Mr. Marc Lustig reports

BENUVIA AND PHARMACIELO ANNOUNCE STRATEGIC PARTNERSHIP TO MANUFACTURE CGMP PHARMACEUTICAL-GRADE CBD ISOLATE AND RELATED PRODUCTS

Benuvia Operations LLC and Pharmacielo Ltd., the Canadian parent of Pharmacielo Colombia Holdings SAS, have entered into a strategic partnership to produce cGMP (current good manufacturing practice) pharmaceutical-grade active pharmaceutical ingredients (APIs) for the global market, including Brazil, Australia, Europe and the United States. Benuvia is an FDA (Food and Drug Administration)-registered, DEA (Drug Enforcement Administration)-licensed and cGMP-certified leader in pharmaceutical cannabinoids, and Pharmacielo Colombia is a cultivator, producer and global supplier of dried flower and medicinal-grade cannabis extracts.

As part of the strategic partnership, Pharmacielo will be responsible for the cultivation of cannabis and hemp under good agricultural and collection practice (GACP) conditions in Colombia, and Benuvia will leverage its FDA-registered, and DEA-licensed (schedules I to V) cGMP development manufacturing facility in Austin, Tex., to produce final products. To both companies' knowledge, this is an industry-first partnership to provide seed-to-pharma products globally, where cGMP and its European equivalent, EU-GMP, certification are must-haves. This model will emphasize quality and compliance, as well as sustainable and ethical sourcing, and represents a significant improvement in controlling quality throughout the entire supply chain.

The partnership extends beyond mere manufacturing; it encompasses a shared vision to explore and offer the market innovative finished dose form services. This initiative will focus on producing cGMP and EU-GMP compliant pharmaceutical products, a step forward in meeting the growing global demand for high-quality, reliable medicinal cannabis products, produced under strict standards.

Management commentary

"Our collaboration with Pharmacielo represents a significant milestone in our commitment to excellence in pharmaceutical development," said Darwin Richardson, chief executive officer of Benuvia. "This partnership aligns perfectly with our mission to deliver superior-quality products while adhering to the highest manufacturing standards, and allows Benuvia to provide our customers with more sourcing options beyond synthetic APIs. With these additional capabilities, Benuvia and Pharmacielo customers can develop drug product formulations for their APIs for both clinical and commercial purposes."

Marc Lustig, chairman and CEO of Pharmacielo, added: "Pharmacielo has the genetics library, expertise and production capacity to design and deliver tailored, pharma-quality cultivars for the creation of APIs, at scale. We expect this partnership with Benuvia to enable us to access additional customer opportunities while expanding our product shelf with additional cGMP final products."

This partnership is poised to set new standards in the pharmaceutical industry, offering supply chain security and quality in the medicinal cannabis sector. Both Benuvia and Pharmacielo are dedicated to harnessing the potential of cannabinoids for therapeutic purposes, ensuring that products are not only effective but also manufactured responsibly and sustainably, to cGMP and EU-GMP standards.

Interest shares

Today, Pharmacielo also announced that it intends to issue, subject to the approval of the TSX Venture Exchange, 4,179,670 common shares of Pharmacielo, at an effective price of 19.25 cents per interest share, in satisfaction of an aggregate of $804,590 in semi-annual interest payments due to holders of 11 per cent secured debentures of the company, due Dec. 24, 2024, and June 30, 2026. The effective price of the interest shares was determined by dividing the cash interest otherwise payable by the number of shares issuable under each debenture, as determined on Dec. 1, 2023, in accordance with the terms of the debentures.

The interest shares are subject to the balance, if any, of the four-month statutory hold period applicable to the relevant debenture under Canadian securities laws.

About Pharmacielo Ltd.

Pharmacielo is a global company, headquartered in Canada, with a focus on ethical and sustainable cultivating, processing and supply of all natural, pharmaceutical-grade medical dried cannabis flower and cannabis products to large channel distributors. Pharmacielo's principal (and wholly owned) subsidiary is Pharmacielo Colombia Holdings SAS, headquartered at its cultivation and processing centre located in Rionegro, Colombia.

The board of directors and executive team of Pharmacielo are composed of a diversely talented group of international business executives and specialists with relevant and varied expertise. Pharmacielo recognized the significant role that Colombia's ideal location plays in building a sustainable business in the medical cannabis industry, and the company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

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