Mr. Ilan Sobel reports

BIOHARVEST SCIENCES ANNOUNCES NEW CAMPUS FOR BOTANICAL SYNTHESIS CDMO AND EXPANSION OF MANUFACTURING CAPACITY

Bioharvest Sciences Inc. has signed two agreements: an equipment purchase agreement for 12 state-of-the-art GMP (good manufacturing practice) clean rooms, and a long-term lease agreement for a new 80,000-square-foot facility in Yavne, Israel. The new facility houses industry leading clean rooms, as well as builtout laboratory space, offices and additional space capable of supporting a new 50-ton manufacturing facility.

• 80,000-square-foot (7,500-square-metre) property includes 12 GMP clean rooms, laboratory and office space, and can accommodate expanded 50-ton manufacturing facility;
• New production technologies implemented at this campus will serve to optimize the planned United States-based 150-ton manufacturing facility.

The commercial term of the lease is for 78 months at a cost of 20.2 million Israeli shekels ($5.5-million (U.S.)), subjected to changes in the Israeli consumer price index over the entire term. The equipment purchase price is 13 million Israeli shekels ($3.6-million (U.S.)). All equipment for the clean rooms has been installed and is ready for immediate operational use.

This transaction gives Bioharvest immediate access to the required state-of-the-art clean rooms and builtout laboratories to accommodate the anticipated growth of the CDMO business unit. The facility has enough additional space to avail the building of a new 50-ton manufacturing facility which is expected to be operational in H2 of 2025 to meet the forecasted demand of the products business unit as well as to satisfy the initial large scale manufacturing requirements of CDMO customers. This new manufacturing facility will utilize upgraded equipment and technologies which the company has been developing, representing the second generation of the botanical synthesis manufacturing process, designed to further improve production yields and efficiencies.

The company expects that Rehovot facility research and development and corporate administrative offices will be moved to the new Bioharvest campus in the next six to nine months. In the future, this new Campus will house all R&D functions and the addition of a new manufacturing facility in 2025. It will also allow CDMO customers to experience the complete end-to-end botanical synthesis development and manufacturing service under one roof. The company anticipates that new technologies successfully implemented in this new campus will optimize design of the third-generation production facility, which is expected to be built in the United States, with a 150-ton capacity.

Chief executive officer Ilan Sobel stated: "We are pleased to announce our plans for a new corporate campus, which will consolidate our corporate, R&D and production footprints under one roof. This is a significant milestone that will allow us to support the anticipated growth of our CDMO services business while concurrently building the manufacturing capacity necessary to support the rapid growth of our products business.

"We were able to secure the facility lease and equipment purchase agreements on excellent terms. I look forward to continuing our steady cadence of operational execution in the months ahead as we strive to leverage the power of the plant kingdom to transform the pharmaceutical, cosmeceutical, nutraceutical and food nutrition industries," concluded Mr. Sobel.

About Bioharvest Sciences Inc.

Bioharvest Sciences is a leader in botanical synthesis, leveraging its patented technology process to grow the active ingredients in plants without the need to grow the underlying plant. Bioharvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals: as a contract development and production organization (CDMO) on behalf of customers seeking complex molecules; and as a creator of proprietary nutraceutical health and wellness products, including dietary supplements.

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