CANQF Canaquest Medical Corporation (PK)

ITEM 8.01 OTHER EVENTS

Repayment of Outstanding Notes

From the proceeds of its private placement, the Registrant repaid US$91,293 of convertible notes issued to GHS Investments, LLC, which had been convertible into common shares at a discount to market. Of the remaining GHS notes, John Clarke, a principal of Midtown Partners, purchased the balance of the GHS notes and agreed to a floor on the conversion price equal to the conversion price on the convertible notes issued to Teewinot. An additional US$53,000 of convertible notes were also repaid. As a result of these transactions. The Registrant has effectively eliminated its exposure to “floorless” convertible instruments.

Grant of Shares under the Stock Incentive Plan

Effective as of November 8, 2017, the Registrant issued 350,000 common shares of the Corporation to each of Richard Rusiniak, Paul Ramsay, and Ross Eastley in light of their services during 2017 during which they have received no other compensation. In addition to these share issuances, the Registrant granted options to purchase 240,000 options to Messrs. Rusiniak and Ramsay, 200,000 options to Mr. Eastley, and 60,000 options to the outside directors, such options to be priced at the close of business on November 10, 2017. These shares and the shares underlying the options were registered under the Securities Act by virtue of the Registrant’s Registration Statement on Form S-8.

Receipt of Grant

The Registrant has been awarded a $400,000 Project Funding (Grant) from MITACS. This program will commence December 1st., 2017 and will be ongoing for 3 years. It will be headed by Dr’s. Steven Laviolette and Walter Rushlow, University of Western Ontario. The program will include three Post Doctorals and three Doctorals. This grant is leveraged from the research agreement the Registrant signed with the university and announced March 13, 2017.

The University of Western Ontario and the Registrant are working to identify and produce specific cannabinoid oil formulations with ratios of THC and CBD that selectively target specific symptoms associated with these complex diseases. In addition, our research will help identify specific biomarkers by which we can better determine which patient populations may best benefit from these specific cannabinoid-based formulations. Our research will lead to significantly improved understanding of the therapeutic benefits (as well as potential risks) associated with the use of therapeutic cannabinoid formulations and the development of targeted cannabinoid formulations for advancement towards clinical trials and commercialization of novel cannabinoid pharmaceuticals.