BIOHARVEST SCIENCES INC. REPORTS RECORD SALES RESULTS IN Q3 2022 WITH STRONG MOMENTUM BUILDING ON ALL FRONTS

Mr. Ilan Sobel reports

Bioharvest Sciences Inc. has released Q3 2022 sales orders for its flagship Vinia product, which reached a record high of $1.71-million (U.S.), representing 145-per-cent, year-over-year growth and 81-per-cent growth compared with Q2 2022.

• Vinia sales orders reached a record high of $1.71-million (U.S.) representing 145-per-cent growth compared with Q3 2021 and 81-per-cent growth compared with Q2 2022.
• Q3 sales in the United States delivered three times the sales of Q2 2022 and crossed the $1-million (U.S.) mark.
• Strong sales momentum and increase in subscribers support guidance to achieve $5-million (U.S.) to $7-million (U.S.) in sales orders in 2022 and to be cash flow positive in 2023.
• A unique cannabis composition (with analysis performed by an independent third party certified laboratory) will be announced on Oct. 25.

Following the company's mid-August scale up of its marketing activities, Q3 sales orders in the U.S. reached a record $1.08-million (U.S.) (350-per-cent growth over Q3 2021 and 200-per-cent growth over Q2 2022). This included an impressive quarter on quarter increase of five times in the number of new customers driven by the health benefits that Vinia delivers and the strong clinical and scientific foundations of the product. U.S. Vinia sales metrics continue to improve and are building a healthy and prosperous Nutraceuticals business. For example: In the third quarter, 85 per cent of total Vinia customers who purchased on Vinia.com, are subscription-based; 90 per cent of active subscribers are for three months or greater. This demonstrates customer commitment to the Vinia brand and represents a significant customer lifetime value. Cost of customer acquisition in Q3 2022 declined by more than 50 per cent compared with Q2 2022, demonstrating the proficiency of the marketing team to skilfully employ the most efficient media mix (including TV (television), Google and Facebook) with consumers. In Q4, national radio and other channels will be tested to assess their ability to further improve overall communication efficiency. Vinia continues to achieve a best-in-class verified customer rating of 4.8 out of 5 with over 830 verified reviews, demonstrating Vinia's ability to make a significant foundational positive impact to consumers' lives.

The Israeli market continues to demonstrate increased consumer adoption of Vinia and delivered a record $627,000 (U.S.) (39-per-cent growth over Q3 2021 and 10-per-cent growth from Q2 2022). Total new customers in Israel grew 19 per cent in Q3 2022 over Q2 2022. Vinia has a strong customer base in Israel and is becoming a household recognized brand. Average dollar spend per transaction reached an all-time high of $210 (U.S.) per transaction in September.

Scott McCune, founder of McCune Sports, former SVP (senior vice-president) in the Coca-Cola Company (leading Coca-Cola's global strategies and organizations for integrated marketing) and member of the board of advisers of Bioharvest, said: "These results are very impressive especially when you look at how the company is building best-in-class commercial and marketing capabilities for Vinia, which is the first of many products they will bring to North America. Decreasing the cost of acquisition and the fast scaling of the business are encouraging achievements as they look to build a highly profitable business and world-class brand."

In this quarter, Bioharvest has made significant progress in the cannabis vertical. The company continues to build breakthrough capabilities in eliciting cannabinoids in its bioreactors.

On Oct. 25, Bioharvest plans to announce the details of its unique composition (analysis performed by an independent third party certified laboratory) and will discuss them during the company's shareholder update on that same day. Dr. Yochi Hagay, the co-founder and CTO (chief technology officer) who will attend this update call, stated, "It will be a special pleasure for me to share our R&D [research and development] achievements with our shareholder partners, as our team continues to make breakthroughs in the plant cellular biology field."

Among the company's achievements in this quarter, as recently announced and in recognition of the sustainability impact of Bioharvest's Bio Plant Cellicitation technology, the Business Intelligence Group awarded the company with the prestigious Sustainability Leadership award.

"I am beyond pleased with our strong Q3 results as they validate the strength of our business model and of the critical capabilities we have built in both the nutraceutical and cannabis verticals," said chief executive officer Ilan Sobel, adding: "These Q3 Sales results and our ongoing breakthroughs in the Cannabis development represent significant achievements in our Biotech journey. The record results of Q3 show that we are on the right path for healthy growth and to achieve our financial goals, which include becoming cash flow positive by the end of 2023."

Q3 shareholder update Oct. 25, 11 a.m. PST/2 p.m. EST

All shareholder partners, investors, media, and members of the scientific community are invited to register.

The presentation will be approximately 45 minutes, followed by a live question and answer session. All registrants will be e-mailed a recording of the session.

About Bioharvest Sciences Inc.

Bioharvest Sciences is a fast-growing Biotech firm listed on the Canadian Securities Exchange. Bioharvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. This technology is economical, ensures consistency and avoids the negative environmental impacts associated with traditional agriculture. Bioharvest is currently focused on nutraceuticals and the medicinal cannabis markets.

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