Verde Bio Holdings Inc (fka VBHI)

[LivinLarge8]

Letter from the CEO

May 18, 2017
OTC Disclosure & News Service

Salt Lake City, UT -

First of all, I would like to thank everyone for being involved and supporting the IPRC team. As the saying goes, it takes a village, and indeed running and growing an operation takes many players contributing!

I wanted to write this letter to you, our shareholders, primarily to address some concerns that have been expressed via our IR channels and potentially clear up any assumptions that may be incorrect. I will do this within the confines of the SEC guidelines as we all must operate under fair and equal disclosure and that we will continue our regular financial reporting as required.


So, to start:


You will see at the attached link (http://www.redchip.com/assets/reports/APHD_FactSheet_20170307.html ) we have updated our investor presentation to include these foundation blocks of the company additionally the OTCMarkets profile page has been updated as well (https://www.otcmarkets.com/stock/APHD/profile ).


As you may appreciate this is a fast-moving area of the business and takes time to correlate some of the data. As we proceed we will endeavor to have this updated data more readily available and published.


To be sure at this stage in our business you may appreciate that utilizing our shares for fundraising is a very important source of growth and acquisition funds for us. As per previous reporting our terms on the debt issuances have gotten better over time and we expect this to continue improving. Of course, many things drive this activity and its costs to the business so we are very aware of terms and convertible dates.


14C Clarification: We filed the 14C as required under regulations for the following reasons:


In order to initiate a corporate name change (and potentially ticker) we need to notify respective parties

In order to provide head room in our authorized share pool for both acquisitions and conversion options we wanted the increase. Indeed, five Billion is a large number but we feel this gives plenty of room especially considering current PPS to fulfill our mission. This should also negate yet another filing in the future for same.

What everyone should remember is this is a filing to increase the number of shares available to the corporation this does not mean an immediate dilution of same. As with all our financial activities, we tend to be conservative in this fashion converting/raising only as we see fit and when it is needed. If possible within regulations we will indicate how a transaction was funded however of course all is disclosed during regular financial reporting.

General and Acquisition financing we have been working hard with our partners and brokers to come up with a viable, long term model to facilitate one of our growth patterns namely grow via acquisition. To that end, we are working primarily with 2 parties on this front that have the long-term prospects of the company at heart and we hope will have more of a long play with our stock. Minimally their success criteria are measured differently than some other parties and would indicate a longer hold and/or a more controlled selling when need be. We will this is in the best interests of the Company, its shareholders and the PPS as well.

Cyber Security Marketplace This space is highly competitive, quickly changing and moving fast. However, in general the sales cycle (unless you are really, really lucky) is generally long 12-18 months. There are myriad reasons for this, but this is typical for the space especially anything enterprise class. ClassiDocs and its related products fall into this bucket, so we will be preforming some standard practices to both shrink the sales cycle, but more importantly, be there when funding/budgeting is being determined for next fiscal by the customer. This keeps margins higher and allows better planning for all involved. Additionally, you will be seeing additional compete positioning against some of our standard competitors (titus.com, BoldonJames, Varonis, and more) including speedsnfeeds and other comparison documents. We have already briefed Gartner on the solution twice now to good reviews, so we will be pursuing this hard for rest of 2017. Additionally, you will see ClassiDocs being discussed in ways that arent something you would typically consider primarily because of its unique architecture especially considering the recent ransomware attack WannaCry, etc. Lastly, we are wrapping up some partnerships with global security firms making their product offerings better to their clients dragging along ClassiDocs as a sale.


We have spoken a lot about the major enterprise market its challenges and rewards. But that is just one way to eat the elephant. For each product we have in house and each product we are planning to acquire we are looking/building the equivalent down market version of it as well. So, for example, for ClassiDocs not everyone will need all the enterprise features (perhaps ever, because of their size or industry), so we will offer a scaled down version. For another product/firm we are looking at acquiring (again, major enterprise-class and scale), we are also looking at another firm that presents some/all of the same use cases and functionalities perhaps with less reliability, less encryption or a few less features. Either way, for each customer lead we do manage to attach to, we want to be able to present an option that is appropriate to them specifically in case theyre not ready for the big solution, smaller budget, or other reasons. We will sell them the lower solution usually at a much lower price point keep them as a customer and upsell from there where warranted. We have used this technique to great success in the past, and is not that far off from the freemium model that is popular as well.


We hope this answers some of your basic questions about the company, our strategy and our long term plans. You may view the investor presentation we prepared a few weeks back (http://www.redchip.com/company/technology/APHD/362/APHD ): and our summary investor sheet (http://www.redchip.com/assets/reports/APHD_FactSheet_20170307.html ):


If you have continued questions, or would like something addressed (that we can address!) in the next letter, please submit to [e-mail] and well address as appropriate.




Cheers, and again, thank you for your support!




Rob Sargent,

CEO, Appiphany Technologies (IP Risk Control)