Mr. Ian Campbell reports

NEURAL PORTFOLIO COMPANY HANF.COM REPORTS STRONG FISCAL 2025 RESULTS WITH 58% REVENUE GROWTH AND POSITIVE NORMALIZED OPERATING INCOME

Neural Therapeutics Inc. has released its preliminary unaudited financial results for Hanf.com for the fiscal year ended Dec. 31, 2025.

Neural currently holds a 30.75-per-cent ownership interest in CWE, following completion of a strategic investment and option agreement on May 26, 2025, providing Neural with indirect exposure to CWE's expanding European operations (see Neural press releases dated Aug. 13, 2025, and May 28, 2025).

CWE fiscal 2025 highlights

Preliminary, unaudited, management-prepared financial information for the year ended Dec. 31, 2025, indicates continued strong revenue growth of approximately 58 per cent year over year, with estimated total revenues of approximately $11.2-million (7.1 million euros), compared with $7.1-million in fiscal 2024.

Gross margin for fiscal 2025 is estimated at approximately 35 per cent, compared with approximately 58 per cent in fiscal 2024, reflecting a higher proportion of sales generated through lower-margin wholesale distribution channels, as previously disclosed in Neural's Oct. 8, 2025, press release. This channel shift aligns with Hanf.com's strategy to scale its national footprint and broaden market penetration across Germany. Selling, general and administrative expenses decreased modestly to approximately 38 per cent of revenue, compared with 40 per cent in fiscal 2024, reflecting improved operating leverage and economies of scale achieved on higher sales volumes.

On a normalized basis, CWE expects to report positive operating income for fiscal 2025. Reported operating results are expected to include a net loss, primarily attributable to non-recurring debt settlement transactions and go-public professional fees, completed in the fourth quarter of 2025 of approximately $600,000. These transactions were non-cash in nature and did not impact CWE's operating cash flows. Excluding these items, operating profitability is expected to remain positive as Hanf.com continues to expand its retail and wholesale presence across Germany, with an expected normalized operating income of approximately CAS $280,000 for the fiscal 2025.

These preliminary results are based on internal management accounts and have not yet been reviewed or audited. The company expects to include audited financial statements of CWE for the year ending Dec. 31, 2025, into the management information circular be prepared in connection with the planned shareholders meeting in 2026.

CEO commentary

Ronnie Jaegermann, chief executive officer of CWE, commented: "Fiscal 2025 was a pivotal year for CWE as we delivered approximately 58-per-cent revenue growth while maintaining positive normalized operating income. Our expansion into wholesale distribution broadened Hanf.com's national footprint and strengthened brand visibility, even as we continued to exercise disciplined cost control. With an expanding store network, growing wholesale partnerships and new exclusive product lines, we believe CWE is well positioned to continue scaling profitably. As consumer demand for high-quality, wellness-oriented products continues to grow across Europe, we remain focused on execution, operational efficiency and building long-term value for our shareholders."

Neural shareholders' meeting update

The company also advises that the previously announced shareholders' meeting has been recently cancelled and will be rescheduled in order to allow additional time to complete and finalize the related disclosure materials. The meeting is expected to seek shareholder approval of certain matters, including the potential exercise of the Series B option and related ancillary transactions, all of which remain subject to applicable regulatory approvals. As disclosed in Neural press releases dated Aug. 13, 2025, and May 28, 2025), pursuant to Series B option, Neural has a right, but not the obligation to acquire the balance 69.25-per-cent interest in CWE upon satisfaction of certain conditions by both parties. The company intends to provide further details regarding the timing and matters to be considered at the shareholders' meeting in future press releases as arrangements become more definitive.

About Neural Therapeutics Inc.

Neural Therapeutics is a leader in ethnobotanical drug discovery focused on developing therapeutic drugs for mental health conditions related to substance use disorders, including alcohol and opioid dependence. The company's innovative drug development strategy involves the use of subhallucinogenic doses of mescaline extract, with the objective of enhancing safety and scalability while maintaining therapeutic efficacy.

On May 26, 2025, Neural entered into a strategic investment and option agreement with CWE European Holdings Inc., a leading CBD and hemp retailer in Germany operating under the Hanf.com brand, pursuant to which Neural may acquire up to 100 per cent of CWE through a multistage transaction. The transaction is intended to expand Neural's commercial footprint in Europe while preserving its core focus on drug discovery and mental health innovation.

On Aug. 12, 2025, Neural and CWE completed the first stage of the transaction, pursuant to which Neural acquired a 30.75-per-cent ownership interest in CWE. Neural and CWE continue to work collaboratively toward subsequent stages of the transaction and will provides updates as material developments occur.

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