Cannasouth Bioscience Research Update

Cannasouth Limited (NZX:CBD) has initiated several significant research initiatives with funding support from Callaghan Innovation and has today released a video with Chief Scientific Officer, David Gill, providing an update on this research activity. The video is available online at https://youtu.be/ZIpkE2lDoF8 The video covers the following key topics: New Zealand market and Cannasouth's product strategy Mr Gill describes the range of projects Cannasouth's research and development team is working on, from simple, cost-effective extracts and tinctures through to a range of new technologies. Medicinal cannabis flower is also a target product, with high demand world-wide. Cannasouth's research focus Cannasouth's research includes identification of new molecules and compounds from cannabis extracts using super critical fluid chromatography technology, amongst others. A University collaboration is also underway - this is a computational study which matches these molecules with known receptors in the body. Cannasouth expects some outcomes from this study by the end of 2021. Focus on patients There is an unmet need worldwide for improved management of neuropathic pain which affects over 7% of the global population . This equates to over 300,000 people in New Zealand and 16 million people in the US. Cannasouth has a university collaboration to develop biological models to test cannabinoids for efficacy on neuropathic pain. This PhD study is in its second year, with an outcome expected in 2022. Differentiation Cannasouth's differentiation includes the development of novel drug delivery systems which will provide optimal efficacy, with the lowest dose, via routes of administration and formulation types. Studies are underway investigating nano technology and different routes of delivery. These studies are confidential and may be subject to patentable intellectual property claims in the future. Identifying the most effective way to treat specific conditions with cannabis-based medicines enables Cannasouth to develop "approved" medicines, which opens the pathway for patients to have the medicine funded following clinical trials. Clinical Trials Before commencing a clinical trial, scientists must identify the therapeutic indication and have confidence to meet the primary end point. Cannasouth will look at clinical trials in the future, using the pre-clinical data being gathered now to help ensure the right type of trial, patient cohort and clinical end point, to support a successful outcome. There are two key benefits of conducting clinical trials. One is that the product will be an approved medicine that will have everything Doctors are looking for with conventional medicines, including safety, efficacy, defined doses and administration routes. The other is that once a product is approved, then there is the potential for funding from the likes of Pharmac, or other funding bodies, to reduce the cost for patients. Regulation The first medicinal cannabis products in New Zealand are pre-clinical unapproved medicines. These are to meet patient demand and generate early revenues for companies in the emerging industry. Over time we expect the medicinal cannabis regulations and product development practices in the industry will become more aligned. Products will become more like pharmaceutical products and therefore need to meet the conventional regulatory pathway for Pharmaceuticals. -ENDS- For further information visit www.cannasouth.co.nz or contact: Mark Lucas CEO / Managing Director Email: mark.lucas@cannasouth.co.nz Mobile: +64 (0)21 484 649 Colin Foster CFO, Cannasouth Limited Email: colin.foster@cannasouth.co.nz Mobile: 027 577 1498 End CA:00384217 For:CBD Type:MKTUPDTE Time:2021-12-07 09:00:04