Sales of Arthrem to Cease

14 February 2020 PROMISIA INTEGRATIVE LIMITED - Arthrem Sales to Cease In July 2019 Medsafe made an application to the Classifications Committee to have Artemisia Annua (the key ingredient in Arthrem), in all its forms, classified as a prescription only medicine at any dose. Promisia, along with other companies that use Artemisia Annua, made submissions challenging the proposed reclassification and recommending that Artemisia Annua should remain a dietary supplement. The company is unaware of any other natural product being classified as a prescription medicine in New Zealand. The Classification Committee met in October 2019 and, to the surprise of the natural products sector, made a recommendation to the Minister of Health that Artemisia Annua was to be reclassified as a prescription only medicine. This recommendation was appealed by Promisia and a number of other companies. All appeals were rejected and the reclassification will come into effect on 4 March 2020. The company is aware that at least one party is intending to apply for a judicial review of the decision process, the final decision and the recommendation to the Minister. Promisia notes that on 28 August 2019 it advised shareholders that it had made a significant impairment provision for its stock of Arthrem in its six month accounts to 30 June 2019. On 19 December 2019 the company advised that it is to seek shareholder approval to acquire three aged care facilities and cease operating in the natural products market. The final decision of the Medicines Classification Committee confirms that the decision to exit the natural products market was correct. This decision will have minimal impact on Promisia as most stock was written off as at 30 June 2019 and the stock retained has been sold. Rene de Wit CEO 021 571000 End CA:00348430 For:PIL Type:GENERAL Time:2020-02-14 14:50:33