Form 7 MONTHLY PROGRESS REPORT October 2015 Veritas Pharma Inc. (the “Issuer”) Name of CSE Issuer: Trading Symbol: Number of Outstanding Listed Securities: Date: VRT 19,900,000 common shares and 8,000,000 common shares reserved for issuance December 30, 2015 Report on Business 1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact. The Issuer continues to await Ready-to-Build approval from Health Canada as the first step in the approval process to become a licensed producer of medical marijuana under the Marihuana for Medical Purposes Regulations. The Issuer is considering selling the Ready-to-Build approval and continue to invest in marijuana based remedies through C 2. Provide a general overview and discussion of the activities of management. See Item 1 above. 3. Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law. None. 4. Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned. None. 5. Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship. None. #122587.1 FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 1 6. Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced. None. 7. Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship. On December 21, 2015, the Company’s On December 21st, 2015, the Company announced that it has entered into an amended and restated share purchase agreement with Cannevert Therapeutics Ltd. ("CTL") (the "Agreement"). Under the Agreement, the Company will invest a total of $1,500,000 into CTL in consideration for 6,001 common shares of CTL (the "CTL Shares"), in six separate tranches over the period of 15 months from the date of the Agreement (the "Private Placement"), after which the Company will hold 80% of the total issued and outstanding CTL Shares. The proceeds will be used for joint research with SOM to develop and assess specific cannabis cultivars that are selective in action on specific medical disorders. The Company advanced on December 15, 2015 the first $250,000 tranche. In connection with the Agreement and the transactions contemplated therein, CTL, its shareholders, and the Company will enter into a voting trust agreement (the "Voting Agreement"). Pursuant to the Voting Agreement, the Company will grant a representative of CTL the right to vote the CTL Shares held by the Company until the completion of the Private Placement. CTL and the Company will jointly engage a qualified independent business valuator on or about the date that is 18 months from the closing of the first tranche (the "Valuation Date"), or such other date as may be mutually agreed upon by the parties, to prepare a written report as to the total value of CTL as of the Valuation Date. Concurrent with the closing of the first tranche of the Private Placement, the Company and CTL will also enter into a shareholders’ agreement, pursuant to which the Company will, so long as it holds shares in CTL, have the right to appoint one director to the board of CTL (the "Board"), and will, upon holding 80% of the total issued and outstanding CTL Shares, have the right to appoint a majority of directors to the CTL Board. Each other shareholder of CTL, except the Company, will be granted a right for a period of 3 months following the receipt of the valuation of CTL to give notice to the Company to require the Company to purchase the CTL Shares that each shareholder holds. 8. Describe the acquisition of new customers or loss of customers. None. #122587.1 FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 2 9. Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks. None. 10. Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs. None. 11. Report on any labour disputes and resolutions of those disputes if applicable. None. 12. Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings. None. 13. Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness. On December 8, 2015, the Company entered into a loan agreement, as amended, with an arm's-length lender to borrow an aggregate of $300,000. The proceeds of the loan will be used for general working capital. The company may, on three days notice to the lender, draw down any amount from the loan. Each time the lender provides an advance to the company, in addition to the advance being added as an amount owing under the loan, 15 per cent of the advance (the bonus) shall immediately be added to the amount owing under the loan. The parties agree that the bonus is consideration for the lender providing the advance to the company. There is no interest payable on the amount outstanding under the loan. The loan and the bonus shall be repayable by the company to the lender on the earlier of: (a) one year from the date of the first advance; and (b) the date the company first raises capital after the execution of this agreement. Pursuant to the agreement, the lender and the company agree that the company may, in its sole discretion but without obligation, repay all amounts outstanding under the loan by way of issuing common shares in its capital to the lender, at a price per share to be determined at the time of settlement in accordance with the applicable policies of the Canadian Securities Exchange. The agreement and the transactions contemplated therein are subject to CSE approval. 14. Provide details of any securities issued and options or warrants granted. #122587.1 FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 3 None. 15. Provide details of any loans to or by Related Persons. The Issuer entered into two separate loan agreements both dated March 10, 2015 (the "Loan Agreements") with each of Vlad Voskoboinikov ("Vlad") and a private company controlled by Alex Polevoy ("Numco"), under which the Issuer borrowed $100,000 from each of Vlad and Numco for an aggregate total of $200,000 (the "Loans"). Messrs. Voskoboinikov and Polevoy are former directors of the Issuer, and Mr. Polevoy is the former CFO of the Issuer. These Loans accrue interest at 5% per annum, a 6-month term, and are convertible into common shares of the Issuer at a conversion price equal to the 30-day average trading price of the shares less 20%, to a minimum of $0.10 per share. The Issuer entered into two loan agreements dated August 14, 2015 (the “Loan Agreements”) with each of Vlad Voskoboinikov (“Vlad”) and a private company controlled by Alex Polevoy (“Numco”), under which the Issuer borrowed $25,000 from each of Vlad and Numco for an aggregate total of $50,000 (the “Loans”). Messrs. Voskoboinikov and Polevoy are former directors of the Issuer, and Mr. Polevoy is the former CFO of the Issuer. These Loans accrue interest at 5% per annum, a 6-month term, and are convertible into common shares of the Issuer at a conversion price equal to the 30-day average trading price of the shares less 20%, to a minimum of $0.10 per share. 16. Provide details of any changes in directors, officers or committee members. Vlad Voskoboinikov and Alex Polevoy resigned as director and director and CFO respectively on November 4, 2015. On this date Dr. Luigi Franciosi was appointed a director and CFO of the Company. On December 7, 2015, the Len Werner resigned as CEO and President; and Dr. Luigi Franciosi was appointed President and Director. 17. Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends. None. Certificate Of Compliance The undersigned hereby certifies that: 1. The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance. 2. As of the date hereof there were is no material information concerning the Issuer which has not been publicly disclosed. #122587.1 FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 4 3. The undersigned hereby certifies to CSE that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all CSE Requirements (as defined in CSE Policy 1). 4. All of the information in this Form 7 Monthly Progress Report is true. Dated: December 30, 2015 Lui Francosi Name of Director or Senior Officer Signature CEO & Director Official Capacity Issuer Details Name of Issuer: Veritas Pharma Inc. For Month End September 2015 Date of Report: YYYYMMDD 2015/12/30 Issuer Fax No.: 778.262.0121 Issuer Telephone No. 778.968.6260 Contact Name: Dr. Luigi Franciosi Contact Position: CEO Contact Telephone No. 778-968.6260 Contact Email Address: info@veritas.com Web Site Address: www.veritas.com Issuer Address: 101 – 2386 East Mall, University of British Columbia, City/Province/Postal Code: Vancouver, BC V6T 1Z3 #122587.1 FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 5