The following content is excerpted from the Prospectus of Tidal Royalty Corp. dated January 29, 2018 filed on SEDAR.
Puerto Rico Marijuana Industry Overview
In May of 2015 the Governor of Puerto Rico signed an executive order legalizing medical cannabis. The Puerto
Rico Health Department was tasked with developing regulations for the production, manufacturing, and sales of
medical cannabis and medical cannabis products. In January of 2016, the Puerto Rico Health Department published
their initial set of regulations governing the medical program. Puerto Rico permits the use of medical cannabis
pills, creams, patches, tinctures, and whole plant cannabis for vaporization only. Smoking medical cannabis is
prohibited in Puerto Rico. The program has a wide range of qualifying conditions including chronic pain, severe
nausea, and migraines as well as cancer, HIV, AIDs, Crohn's disease and other conditions often included in state
medical marijuana programs. Puerto Rico has strict residency requirements for medical cannabis business
ownership that stipulate the business entity must be held at least 51% by Puerto Rican residents. The medical
marijuana program does not require cultivation and dispensing operations to be vertically integrated, but also does
not prohibit a single entity from holding a cultivation, manufacturing, and dispensing license.
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