Algae Dynamics Corp. announced a research agreement with the University of Waterloo to perform fundamental research on cannabis oil and its constituents in the context of the development and treatment of cancers of the colorectum, pancreas, breast and prostate. This research agreement will directly support this initiative and will carry out studies relating to the cellular safety and known cancer-related potential of components within botanical oils, with a focus on cannabis. The company's contribution to the three-year sponsored research agreement, which commences April 1, 2017 and terminates March 30, 2020, is CAD 200,000 per year. The company believes, from past experience, that it will be able to leverage the research expenditures with matching scientific grants pursuant to programs of various branches of government. The company will be responsible for the filing of patents relating to this research and will own such patents if and when issued. The company has agreed to make payments to the University upon filing of each patent, when each patent is issued, after first commercial sale and when gross sales reach CAD 1,000,000. There are no ongoing royalty payments, relating to the use of the patents. The work plan may be extended and modified to achieve best outcomes which may include delegating specific research areas of research work that require additional technologies to appropriate providers and engaging research collaborators to extend the research into additional areas of benefit to the company.