Mr. Guy Chamberland reports

TETRA BIO-PHARMA SIGNS DEFINITIVE COMMERCIALIZATION AGREEMENT FOR CAUMZ IN MEXICO WITH ALTERNAVIDA S.A.

Tetra Bio-Pharma Inc. has signed a definitive co-development and commercialization agreement with Alternavida SA de CV for the clinical development, marketing and distribution of Caumz in Mexico.

"As the opioid crisis spreads from North America to other countries like Mexico, controlling the global opioid epidemic has become one of the health challenges of our decade. Alternavida's vision to open clinical sites for trials with Caumz, and seeking drug approval, testifies to its leadership as a pharmaceutical company dedicated to the health and wellness of Mexicans," commented Dr. Guy Chamberland, chief executive officer and chief regulatory officer of Tetra Bio-Pharma. Dr. Chamberland added: "We have had discussions with numerous potential partners, but Alternavida had a clear interest in joining us in developing and bringing Caumz to market. Our relationship will grow over the years and we look forward to working with this forward-thinking company as we join forces in Mexico."

Under terms of the agreement, Alternavida will be a clinical research collaborator for the clinical development of Caumz, will fully finance two clinical trial sites in Mexico for the Serenity and fibromyalgia trials, and will be responsible for registering and commercializing Caumz in Mexico.

The clinical trial sites will be fully compliant with Food and Drug Administration (FDA) and Health Canada requirements and are expected to be up and running in early 2020. The financing of the two sites represents a cost saving of $10-million and potentially allows Tetra to accelerate the enrolment process and ultimately the time required to complete the phase 2 (fibromyalgia) and phase 3 (Serenity) trials as the company pursues approvals in the United States and Canada. The cost savings is based on clinical trial costs, such as investigator and site costs and patient interventions and assessments, as well as study monitoring costs.

Additionally, Tetra will also receive a one-time licence fee of $125,000, as well as royalties on Caumz sales in Mexico of 10 per cent in year 1, 12.5 per cent in year 2 and 15 per cent in year 3 to year 15.

Finally, Alternavida has been granted a right of first refusal to commercialize Caumz in eight additional countries, including Colombia, Ecuador, Chile, Panama, Costa Rica, Honduras, Peru and the Dominican Republic.

"We are thrilled to have signed this clinical development and commercialization agreement with Alternavida, as it provides non-dilutive funding for two clinical sites, as well as a solid commercial footprint in Mexico, with the potential to expand to eight additional territories in Latin America," stated Dr. Chamberland. "Tetra will now be operating clinical sites in three countries -- Mexico, Canada and the U.S., boosting our enrolment potential."

About Tetra Bio-Pharma Inc.

Tetra Bio-Pharma is a biopharmaceutical leader in cannabinoid-based drug discovery and development with a Health Canada-approved and FDA-reviewed clinical program aimed at bringing novel prescription drugs and treatments to patients and their health care providers.

We seek Safe Harbor.