KD Pharma Group and Herbolea Biotech Sign Licensing Agreement for Use of Bio-Herbolysis™ Extraction Technology

The KD Pharma Group SA (“KD Pharma”), a global pharmaceutical CMO and one of the leading producers of Omega-3 fatty acids, and Herbolea Biotech Srl (“Herbolea”), an Italian biotechnology company developing proprietary botanical extraction technologies, are pleased to announce the signing of a Licensing Agreement granting KD Pharma the rights to utilize Herbolea’s Bio-Herbolysis™ extraction technology in Europe.

Bio-Herbolysis™ is a highly scalable, solvent-less and environmentally friendly technology that can extract cannabis’ full phytocomplex starting from wet or dry material, yielding 90%+ extraction efficiency while preserving its original acidic forms and terpene profile.

KD Pharma has the largest isolation and fractionation technology portfolio in the lipids industry and with this agreement will expand its capacity for manufacturing a full spectrum of cannabis and terpene-based products for use in pharmaceutical, dietary supplement and medicinal food products.

As part of the agreement, Herbolea commits to deliver Good Manufacturing Practices (GMP) compliant equipment to KD Pharma’s facilities, with the capability to process 100 kg of dry flower or its wet equivalent per batch.

With the signing of this agreement, both parties will start a collaboration for the research and development of post-processing technologies to improve production of cannabis and terpene-based products.

HIGHLIGHTS OF HERBOLEA’S BIO-HERBOLYSIS™ TECHNOLOGY

Bio-Herbolysis™ delivers a high-quality, solvent-less extraction, one step process that is industrially proven at over 300 kg/hour, yielding over 90% efficiency, and with significant operational and investment savings.

Benefit of processing Wet Material: Preserves cannabinoids in acidic form and delivers increased terpene preservation that translates to 2.5x terpene content in a Bio-Herbolysis™ extract vs. the same biomass in dry form. Wet processing eliminates 15 days of inventory costs and associated operational and facility costs.

CAPEX Savings: Herbolea provides the equipment, eliminating associated capital investments and resulting in savings of over EUR 5MM. Savings consist of extraction equipment, reduced facility requirements, and post processing equipment vs that of comparable technologies for 100,000 kg per year of dry flower equivalent.

Facility Costs: Lower facility buildout costs, with a footprint of 60 square meters for a 100 kg batch first extraction configuration. Elimination of solvents reduces operational hazards, safety requirements and associated permitting restrictions.

Efficiency Value: True full spectrum 90%+ efficiency of cannabinoids and terpenes.

Reduced Labor: Simplified one-step process reduces operational complexity and labor costs.

Remote Support and Improvements: Herbolea provides remote monitoring, along with technology improvements and equipment upgrades.

ABOUT KD PHARMA GROUP SA

The KD Pharma Group SA is a contract manufacturer that develops products in the pharmaceutical and nutraceutical space. It is also one of the largest Omega-3 fatty acid producers in the world with 500 employees and a presence in the UK, NorwayGermanySwitzerland and the US. The KD Pharma Group employs state-of-the-art technology which is protected by numerous patents. Visit www.KDPharmaGroup.com.

ABOUT HERBOLEA BIOTECH SRL

Herbolea Biotech is an Italian extraction technology company focused on transforming botanicals into superior quality products through proprietary, highly efficient, and environmentally friendly technologies. Visit www.herbolea.com.

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