An anonymous director reports

MEDIPHARM LABS PROVIDES UPDATE ON GERMAN CANNABIS LEGALIZATION

Medipharm Labs Corp. has provided an update on German cannabis legalization.

Germany's upper house, the Bundesrat (made up of federal state delegates), passed legislation to partially legalize cannabis starting April 1, 2024. The new law will allow adults to cultivate, possess and store cannabis for their personal consumption. The law also removes medical cannabis from Germany's narcotic list, a change that is expected to remove barriers to patient access.

This historic change is a significant positive step in removing the stigma related to medical cannabis. The removal of cannabis from narcotic status will open the opportunity for more physicians, pharmacies and patients to participate in the current German medical cannabis market.

Medipharm sees this having a positive impact on its already-robust German business.

Summary of Medipharm Labs' business operations in Germany

Beacon Medical GMBH

Beacon Medical is a wholly owned subsidiary of Medipharm Labs. Located in Potsdam, the business holds a suite of German GMP (good manufacturing practice) medical cannabis licences to import, wholesale and distribute GMP cannabis products.

Beacon Medical is a medical product brand with distribution through German partners Adrex Pharma, Cansativa and Medical Pharma Resource.

Thus far in 2024, Medipharm has increased the German product approvals under the Beacon Medical brand from five to 14.

Turnkey medical cannabis supply

The company has partnered with STADA, a large global consumer health and pharmaceutical company, as STADA's exclusive medical cannabis supplier. Medipharm manufactures and distributes medical cannabis products to STADA customer pharmacies.

STADA currently holds the No. 2 market share in medical cannabis oil sales.

Business-to-business supply

Starting with the company's first contract in 2019 with long-term partner Adrex Pharma, Medipharm supplies APIs (active pharmaceutical ingredients) and end products to various German-based companies.

This business line also includes GMP services, where Medipharm Labs assists domestic and international companies in making their products compliant in the company's GMP facilities for the German export market.

The recent launch of our D9 THC (tetrahydrocannabinol) isolate supply business (a monographed pharmaceutical commonly referred to as Dronabinol) has expanded 2024 sales, unlocking new distribution channels in Germany.

All of these German medical cannabis activities are supported by the Company's manufacturing sites in Barrie and Napanee, Ont., which each maintain GMP licensing permitting export to Germany and other international jurisdictions.

The company thanks the cannabis advocates and federal government in Germany for leading this triumphant charge.

About Medipharm Labs Corp.

Founded in 2015, Medipharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a good-manufacturing-practice-certified facility with ISO (International Organization for Standardization) standard built clean rooms. Medipharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. Medipharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, Medipharm Labs received a pharmaceutical drug establishment licence from Health Canada, becoming the only company in North America to hold a commercial-scale domestic good manufacturing practice license for the extraction of multiple natural cannabinoids. This GMP licence was the first step in the company's current foreign drug manufacturing site registration with the U.S. Food and Drug Administration.

In 2023, Medipharm acquired Vivo Cannabis Inc. which expanded Medipharm's reach to medical patients in Canada through Canna Farms medical e-commerce platform and in Australia and Germany through Beacon Medical Pty. and Beacon Medical GmbH. This acquisition also included Harvest Medical Clinics in Canada, which provides medical cannabis patients with physician consultations for medical cannabis education and prescriptions.

The company carries out its operations in compliance with all applicable laws in the countries in which it operates.

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