Chemesis International Inc. Provides Operational Update
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
Chemesis International Inc. Provides Operational Update
July 26, 2019
Vancouver, BC – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or
“Chemesis”), is pleased to provide operational and corporate updates for its operating entities in the
United States, Puerto Rico and Colombia.
Partnerships
● Chemesis’ 19.9% stake in GSRX Industries continues to be advantage ous, as it brings access to
GSRX’s dispensary and retail cannabis network. GSRX has steadily increased revenues and
continues to grow its dispensary network throughout Puerto Rico, California, Tennessee. This
investment is a part of the Companys' retail expansion strategy and will continue to explore
additional opportunities to expand its retail footprint.
● Rapid Dose continues to work with Chemesis in its efforts to commercialize its QuickstripTM Oral
Thin Strips in Puerto Rico, California and Michigan.
● The Association for the Promotion of Cannabis Cultivation (“Association”) which was formed by
La Finca Interacviva Med (“La Finca”), is working in Colombia with farming communities and large
networks to bring education, and opportunity through cannabis cultivation. The Association is on
track and expects to extended its sowing prospects to an additional 10,000 acres in the next three
years.
United States
● The operations team in California has currently processed over 3,000 lbs of trim in the month of
July, and continues to ramp up production at its extraction facilities.
● In addition, the Company will continue its efforts to increase its THC infused product portfolio
with a focus on beverages, edibles and topicals in Calendar 2019.
● The Company is on track to fulfill its recently announced a partnership with Happy Tea to
manufacture and distribute 3 SKU’s which will be expanding to 9 SKU’s as the brand develops new
offerings. The Company received a $4,000,000 USD minimum purchase order to manufacture and
distribute these products.
● The Company is continuing efforts to plant its first 13 acres of hemp in Michigan under the
previously announced Cultivation license.
● The Company’s distribution asset, Desert Zen continues to operate and provide services for third-
party and in-house brands. The team is expanding its reach to additional dispensaries in central &
southern California.
● Chemesis’ Arizona CBD manufacturing fa cility is operational and is continuing to provide third -
party manufacturing services and continues to work towards GMP certification.
Puerto Rico
● The Company continues to work closely with PR ONE to meet the previously announced
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
$6,000,000 USD annual minimum purchase order.
● Natural Ventures has increased its previously announced cultivation area to yield in excess of
9,000 lbs per year. This expansion allows Natural Ventures to fulfill the previously announced
agreements with third-party brands.
● Natural Ventures has completed the previously announced LED lighting upgrade in partnership
with VividGro. This allows the Company to conduct cultivation operations with greater efficiency
and reduced energy costs.
● Natural Ventures operations have not been affected by recent unrest and protest in the area, and
is working with authorities to ensure the Company is in compliance and does not experience any
delays in production.
Colombia
● La Finca is on track to increase its land package by 10,000 acres within the next three years. To
accomplish this, the Company continues to increase its seed stock to e nsure it is able to
significantly increase the planted acreage.
● La Finca has commenced Agronomic Evaluations in three of the twelve subregions defined by the
ICA (Ministry of Agriculture). This is a necessary step as a prerequisite for obtaining commercia l
cultivar certification per seed type on each of the 12 subregions. Within six months La Finca
expects to have completed all requirements in order to start its propagation plan. The PEAS are
being conducted jointly with Universidad Nacional and closely supervised by ICA.
● La Finca’s plan remains on track for both the extraction and cosmetics manufacturing lab. The
facilities are being constructed under GMP and EU GMP standards in preparation for future
exports to International markets. La Finca’s facilities are strategically located next to Bogotá’s
international airport, considered a major hub for international flights connecting the América’s
and Europe as well as the Caribbean.
● La Finca is working closely with regulators and is on track to obtain THC cult ivation and
manufacturing of THC derivatives licenses. This allows Chemesis to partake in one of the fastest
growing medical Cannabis markets in the world as a potential supplier of CBD and THC raw
materials and finished products.
“The Company continues to execute on long term growth targets by building its cultivation,
manufacturing, extraction, and brands in the areas that it currently operates,” said CEO of Chemesis, Edgar
Montero. “As Chemesis further integrates it operations, it will look for additional operational efficiencies
to decrease lead times and op -expenses, while increasing quality. Chemesis and its operational entities
are in constant communication with regulatory authorities to ensure the Company is consistently in
compliance with all rules and regulations in the industry.”
Chemesis remains in a stable financial position with access to $32,625,000 in drawdown equity facilities.
On Behalf of The Board of Directors
Edgar Montero
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated U.S. Multi -State operator with International
operations in Puerto Rico and Colombia.
The Company focuses on prudent capital allocation to ensure it maintains a fir st mover advantage as it
enters new markets and is committed to differentiate itself by deploying resources in markets with major
opportunities. The Company operates a portfolio of brands which cater to a wide community of cannabis
consumers, with focus on quality and consistency.
Chemesis has facilities in both Puerto Rico and California, and is in the process of constructing a GMP
certified facility in Colombia. Chemesis’ Puerto Rico operations are licensed to operate 100,000 ft 2 of
cultivation, and 35 ,000 ft 2 of manufacturing floor space. The Company is positioned to win additional
licenses in highly competitive merit-based US states, and will expand its footprint to ensure it maintains a
first mover advantage.
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Forward-Looking Information: This news release contains "forward -looking information" within the meaning of
applicable securities laws relating to statements regarding the Company's business, products and future of the
Company’s business, its product offerings and plans for sales and marketing, including finalizing an acquisition in
Colombia. Although the Company believes that the expecta tions reflected in the forward -looking information are
reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to
place undue reliance on forward -looking information. Such forward -looking statements are subject to risks and
uncertainties that may cause actual results, performance and developments to differ materially from those
contemplated by these statements depending on, among other things, the risks that the Company's products and
plan will vary from those stated in this news release and the Company may not be able to carry out its business plans
as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update
any forward-looking statements or forward-looking information in this news release. Although the Company believes
that the expectations reflected in the forward -looking information are reasonable, there can be no assurance that
such expectations will prove to be correct and makes no reference to profitability based on sales reported. The
statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release