Investor Information

AUSCANN GROUP LIMITED
COMPANY UPDATE

The Board of AusCann Group Limited (AusCann or the Company) are pleased to provide the following company update.

CANNPAL ANIMAL THERAPEUTICS LIMITED

We are pleased to report that Cannpal has recently signed its first deal.

AusCann is pleased to announce that CannPal Animal Therapeutics Ltd (‘CannPal’), of which AusCann remains a major shareholder, has entered into a strategic Option and Asset Purchase Agreement with a global market leading animal health Company, marking a major milestone in CannPal’s journey to commercialise its lead veterinary drug programs in Europe and North America.

The agreement represents a pivotal step in advancing CPAT-01, CannPal’s novel cannabinoid-based veterinary treatment, currently in development for FDA-CVM registration for pain in dogs.

Under the terms of the agreement, CannPal has granted the Partner an exclusive option to develop and commercialise CPAT-01 globally (excluding Australia and New Zealand), leveraging its extensive expertise and international reach. The Companies have formed a Joint Steering Committee (‘JSC’) to oversee the completion of a Phase 2C Dose Confirmation study during the option period.

The Partner has also acquired the North American rights to commercialise CannPal’s innovative plant-based dermatology assets, paving the way for CannPal to enter the Australian market shortly thereafter.
This partnership underscores CannPal’s ability to execute on its strategic vision while providing the Company with a clear trajectory towards FDA-CVM registration for CPAT-01 and the commercialisation of its dermatology assets.

AusCann is also pleased to announce that CannPal been granted a patent by the United States Patent and Trademark Office for its novel cannabinoid formulation for pain in dogs. The Invention relates to a liquid composition comprising a patented combination of Δ9-tetrahydrocannabinol (THC) and cannabidiol (CBD), methods of treating pain, inflammation and/or anxiety in a subject, as well as downregulating or upregulating expression of particular related genes.

The original patent application, which was first filed in 2018, was supported by data generated from a robust research and development program to identify an optimal ratio of cannabinoids, including THC, that would enable safe and effective treatment of dogs without the adverse effects commonly associated with cannabinoid use. The research found that oral administration of the liquid composition does not result in any significant observed adverse events while achieving sufficient bioavailability of both cannabinoids to provide a beneficial biological response in the subject.

Typically the length of a patent is limited to 20 years, providing an initial expiration date of 2039. However, due to delays by the patent office during examination of this application, there is an ‘adjustment’ that, subject to any terminal disclaimers, extends the term by 776 days to 29 July 2041, a valuable extension of patent term and protection by an additional 2 years. The strategy to remove the cost burden on AusCann and provide CanPall with a private company has enabled this deal to be done quickly and easily which justifies the Board strategy to divest 52% of Cannpal.

LOAN AND NOTE CONVERSION

AusCann has converted its loan to ECC Pharm (ECC) to equity in ECC at 4.2 cents per share in accordance with an Independent report prepared for the Board. Upon conversion AusCann now owns 19.8% of ECC.

ECC PHARM OPERATING UPDATE

ECC, through its 100% owned subsidiary RH Pharma continues to move towards commercialisation as the Cannabis sector in Europe continues to expand (see appendix 1), as evidenced by a significant increase in inbound interest in ECC products.

ECC has recently completed its second material sale of EU 700,000 of high grade THC Flower and is working towards locking this Company into ongoing sales. Importantly sales of dried flower are currently covering ECC operational expenses.

Two Polish Company’s have signed supply agreements with RH Pharma and these contracts are expected to bring in1.5m EUR per annum each. ECC is currently awaiting approval from the Polish Government to enable it to import Cannabis and once this approval is received ECC will begin to fulfill these contracts. ECC expects the approval to be received within the next three to six months.

RH PHARMA AGREEMENTS

Neurotech International Limited

On 13 February 2025 Neurotech International Limited (ASX NTI) announced the signing of a binding Development Agreement with RH Pharma, a European leader in the development and scale-up of cannabis-based products for pharmaceutical applications. Under the agreement, Neurotech will harness ECC’s advanced capabilities in product development, manufacturing, and scale up to meet the increasing global demand for high-quality cannabis-derived pharmaceuticals. Under the development plans, RH Pharma will undertake a controlled recombination process of highly purified cannabinoids from standard cannabis strains under Good Manufacturing Practice (GMP), and relevant other pharmaceutical standards, into a broad-spectrum cannabinoid drug product reflecting Neurotech’s compositional standards, and that meets global regulatory standards. The partnership allows both companies to leverage their expertise to deliver consistent, high performing products to international markets. The Development Agreement will enable Neurotech to expand into new markets while ensuring production at the highest pharmaceutical standards. Neurotech’s commitment to innovation has culminated in the development of proprietary technologies and processes that enhance product efficacy and safety.

Argent BioPharma Limited

On 5 March 2025, Argent BioPharma Limited (ASX:RGT) announced a strategic manufacturing partnership with ECC Pharm Limited.

Under the agreement, ECC will take on full manufacturing and batch release responsibilities for Argent BioPharma’s pioneering cannabinoid therapies—CannEpil® and CogniCann®—ensuring these treatments are available under early patient access programs in in Key EU countries, including Ireland, the UK, and Germany.

As part of the partnership, ECC will implement a technology transfer (Transfer) to relocate manufacturing operations from Argent’s current GMP-certified European facilities to its state-of-the-art facility in North Macedonia. All costs associated with the Transfer will be borne by the Company.

This move is designed to enhance production efficiency, ensure regulatory compliance, and support scalable manufacturing to meet the growing global patient demand. Argent BioPharma will retain ownership of all current and future R&D and Intellectual Property rights under the partnership. This strategic partnership will allow Argent Biopharma to focus its resources on its core expertise and intellectual property, in product clinical development and medical advancement. It will also deliver significant monthly operational cost reductions for Argent BioPharma and minimise monthly cashflow burn from running its own manufacturing facilities within Europe.

FUTURE OUTLOOK

As announced previously on ASX AusCann is investigating ways to merge with ECC to provide a more streamlined Company that reduces operational and corporate expenses. The Board reviewed the Scheme of arrangement process however decided that the cost to implement this was too high(quoted cost of (550-700k)and is now looking at a possible takeover of ECC or a take out of AusCann assets. It remains the focus of the Board to form a larger Company that has the ability to grow Medical Grade Cannabis and also provide its own product in market both in the Veterinary and Human space. Once a transaction is complete the board will look to list on an appropriate exchange with the aim to provide liquidity to shareholders and also to reflect fair value of the combined entity.

CannPal Finalises Key Terms with Leading Animal Health Partner

CannPal has successfully finalised key terms with a leading global animal health company to progress the development and commercialisation of CPAT-01, CannPal’s late-stage cannabinoid-based drug candidate for pain in dogs. The agreement is also expected to facilitate the U.S. launch of CannPal’s dermatology assets.

This development follows AusCann’s strategic decision in 2021 to divest its animal health assets, enabling CannPal to operate more efficiently as a private entity. The divestment allowed AusCann to conserve capital while retaining a 48% free-carried interest in CannPal, ensuring shareholders benefit from future potential revenues without additional financial obligations. Since the divestment, CannPal has been focused on advancing its core R&D initiatives and securing a strategic partner to support its commercial ambitions.

The finalisation of key terms with this global animal health leader represents a significant milestone in CannPal’s journey. The forthcoming agreement is expected to provide financial support for a Phase 2C dose-confirmation trial of CPAT-01, while securing pathways for the U.S. launch of its Dermatology assets. This partnership reaffirms the value of CannPal’s innovative R&D, positioning the company to unlock growth in the veterinary therapeutics market.

The final agreement is expected to be executed in the coming weeks. The Board of AusCann will continue to monitor progress and provide further updates once the agreement is completed.

ASX Release – CannPal Secures Patent and Top 10 Animal Health Partner.pdf