated toward international expansion and the development of additional manufacturing facilities.

The company is also pleased to announce the continuation of its international expansion in Latin American with Scythian for distribution in Argentina, Jamaica and Columbia. Scythian has made significant in-roads with the Argentinian government with supply agreements and plans to further that relationship in the CBD industry with this collaboration. The company will further expand its plans for Jamaica and Columbia in the coming weeks.

In addition, Isodiol announces a strategic distribution partnership for Florida and Massachusetts with Liberty Health Sciences Inc. for Isodiol-branded products within the medical dispensary market. This partnership will further expand Isodiol's reach within two key U.S. states, with the possibility of further expansion.

"These two distribution channels further expand the marketplace for Isodiol and we are excited that both of these companies share similar values in wanting to bring health and wellness to those people within the market they serve," said Mr. Agramont.

The previously announced agreement with BSPG-Hong Kong has been cancelled. All stock issuances are subject to 36-month escrow per Canadian Securities Exchange guidelines.

About Isodiol International Inc.

Isodiol International is the market leader in pharmaceutical-grade phytochemical compounds and the industry leader in the manufacturing and development of CBD consumer products.

Isodiol is the pioneer of many firsts for the cannabis industry including commercialization of 99-per-cent-plus pure, bioactive pharmaceutical-grade cannabinoids, microencapsulations and nanotechnology for the highest-quality consumable and topical skin care products.

Isodiol's growth strategy includes the development of over-the-counter and pharmaceutical drugs, expanding its phytoceutical portfolio and will aggressively continue international expansion into Latin America, Asia and Europe.

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