Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “ Company” or “Chemesis”) wishes to provide clarity regarding the status of certain of the licenses (“ La Finca Licenses”) held by its Colombian subsidiary, La Finca Interacviv-Arachna Med SAS (“La Finca”). The Comp
April 24, 2020
Vancouver, BC – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “ Company” or
“Chemesis”) wishes to provide clarity regarding the status of certain of the licenses (“ La Finca Licenses”)
held by its Colombian subsidiary, La Finca Interacviv-Arachna Med SAS (“La Finca”). The Company’s news
release dated March 13, 2019 stated that La Finca “is now able to export its high concentrate CBD genetics
as well as distillates and other manufactu red products”. In addition, the Company’s news release dated
November 4, 2019 stated that La Finca is “a licensed cultivator, producer, distributor, and seller of
cannabis products with export abilities into global markets”. The Company notes that the La Finca
Licenses permit La Finca to do the following with respect to non-psychoactive cannabis: (1) production of
seeds and cultivation of cannabis plants; (2) fabrication of derivatives; (3) storage, transportation and
distribution of products; and (4) use and possession for industrial and scientific purposes. The La Finca
Licenses also enable La Finca to commercially sell biomass and cosmetic finished products. The Company
also notes that the La Finca Licenses remain up to date and valid. However, in order to carry out further
product commercialization and the exportation of such products under the La Finca Licenses, there are
certain certifications and registrations that must be obtained. For instance, in order to further
commercialize, it is first necessa ry to complete the Pruebas de Evaluacion Agronomica - Agronomic
Evaluation Trials (“ PEAs”) and obtain a registered cultivar certification from the Government of the
Republic of Colombia. The PEA process (“ PEA Process”) includes multiple stages, including d evelopment
of seeds through a growth cycle in various regions throughout Colombia followed by rigorous testing of
the performance and potency of the plants. The PEA Process requires significant capital investment and
typically takes approximately 12-18 months to complete, depending on the success of the cultivation and
harvest process and the speed of regulatory approvals. As such, while the Company is currently engaged
in the PEA Process, under Colombian regulations related to cannabis matters, La Finca do es not require
additional licenses other than the ones it currently has for the production and marketing of finished
products or non-psychoactive cannabis-based raw materials.
Further, the Company notes that while the La Finca Licenses permit the export o f non -psychoactive
cannabis products, the Company has been advised that it is also required to register with the Ventanilla
Unica de Comercio Exterior - Foreign Trade Single Window in order to export its products out of Colombia,
which is a requirement of any industry engaging in the exportation of goods out of Colombia (the
“Registration Process”).
The Company is working diligently to successfully complete the PEA Process and the Registration Process
and will provide updates as it progresses through each process.
On Behalf of The Board of Directors
Edgar Montero
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 operates a portfolio of brands that cater to a wide community of cannabis consumers, with
a focus on quality and consistency. Chemesis has facilities in both California and Puerto Rico.
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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, the completion of the PEA Process and
the Registration Process, its plans to continue to develop dispensaries in Puerto Rico, and its ability to obtain licenses
in additional jurisdi ctions. 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. 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 PEA Process and the
Registration Process may not be successfully completed in a timely manner, or at all, 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, including, but not limited to, in relation to developing dispensaries in Puerto Rico, and its ability
to obtain licenses in additional jurisdictions. 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 s uch 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