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ORIGINAL: Investor Update and Shares for Debt Announcement
2018-03-21 09:00 ET - News Release
(via TheNewswire)
March 21, 2018 / TheNewswire / Vancouver, British Columbia - Vodis Pharmaceuticals Inc. (CSE:VP, FWB:1JV1) (" Vodis " or the " Company ") provides an update on operations in Canada and the United States. Since the fall of 2017, the Company's Canadian operations have met the challenges of working capital requirements while it navigated the Health Canada licensing approval process.
Vodis is pleased to report that all key personnel being the 'Senior Person in Charge', the 'Responsible Person in Charge', the 'Alternate Responsible Person in Charge' have now passed regulatory security clearance. Under the Access to Cannabis for Medical Purposes Regulations (ACMPR), key personnel 'in charge' must receive security clearance before a cultivation licence can be granted by Health Canada. Upon receiving confirmation of the security clearances, the Company responded to a comprehensive questionnaire from Health Canada on its standard operating procedures and detailed physical security protocols.
Beyond the Health Canada requirements and in advance of the Licence, the Company has identified upgrades, which will make significant improvements to yields and quality once operations commence, for its Delta, BC, facility. These renovations include the installation of specialized wall finishes in the production and processing areas. Vodis has installed a similar system in its Bellingham, WA, facility and results have exceeded expectations. The Company is modelling its lighting on a proven combination of Ceramic Metal Halide and LED lights - which routinely yield crops in excess of 30% total cannabinoid content at its Bellingham, WA, facility. The increased efficiency and increased crop yield from these lights have demonstrated a six-month payback period based from the experience in Bellingham. The Company expects these upgrades to be completed by mid-April. The Company will, thereafter, promptly file its Confirmation of Readiness with Health Canada, and is confident in its ability to secure a cultivation licence.
Vodis intends to serve both the medical and future recreational markets. The Company will begin its customer outreach efforts in May 2018 at the Lift Cannabis Expo in Toronto, Ontario. Interested customers are encouraged to sign up for updates on the Company's website, vodis.ca. The Company is also in the process of updating its web presence in anticipation of increased consumer traffic.
The Company is pleased to report that its facility in Bellingham, WA, has received authorization from the Washington State Liquor and Cannabis Board to utilize 100% of the facility. This will allow the Company's tenant, Premium Cannabis Producers LLC (PCP), to utilize the full 10,000 square foot canopy that their Tier 2 licence allows. The Company expects to realize significantly increased revenue from its relationship with PCP in the upcoming fiscal year. PCP provides regular updates on its crops and activities in Washington State via the @vodisusa social media handle.
Vodis CEO, Ivan Miliovski states, "The Company has faced many challenges in the past year. We appreciate the continued support our investors have shown while the Company strives for the next level. The Company and its founding team are committed to providing Canadians with extremely high-quality cannabis. We also remain committed to our Vodis USA strategy and plan to expand aggressively as both businesses become cash-flow positive."
Shares for Debt Settlement
The Company also announces it has entered into a debt settlement agreement with an arm's length party to settle a debt totalling $25,000 with the issuance of 66,000 common shares (the " Debt Settlement Shares "), based on a deemed value of $0.3788 per common share.
The Debt Settlement Shares shall be subject to a statutory hold period of four months, in accordance with applicable Canadian securities legislation.
About Vodis Pharmaceuticals Inc.
Vodis is one of North America's foremost brand names in the medical and recreational marijuana business with operations in both the United States and Canada. Its master grow teams have consistently won or placed at each Canadian competition they have entered with their "VIP" brand. The Company, with facilities in British Columbia and Washington State, is also actively looking into expansion opportunities in other countries and throughout the United States.
While Vodis and its subsidiaries cannot have any interest whatsoever 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 licence holders to ensure that all products produced under the Vodis Pharmaceuticals program and/or associated under the VIP brand meet or exceed Vodis-brand quality standards.