Mr. Nicholas Kadysh reports

PHARMALA BIOTECH RECEIVES EXPORT PERMIT TO SHIP GMP LANEO MDMA TO THE UNIVERSITY OF SYDNEY

Pharmala Biotech Holdings Inc. has received an export permit for the shipment of its allotment of GMP (good manufacturing practices) LaNeo MDMA (3,4-methylenedioxy-N-methamphetamine) to the University of Sydney. The shipment will mark the completion of the company's $125,000 (U.S.) contract with the University of Sydney, which was previously announced on Aug. 31, 2022.

"Pharmala continues to support its research clients with the critical supply of GMP LaNeo MDMA, enabling them to perform their groundbreaking clinical research in a wide range of therapeutic areas. We are looking forward to seeing the outcomes of the trial by the University of Sydney, when published -- and to supporting further research by the principal investigators in the future," said Nick Kadysh, chief executive officer of Pharmala. "We also look forward to delivering more shipments to our partners around the world soon, in particular in Australia, where the Therapeutic Goods Agency recently announced regulatory changes that will allow for MDMA and psilocybin treatments to be prescribed under the authorized prescriber scheme, the start of which is only two weeks away."

Suspension of private placement

The company also announces that, as a result of the company's fulfilment of its contract with the University of Sydney constituting a material change under applicable securities law, it is discontinuing its previously announced non-brokered private placement, which was to consist of up to 16,666,666 units of the company at a price of 30 cents per unit for aggregate gross proceeds of up to $5-million.

The suspension of the LIFE (listed issuer financing exemption) offering is required under National Instrument 45-106 -- Prospectus Exemptions if there is a material change in the course of an offering completed under the listed issuer financing exemption. If the company chooses to recommence the LIFE offering, then it will file an amended and restated offering document, and issue a corresponding news release.

About Pharmala Biotech Holdings Inc.

Pharmala Biotech Holdings is a biotechnology company focused on the research, development and manufacturing of MDXX-class (substituted methylenedioxyphenethylamines) molecules, including MDMA. Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, and to develop novel drugs in the same class. Pharmala is the first publicly traded company to manufacture clinical-grade MDMA. Pharmala's research and development unit has completed proof-of-concept research into ALA-002, Pharmala's lead drug candidate. Pharmala is a regulatory-first organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators.

We seek Safe Harbor.