SUDA Pharmaceuticals Ltd. has entered into an exclusive License and Distribution Agreement for ZolpiMist in Australia with STADA Pharmaceuticals Australia Pty Ltd, a member of the global, German-based STADA Group. SUDA obtained approval from the Therapeutic Goods Administration (TGA) for ZolpiMist as announced 29 July 2020 1 and continues to work closely with its current licensees. SUDA will submit a further application to the TGA for a modification to the current spray unit, incorporating in the application a more economical, elegant, and user-friendly child resistant lock (CRL). It is anticipated that the new CRL will be implemented from the second batch of product produced for STADA onward. According to a survey conducted by the University of Southampton, the incidence of people suffering from sleep problems rose from one in six to one in four during the COVID- 19 pandemic. 2 Clinical data supports the faster onset of action of ZolpiMist over conventional tablet forms of the drug 3, which is a critical factor for an effective anti- insomnia medication. Key terms of the Agreement: The Agreement is a perpetual, exclusive Licence for ZolpiMist® for Australia; STADA has the option to distribute the product in New Zealand; SUDA will receive an upfront fee of $170,000 plus a milestone payment of $40,000; The milestone payment is linked to the approval of the enhanced CRL; SUDA will receive a 10% royalty based on net sales of the enhanced product; SUDA to manufacture and supply the product at agreed supply prices; STADA is responsible for commercialisation of the product in Australia; and the agreement is subject to standard termination clauses.