Avicanna Inc. announced an exclusive supply agreement for two of the Company's proprietary topical products with a multinational pharmaceutical company. Pharma manufactures and markets a wide range of pharmaceuticals across 4 continents and has established commercial infrastructure in the European region that will be utilized for the initial launch of the selected products. Pharma has committed to launch the initial products in 6 European countries during 2024 with expectations of expanding throughout the region shortly after.

Avicanna will be earning licensing fees associated to specific milestones and the parties have also agreed to specific minimum order quantities and efforts for Pharma to maintain the exclusivity. The exclusive supply agreement is for the Company's proprietary topical products that have been commercialized in the Canadian market under the RHO Phyto brand across several medical cannabis platforms including MyMedi.ca. Products Selected: The Ultra-CBD cream is a 3% CBD localized cream developed to target dermatology conditions.

The cream is enrolled in previously announced observational real world evidence clinical trial with the Hospital for Sick Children related to Epidermolysis Bullosa. The CBG Transdermal Gel is a 2% CBD and 0.5% CBG gel developed to target local inflammatory and pain conditions. The gel is enrolled in previously announce observational real world evidence clinical trial on musculoskeletal pain and inflammation.

The products have completed dossiers and will be registered and commercialized under applicable cosmetics legislation providing a route to market with the expected launch during the first half of 2024. The products will be manufactured using the Company's Colombian operations while utilizing Avicanna's own source of cannabinoids from majority owned subsidiary, Santa Marta Golden Hemp S.A.S. Additionally, the two companies have entered into a separate right of first refusal agreement related to the Company's SEDDS technology capsules for the same region.