Mr. Hugh Rogers reports

XPHYTO THERAPEUTICS SIGNS TERM SHEET FOR GERMAN CANNABIS DISTRIBUTION

Xphyto Therapeutics Corp. has signed a term sheet with a major cannabis grower and processor for exclusive distribution of European Union good manufacturing practice (EU GMP) flower, extracts, isolates and crystallites in Germany. The supplier is a major international grower and extractor in the process of European Union good manufacturing practice certification of its facilities and with scalable production in excess of 100,000 hectares, which includes, indoor medical-grade hydroponic high-tetrahydrocannabinol (THC) flower and outdoor high-THC and low-THC cannabis strains for extraction purposes.

Through its wholly owned German subsidiary, Vektor Pharma TF GmbH, Xphyto holds a number of German narcotics permits, including a commercial cannabis import licence. The company intends to import and distribute cannabis flower, isolates and derivative products in Germany and the European Union, beginning in Q1 2020. Xphyto has engaged with and carried out due diligence on a number of potential suppliers over the past six months. Following this process, the company is pleased to report that the current anticipated supplier has demonstrated an industry-leading commitment to quality and consistency of product.

"In our experience, quality and consistency is absolutely necessary for the German cannabis market, the largest medical cannabis market in the world," said Hugh Rogers, chief executive officer of Xphyto. "We look forward to proceeding to a multiyear engagement to bring medical-grade cannabis products to Germany. This is a significant part of our focus on near-term cash flow opportunities."

The company also holds a unique German cannabis cultivation and extraction licence for scientific purposes through it 100-per-cent-owned subsidiary, Bunker Pflanzenextrakte GmbH. Xphyto and Bunker have designed the cultivation and extraction facility to incorporate cannabis processing, packaging, storage and distribution capability.

About Xphyto Therapeutics Corp.

Xphyto is a next-generation cannabis company focused on formulation, clinical validation and emerging European markets. Xphyto's 100-per-cent-owned German subsidiary, Bunker Pflanzenextrakte, has been granted a unique German cannabis cultivation and extraction licence for scientific purposes by the German Federal Institute for Drugs and Medical Devices (BfArM).

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