Veteran rail executive with 25 years of senior commercial relationships across North America's Class I railroads joins a platform that enables real-time identification of probable drug use from a camera without requiring blood, breath, or urine testing.
Toronto, Ontario--(Newsfile Corp. - April 29, 2026) - QScreen AI Inc. (CSE: QAI) (OTC Pink: PMEDF) (FSE: 3QP), an innovator fusing Quantum-AI technologies to transform health screening, today announces the appointment of José Humberto "Beto" Vargas García as Strategic Advisor. Mr. Vargas spent over 25 years in senior commercial roles across North American rail and most recently as Vice President at Union Pacific, leading a commercial portfolio of USD$2.8 billion with average annual growth of 9%, where he sat on the Board of Directors of Ferromex and chaired its Operations Committee. He was introduced to the Company during the Canada-Mexico trade mission earlier this year. The Company also announces a change of auditor, described below.
The Problem Mr. Vargas Is Here to Solve
Every Class I railroad in North America runs mandatory drug and alcohol testing under Federal Railroad Administration regulations. The testing has one fundamental problem: it detects past use, not present impairment. Their legal teams know this and it has been an issue in the industry since cannabis legalization. The Drug Screening Market size was valued at USD $9.76 billion in 2025 and is likely to cross USD $40.18 billion by 2035, expanding at more than 15.2% CAGR during the forecast period. In the year 2026 itself, the industry size of drug screening is assessed at USD $11.1 billion.1
The QAI Platform reads physiological signals from a standard camera including PERCLOS, blink rate, head movement, pupil reactivity and identifies the probable substance a person has consumed in real time. No sample required and therefore no lab visit and no wait times. The system generates a documented, time-stamped output before each shift begins, directly meeting the requirements of the transportation industry.
Mr. Vargas has deep relationships across the North American rail ecosystem and understands exactly which stakeholders need to be engaged, making this appointment a meaningful milestone for the company.
About Beto Vargas
Mr. Vargas spent the last five years as Vice President at Union Pacific, running commercial operations and sitting on the Ferromex board where he led the Operations Committee. Before that, eight years at Werner Enterprises as Intermodal and Commercial Director, where he managed a cross-border portfolio of over USD$500 million. Earlier, seven years at Ferromex where he reached Associate Vice President of Intermodal and launched the InterPacífico Service. From 2019 to 2023, he served as President of the Asociación Mexicana de Transporte Intermodal, the principal rail industry body in Mexico. He has spent 25 years in rooms where the decisions about rail safety, workforce compliance, and commercial partnerships get made.
Dr. Rahul Kushwah, COO of QScreen AI Inc., stated: "The rail sector has a drug testing problem that has not been solved in eight years. Beto spent the last five of those years running commercial operations at Union Pacific and sitting on the Ferromex board. He does not need to explain QScreen to the people who matter in this industry as he has been in business with them for decades. This appointment gives us invaluable and unprecedented access to decision makers."
Where the Company Stands
QScreen AI has completed its QAI Platform, the only system that identifies probable substance consumed in real time from a standard camera, while simultaneously running 13 validated clinical instruments including CIWA-Ar, COWS, and C-SSRS, in under seven minutes with no hardware and no IT project. The Company holds a granted US patent on physiological impairment detection.
The Company is pursuing its first signed evaluation agreements across three markets:
US Correctional Health - Approximately 4,800 facilities processing 7.9 million jail admissions annually2. Global Frontier Advisors L.P., led by Lieutenant General Michael S. Groen (Ret.), former Director of the Pentagon's Joint Artificial Intelligence Center, is advancing discussions with target facilities. GFA was engaged by the Company in February 2026.
National Defence and DoD - Approximately 4,800 US military sites worldwide3. GFA advancing engagement across personnel readiness and workforce health.
Rail and Transportation - Approximately 130,000 federally regulated safety-sensitive rail workers across North American Class I railroads subject to FRA mandatory impairment testing4. Mr. Vargas leading commercial engagement.
¹ Drug Screening Market Outlook. https://www.researchnester.com/reports/drug-screening-market/4891 . September 2025
2 Bureau of Justice Statistics, Jails Report Series: 2024 Preliminary Data Release (December 2025); Prison Policy Initiative, Mass Incarceration: The Whole Pie 2025.
3 US Department of Defense Base Structure Report; USAFacts analysis of DoD installation data (2024).
4 Federal Railroad Administration, Railroad Safety Statistics Annual Report; Association of American Railroads, Railroad Facts 2024.
Change of Auditor
The Company announces that it has changed its auditors from Kreston GTA LLP (the "Former Auditor") to Bassi & Karimjee LLP (the "Successor Auditor"). The Former Auditor resigned effective April 13, 2026. The Successor Auditor was appointed on April 13, 2026, until the next annual shareholders' meeting.
There were no reservations or modified opinions in the Former Auditor's reports during their tenure. There are no reportable events including disagreements, consultations, or unresolved issues as defined in NI 51-102 between the Company and the Former Auditor. The board of directors and audit committee approved both the resignation and the appointment. The Notice of Change of Auditor and required letters have been filed on SEDAR+ at www.sedarplus.ca.
About QScreen AI Inc.
QScreen AI Inc. (CSE: QAI) (OTC Pink: PMEDF) (FSE: 3QP) is an emerging provider of rapid health screening and remote patient care solutions globally. The Company's Smarthealth AI stations are powered by a proprietary artificial intelligence and use multispectral cameras to analyze physiological data patterns and predict a variety of health issues including 19 physiological vital parameters, impairment by drugs or alcohol, fatigue, and various mental illnesses. QScreen AI's proprietary remote patient care platform empowers medical professionals with a suite of AI-powered tools to improve patient health outcomes.
For more information visit www.q-screen.ai
Contact
Dr. Rahul Kushwah, COO
Rahul.kushwahphd@gmail.com
(647) 889 6916
Caution Regarding Forward-Looking Information:
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of the Company. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances. The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons", as such term is defined in Regulations under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.
QScreen AI screening tools provide risk assessment and decision support only. They are not diagnostic medical devices and are not intended to replace professional medical judgment.
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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Source: QScreen AI Inc.
