Mr. Nicholas Kadysh reports

PHARMALA BIOTECH PROVIDES CORPORATE UPDATE: CHANGE OF AUDITOR, RETENTION OF WATERTOWER RESEARCH AND OAK HILL

Pharmala Biotech Holdings Inc. has provided three corporate updates.

1. Change of auditor

The company determined that it was in its future best interest to pursue engaging an auditor which is capable of conducting a U.S. public company accounting oversight board mandate. The mandate was offered to Clearhouse LLP, which advised the company that it was unable to accept the engagement.

Following a request for proposals from multiple audit firms, the company decided to replace the predecessor auditor with Davidson & Company LLP.

On Sept. 14, 2026, the board of directors of the company passed a resolution to appoint Davidson & Company and accepted the resignation of the predecessor auditor.

The company extends its gratitude to Clearhouse for its past service and looks forward to working with Davidson & Company.

2. Water Tower Research LLC

On April 23, 2026, Pharmala entered into a subscription service agreement with Water Tower Research, a wholly owned subsidiary of alphaDIRECT Group LLC.

Under the agreement, WTR will provide Pharmala with company research, investor engagement, and stakeholder communication and intelligence programs through the production of research reports and supporting content distributed through WTR's proprietary digital delivery infrastructure.

Pharmala agreed to pay $58,000 for access to the subscription services, which commenced on May 15, 2026, upon execution of this agreement. This agreement has a one-year term ending on May 15, 2027. There is no equity-linked compensation for WTR under the terms of the agreement.

In connection with the subscription services, Pharmala will receive:

• Continuing analyst support and coverage of clients, which may include but are not limited to:
  • Initiation of coverage fireside chats -- video update notes;
  • Management series reports;
  • Quarterly earnings notes;
  • WTR's small-cap spotlight podcast;
  • Industry note inclusion;
  • Expert series -- video;
  • WTR Symposium series events;
  • Symposium series recap notes.

WTR shares content through its digital delivery infrastructure, which includes its own website, social media and direct mailing lists.

3. Oak Hill Financial Inc.

On April 21, 2026, Pharmala signed a contract with Oak Hill. Oak Hill will provide business and capital market advisory services, including raising the company's profile with the investment community and assisting dissemination of investor presentation materials.

The initial term of the agreement was two months. Following the initial term, the agreement may be extended on a month-to-month basis at the sole discretion of the company. Upon renewal, the monthly fee will remain the same. Either party may terminate the agreement after the initial term upon five business days written notice. The company will pay Oak Hill a monthly advisory fee of $12,000 plus preapproved out-of-pocket expenses.

There are no performance factors under the agreement with Oak Hill, and Oak Hill will not receive any common shares or other securities of the company as compensation. Oak Hill has no present interest, directly or indirectly, in the company or its securities, or any right or intent to acquire such an interest. Oak Hill is an arm's-length party to the company.

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 developing 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 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 psychedelic industry will only be achieved through excellent relationships with regulators.

We seek Safe Harbor.