Mr. John Miller reports

THC BIOMED AGREES TO EXPORT CANNABIS TO MAJOR GERMAN DISTRIBUTOR

THC Biomed Intl Ltd. has entered into an agreement to export at least 800 kilograms (kg) of cannabis over the next two years to a prominent distributor of pharmaceutical cannabis products in Germany and other parts of Europe.

This agreement marks a significant milestone in THC Biomed's expansion into the European market.

Under the terms of the agreement:

• THC Biomed will supply stabilized dried cannabis flowers cultivated under GACP-Plus (good agricultural and collection practices) standards to the distributor for distribution in Germany and the European economic area (EEA).
• The agreement includes two exclusive strains and the distributor will have exclusive distribution rights for these strains in Germany.
• The distributor commits to a minimum annual order quantity of 400 kg per year, split across shipments and strains, and based on mutually agreed forecasts.

Key features of the agreement:

• Quality assurance: THC Biomed will provide a certificate of analysis (CoA) for each shipment, ensuring compliance with stringent quality standards outlined in the agreement.
• Delivery terms: Shipments will be delivered DAP (Incoterms 2020) to a GMP-licensed (good manufacturing practice) facility in the EEA, with THC Biomed bearing all risks and costs of transport.
• Payment: Payments from the distributor will be split into two instalments: 50 per cent preshipment and 50 per cent postinspection.
• Defect and delay management: The distributor retains the right to claim credits or cancel orders in case of delays or product defects, ensuring reliability and accountability.
• Regulatory compliance: Both parties will ensure adherence to all necessary licences, permits, and regulatory requirements for the import and export of cannabis products.

John Miller, chief executive officer of THC Biomed, stated: "We are thrilled to partner with this distributor to bring our cannabis products to the European market. This agreement underscores our commitment to quality, reliability and growth of the business."

The agreement has a two-year term and is set to automatically renew for six-month periods after that, unless terminated by either party with prior notice.

About THC Biomed Intl Ltd.

THC Biomed is a leading cannabis company dedicated to producing high-quality, diverse cannabis products. With a focus on innovation and consumer satisfaction, THC Biomed strives to meet the evolving needs of cannabis enthusiasts through continuous research, development and product excellence.

We seek Safe Harbor.