Mr. Nicholas Kadysh reports

PHARMALA ISSUES Q2 FINANCIAL STATEMENTS AND GRANTS OPTIONS

Pharmala Biotech Holdings Inc. has publicly filed its financial and operational results for the period ended Feb. 28, 2026. The company's full set of unaudited condensed interim consolidated financial statements for the quarter and accompanying management's discussion and analysis can be accessed by visiting the company's website and its profile page on SEDAR+.

"Pharmala's financial position continues to benefit from an operational focus by the company's management," said Nick Kadysh, founding chief executive officer. "Pharmala continues to be the only psychedelics company that has worked to understand and continually improve commercial implications, in Australia and beyond; as psychedelics advance rapidly towards commercialization globally, this operational know-how will become only more valuable."

Financial highlights:

• Customer deposits have continued to grow by $310,719 through Q2 (second quarter), offset by recognition of revenue of $181,492. These deposits, generally being 50 per cent of the total contract value, can be recognized along with the remaining revenue when the related product is shipped, which for many customers requires the issuance of their clinical trial and/or import permits from relevant regulatory bodies.
• Revenues for the three and six months ended Feb. 28, 2026, were $220,584 and $487,024, compared with $145,657 and $202,954 for the three and six months ended Feb. 28, 2025.
• Net loss and comprehensive loss for the three and six months ended Feb. 28, 2026, were $337,696 and $747,391, compared with $810,766 and $1,289,875 for the three and six months ended Feb. 28, 2025.
• Cash used in operating activities was $366,396 for the six months ended Feb. 28, 2026, compared with $491,721 for the six months ended Feb. 28, 2025.

"Through Q2 2026, we have continued to see increased demand for our product, culminating in a steady increase in customer deposits," said Will Avery, chief financial officer, Pharmala Biotech. "With our proven supply chain in the U.S. and Australia, we have been able to convert customer deposits into revenue at an improved rate."

Issuance of options

Pharmala has issued options to board members and officers, as detailed in the attached table. The options are issued subject to a vesting period, such that every three months 25 per cent of the allotment will be vested, such that the options shall be fully vested on the 12-month anniversary of the date of grant, which is April 20, 2026. The options have a fixed exercise price per share of 10 cents (subject to adjustment in accordance with the terms of the plan and/or stock option agreement). All vested but unexercised options shall expire and cease to be of effect on April 20, 2031.

Corporate leadership change

The company regretfully announces that Ali Taghva will transition out of his role as chief commercial officer to focus on other projects. Mr. Taghva will leave the role of chief commercial officer effective immediately and will fully transition out of the company by July, 2026.

About Pharmala Biotech Holdings Inc.

Pharmala is a biotechnology company focused on the research, development and manufacturing of MDXX class molecules, including MDMA. Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, as well as commercial sales in selected jurisdictions, and to develop novel drugs in the same class. Pharmala is the only company currently provisioning clinical-grade MDMA for patient treatments outside of clinical trials. Pharmala's research and development unit has completed proof-of-concept research into several IP (intellectual property) families, including ALA-002, its 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.