BioHarvest Sciences Inc. announced that this new unit has recently signed two contracts to develop complex molecules - for a NASDAQ listed pharmaceutical company, and for a leading player in the nutrition and ingredients industry. The new business unit allows pharmaceutical, cosmeceutical, nutraceutical and nutrition industry leaders the opportunity to partner with BioHarvest to utilize its Botanical Synthesis Process technology through a typical CDMO contracting model. This proprietary process technology enables the development and manufacturing of patentable plant based small molecules, complex molecules, and unique compositions which include both small and complex molecules.

The Company's Botanical Synthesis Process is able to develop complex molecules otherwise known as Biologics which have a number of unique advantages for the industry, including lower costs of development and manufacturing, a much faster speed of development, and non-immunogenic properties that enhance safety. As a result of these advantages, the Company has decided to call these unique plant-derived complex molecules BIOLOGICS+ will help address unmet needs in the health industry across pharmaceutical, nutraceutical, cosmeceutical and nutrition verticals. The CDMO business offers the Botanical Synthesis process technology in 3 major steps to its customers.

Step 1 (3 to 6 months) is capable of producing a small biomass of the plant-based BIOLOGICS+ from the source plant. This step requires the customer to pay BioHarvest Non-Recurring Engineering Expenses (NRE) between USD 150,000 to USD 500,000. Step 2, (6 to 9 months) provides for delivery of an increased amount of biomass to enable clinical trials and other tests, and requires NRE of USD 350,000 to USD 700,000.

Step 3, (9 - 12 months) is the last development step that brings the molecules to a large scale production capability and requires NRE between USD 1 million to USD 1.5 million. In summary, full successful development using the Botanical Synthesis Process will take 15 to 24 months and between USD 1.5 million to USD 2.5 million in NRE. Should the customer decide to produce the developed molecule/s at industrial scale following successful completion of Step 3, BioHarvest would enter a royalty-based payment model for industrial manufacturing of the molecule/s. The CDMO's first contract is with a NASDAQ-traded pharmaceutical company, which for strict confidentiality reasons cannot be disclosed.

This pharmaceutical entity has contracted BioHarvest to develop particular complex molecules that would form the base of their patented drug development. The contract is for Step 1 of the Botanical Synthesis process and is priced at the lower level of the above- mentioned range. The second agreement is with a major player in the Food nutrition and ingredients industry and for strict confidentiality reasons, cannot be disclosed.

This industry leader has contracted BioHarvest to develop unique plant-based molecules for the use in the multi-billion sweeteners industry. The contract is for Step 1 of the Botanical Synthesis process and is priced at the lower level of the above-mentioned range. Given the commercial potential of this specific sweetener molecule, BioHarvest has decided to take a 50% stake in the molecule ownership rights via contributing 50% to the Step 1 development costs.

Both contracts have the potential to progress to Steps 2, 3 and the production phase.