Ecofibre Limited provided an update on the establishment of EOF BIO LLC. On 11 May 23, Ecofibre announced that it had been granted several patents related to its gynaecological disorders portfolio and the Company's intention to begin to commercialise this intellectual property. The Ecofibre Group and the University of Newcastle are currently finalising licensing arrangements with EOF-BIO to facilitate commercialisation of the intellectual property.

EOF-BIO is a Delaware Limited Liability Company and, before external investment, a 100% owned subsidiary of Ecofibre USA, which is a 100% owned subsidiary of ecofibre Limited. The members of EOF-BIO now include Ecofibre USA and external investors. Summary of Key Terms. Ecofibre USA will be the majority shareholder of EOF-BIO, and the two types of financial interests in EOF-BIO will be via equity ownership and royalties.

The following provided further detail on the ownership structure of EOF-BIO, and the anticipated structure of the license agreement currently being finalised by EOF-BIO, Ecofibre and Newcastle University. Equity capital for EOF-BIO: Pre-money enterprise value: USD 30 million; External capital invested: Funds committed to tranche 1: USD c.1.5 million for 4.8% ownership; Funds for tranche 2: USD c.8.5 million to be raised seccond quarter 2024 (enterprise value TBD); Future tranches: TBD; Equity ownership type; Ecofibre: common shares; External investors: preferred shares (no voting rights). EOF BIO will have the exclusive rights to commericalise the Intellectual Property developed by Ecofibre and the University of Newcastle.

Royalties will be payable on any sub-license of Intellectual Property to a third party and on any products developed by EOF-BIO or its sub-licensee. Use of Funds and Next Steps: Over the next two years, the funds will be used for: specific phase 2 clinical trials; the development of additional patents for future commercialisation opportunities; further development and execution of the commercial strategy, with assistance of two global pharmaceutical service providers.