October 23, 2014 - Vancouver, British Columbia – Vodis Pharmaceuticals Inc. (the “Company” or “Vodis”) (CSE: VP / FSE: 1JV) would like to provide clarifications as to the status of the company’s existing operation and various business initiatives. This clarifying news release is being issued as a result of a review by the British Columbia Securities Commission.
BC Production Facility Licensing update.
Since the company received its ready to build in January of 2014 the company has worked diligently to upgrade its production facility to Health Canada’s standards, including:
- Implementing BioTrackTHC™, which is a seed-to-sale Medical Marijuana Tracking and Record Keeping Software and POS System.
- The installation of over 150 WAN network surveillance cameras covering every square inch of the facility and accessible by the RCMP.
- Key card sensors for tracking employee movement while on the production floor.
- Acquired a previously owned Tier 8 Bank of Montreal vault.
- Erected a 10-foot high barb wired fence with sensors.
- Installed air filtration and pressure monitor systems to the building and all areas where Cannabis is present.
- Painted Mold and Fire resistant panels to comply with GAP and GMP sanitation site SOP plan.
- Installed a heat recovery and humidity monitoring system.
- Constructed and equipped server room for security.
- Added 3 additional production rooms.
- Hired on a full time basis a Health Canada approved Director of Quality Assurance.
- Trained staff on GAP, GMP SOP’s and BioTrackTHC in preparation for a Health Canada inspection.
The Company has made payments and is now awaiting arrival of a brand new Tier 8 upgraded vault to further ensure Health Canada’s approval at the time of inspection. The safe will be the final component to be installed and the company has provided Health Canada notice its readiness for a final inspection. The Company anticipates that up to a further $300,000 will be spent on work already underway or to be completed which the Company expects will be finished by the end of November 2014.
The MMPR Application Process
For those not familiar with the Health Canada process for becoming a licensed producer, In addition to making significant investment in the application, construction and training the company will be required to pass an inspection upon Health Canada’s arrival. The company cannot make any statement as to when—or if—Health Canada will arrive. The process is as follows:
Step 1: Preliminary screening
Step 2: Enhanced screening
Step 3: Security clearance
Step 4: Review
Step 5: Ready-to-build letter
Step 6: Pre-licence inspection
Step 7: Licensing
Investors are advised to view the Health Canada website at : http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php
Or Contact them directly at: 1-866-337-7705 should they desire to know more about the application process.
Vodis and SynMatrix Inc.
The company wishes to provide further clarification as to the memorandum of understanding with SynMatrix. The MOU signed with SynMatrix as of September 10th 2014 will remain in effect for a period of six months or until the execution of a formal joint venture agreement.
The Memorandum of Understanding provides the basis for the agreement between SynMatrix and Vodis whereby SynMatrix will be responsible for the development and production of the LED lights and Vodis will be responsible for the sales and marketing of the LED lights in Canada and the USA. The agreement is mutually exclusive.
Vodis and Pacific Therapeutics
The company wishes to provide further clarification as to the term sheet with Pacific Therapeutics. The term sheet signed with Pacific on August 1st, which is to remain in effect for a period of 90 days is the basis of advanced discussion between both companies with a draft joint venture agreement having been prepared. The company is working diligently to complete its agreement with Pacific Therapeutics.
The term sheet provides the basis for the agreement between Vodis and Pacific as follows:
The two companies under joint venture will form a joint operating company and endeavor to use Vodis’ cannabis production, once licensed by Health Canada, and Pacific’s sublingual pill delivery IP to develop a canabanoid based pharmaceutical product for research, development, commercialization sales and distribution worldwide. Upon commercialization of the PRODUCT, JV shall pay to Pacific Therapeutics a royalty equal to 10% of revenue on the first $5,000,000 of revenue derived by JV from the PRODUCT and 5% on all revenue derived by JV from the PRODUCT over and above the first $5,000,000. VODIS will be paid to supply cannabis under the negotiated supply agreement and will also receive a 5% royalty on all revenue derived by the JV.
Vodis has provided this corporate update in response to a request for clarifications by the British Columbia Securities Commission and by our shareholders.
For more information please contact:
CFO & Director
104-1037 West Broadway
Vancouver, BC V6H 1E3
direct: 1-866-210-1420 ext. 106
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statement, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including whether the Company will pass its inspection with Health Canada; whether the Company will begin production on the terms or at the capacities forecast, or at all; whether the Company will secure adequate financing to complete the additional work required at its production facility; whether the construction will be completed at the production facility in a timely manner or at all; whether the Company’s announced transaction will be completed on the terms announced or at all. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
This news release, required by the applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States and does not constitute an offer of securities for sale in the United States. These securities have not and will not be registered under United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. Person unless so registered, or an exemption from registration is relied upon.
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