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Alternate Health Corp. Investor Update – November 2017

In the first edition of Alternate Health’s Monthly Investor Update, CEO Dr. Michael Murphy provides a detailed outline of the Company’s achievements and plans for generating revenue growth and capturing market share in the cannabis industry. This newsletter will be an ongoing publication to communicate Alternate Health’s strategies and results to shareholders and potential investors.

Letter from the CEO

Dear Stakeholders:

We began with a simple but powerful two-stage plan:

  1. Establish a strong team, Intellectual Property (‘IP’) portfolio and revenue base
  2. Pivot our focus to producing growth across all our verticals

I can confidently say Alternate Health has completed the first stage of our plan, generating over $11 million in the first two quarters alone. Now I am pleased to announce significant developments across all our verticals, including Software and Electronic Medical Records (‘EMR’), Life Sciences, Laboratory Services and Education.

CanaPass Patient Management System

CanaPass has been successfully installed in all 10 National Access Cannabis (‘NAC’) locations across Canada and we expect all 12,000 NAC patients to be uploaded to the software by the beginning to middle of Q1 2018.

CanaPass EMR Highlights:

  • • CanaPass payment engine should be complete and implemented by the end of Q4, with payment processing live on the platform in Q1 2018.
  • • Begun process of seeking and onboarding Canadian Licensed Producers to list their products on our nationwide marketplace for Canadian patients.
  • • Currently developing follow-up health questionnaires to be sent automatically to patients 72 hours after each purchase on our platform.
  • • Creating questionnaires for qualitative and quantitative information on the success of specific doses and strains in treating medical symptoms, reporting results back to physicians to monitor patient outcomes.

FlorPass Patient Management System

Alternate Health launched FlorPass, the Florida version of CanaPass, to an audience of 200 doctors at the American Medical Marijuana Physicians Association (‘AMMPA’) annual conference in October. Receiving an overwhelmingly positive response, FlorPass already has a wait list of over 50 Florida physicians ready to use the software.

FlorPass EMR Highlights:

  • • Beta testing of FlorPass EMR expected to be complete in Q4 2017 with live implementation throughout Florida in Q1 2018.
  • • Hired two new programmers to assist with our continued software development for Canadian and US versions of the platform.
  • • Exploring new markets for our software in Michigan, Pennsylvania, New York and California with custom software and go-to-market strategies depending on the specifics of each state’s medical marijuana market.
  • • Actively presenting the software to state government officials for feedback to determine the best suited markets for Alternate Health’s software.

Alternate Health Labs (AHL)

AHL's conversion to a full service clinical lab is progressing well. We are awaiting our final letter from the Centers for Medicare and Medicaid Services (‘CMS”) and Clinical Laboratory Improvement Amendments (‘CLIA’) clearance. We still expect to receive them in the fourth quarter as forecast in our most recent investor deck.

Laboratory Services Highlights:

  • • New model set to mature in 2018 with revenue and earnings again contributing tremendously to Alternate Health bottom line.
  • • Hired Dr. Jasbir Arora as Head of Alternate Health Labs. With a PhD in organic chemistry, he has years of experience running large clinical labs.
  • • Purchased new equipment to add blood allergy test to our menu.
  • • Exploring opportunities in pharmacogenetics and respiratory pathogen panels.

Research, Product Development and Life Sciences

Michael Klipper has accepted the position to direct Alternate Health’s research and product development department. As the cofounder of Cannabinoid Science International Corp. and a founding board member of Voices Against Brain Cancer, Michael has extensive experience in Endocannabinoid research.

Under his leadership, Alternate Health is set to begin developing a proprietary line of unique 100% organic CBD products designed to be the “best quality” available today. Discussions will follow with major retailers across the USA to carry our line of products.

Research, Product Development and Life Science Highlights:

  • • Signed the lease on a new facility to manufacture Cannabinoid (‘CBD’) products in California including CBD patches with production expected to begin in mid-Q4 and scale locally over Q1 2018.
  • • Hired a Business and Legal Affairs Analyst specific to our Life Science division to assist with contract drafting and negotiations, software and data laws, business and legal structure in new markets, and patent filings.
  • • Planning on finalizing the acquisition of the Neubauer Hyperbaric Neurologic Center research facility and begin our first PTSD study.
  • • Exploring opportunities for research and collaboration with scientists across Europe.

Alternate Health Medical Media (AMM)

Three Continuing Medical Education (CME) courses for physicians have been completed including: CBD and the Endocannabinoid System for Physicians, THC and the Endocannabinoid System for Physicians, Traumatic Brain Injury and Chronic Traumatic Encephalopathy: The Endocannabinoid System in Management and Recovery.

AMM Education Highlights:

  • • Actively exploring distribution channels for all education courses to generate revenue, attention and awareness for Alternate Health.
  • • Non-physician versions of each course are under development, designed for industry professionals, cannabis employees and patients that want to learn more about the Endocannabinoid System.
  • • These courses should be available for purchase on our website at the end of Q4, while Alternate Health plans on engaging online and affiliate marketing channels for national distribution.

Conclusion and Final Thoughts

By establishing a skilled team and strong revenue stream early on, Alternate Health is well positioned to lead this exciting new market. We now have the revenue, human capital and IP assets to generate growth across every area of our business. As a company, we are driven to succeed, confident that the results and successes listed above are just the beginning of Alternate Health’s market dominance in the legal cannabis industry.

Best Regards,

Alternate Health Corp.

/s/ “Dr. Michael Murphy”

Dr. Michael Murphy

Chairman and CEO

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this update. Statements included in this Investor Update, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.