Correspondance with management thread, page-2

Awesome work -


Hi Mathew,

Matt: Tough times ahead it seems - just due to timing of global markets and general sector sentiment

Rixhard: i’ve just been to the Cannatech conference in Sydney, were companies such as Canopy (Bruce Linton), Tillrey, etc were all present.

This sector isn’t going anywhere and will continue to grow at light speed.

For sure, there will be a shake-out as the market matures and companies with uncompetitive business models will be found wanting. To stay competitive companies will need to specialise while those who persist with the fully integrated model, with the exception of the large enterprises such as Canopy, will struggle.

For this reason Zelda remains as the forefront of developments in the sector. By focussing on clinical trials and downstream distribution our business is facing the value-added part of the chain while those involved in cultivation will find their markets rapidly commoditised.

The feedback from the conference was overwhelmingly positive towards Zelda.

Matt: I need to ask though - when the only solice is believing over a long enough period of time zelda will yeild results and hopefully be rerated, what are your views on the need for future capital raisings?

When could we expext this need to arise?

Richard: Zelda is fully-funded to achieve its upcoming milestones. The company's capital requirements are always under strategic review but we’re not looking to fund raise anytime soon.

Matt: Can you talk to the integrity in zeldas capability to produce value over the next 12 to 18 months vs doubts suggesting zelda may be a lost cause.

We’ve just initiated two seminal trials with results expected by mid-2019. These are addressing a critical need in the market for clinical data that supports use of medicinal cannabis. If successful, I would say there is plenty of cause of optimism.

Based on comparative valuation with our peers, many of whom have limited exposure to clinical trials and intellectual property, I’d say we represent good value.

Best

Richard