BioHarvest Sciences Inc. announced the signing of two agreements: an equipment purchase agreement for 12 state of the art GMP clean rooms, and a long term lease agreement for a new 80,000 square ft. facility in Yavne, Israel. The new facility houses industry leading clean rooms, as well as built-out laboratory space, offices and additional space capable of supporting a new 50 Ton manufacturing facility.

The commercial term of the lease is for 78 months at a cost of 20.2 million shekels (USD 5.5 million), subjected to changes in the Israeli consumer price index over the entire term. The equipment purchase price is 13 Million shekels (USD 3.6 Million). All equipment for the clean rooms has been installed and is ready for immediate operational use.

This transaction gives Bioharvest immediate access to the required clean rooms and built out laboratories to accommodate the anticipated growth of the CDMO Business Unit. The facility has enough additional space to avail the building of a new 50 Ton manufacturing facility which is expected to be operational in second half of 2025 to meet the forecasted demand of the Products Business Unit as well as to satisfy the initial large scale manufacturing requirements of CDMO customers. This new manufacturing facility will utilise upgraded equipment and technologies which the Company has been developing, representing the second generation of the Botanical Synthesis manufacturing process, designed to further improve production yields and efficiencies.

The Company expects that Rehovot facility Research & Development and corporate administrative offices will be moved to the new BioHarvest Campus in the next 6-9 months. In the future, this new Campus will house all R&D functions and the addition of a new manufacturing facility in 2025. It will also allow CDMO customers to experience the complete end-to-end botanical synthesis development and manufacturing service under one roof.

The Company anticipates that new technologies successfully implemented in this new campus will optimize design of the 3rd generation production facility, which is expected to be built in the USA, with a 150 Ton capacity.