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Apollon Announces Joint Venture With Tri-Medi Canna In South Africa

Apollon Formularies plc (AQSE: APOL, “Apollon” or the “Company”), a UK based international
pharmaceutical company trading on the Aquis Stock Exchange, is pleased to announce that it has
signed a Joint Venture Agreement (the “Joint Venture”) with Tri-Medi Canna Pty Ltd. (“Tri-Medi
Canna”), a South African based medical cannabis company, to establish a jointly-owned incorporated
South African company, Apollon SA Pty Ltd. (the “JV Company”).

Transaction Highlights:

• The Joint Venture represents Apollon’s first international expansion, with the potential to
reach over 350 million people in the Southern African Development Community (“SADC”)

• Apollon will receive a gross royalty on sales for all Apollon products sold within South Africa
before extending its commercial reach to the wider SADC region under a renewable,
mutually exclusive license agreement, the initial term of which is 12 months

• To strengthen commercial ties between the parties, Tri-Medi Canna will become a
shareholder in Apollon via share subscription totalling £300,000 over two tranches, the first
of which will be for £150,000 at 2.5p per share

Joint Venture Highlights:

• The Joint Venture will give Apollon a commercial footprint in South Africa, offering the
Company an additional avenue to monetise its proprietary medical and technical experience

• Tri-Medi Canna is a South African-based medical cannabis company in the process of gaining
a large volume (256 hectares) cultivation license from the South African Health Products
Regulatory Authority (“SAHPRA”) and has engaged with both national and local arms of
government in South Africa

• Apollon will own 49% of the JV Company with Tri-Medi Canna owning the remaining 51%.

• All future operating licenses along with any future intellectual property developed under the
JV Company will be jointly owned

• Africa’s medical cannabis sector is forecast to be worth up to $7.1 billion by 2023i with South
Africa potentially making up 70% of the current market

• The Joint Venture will open additional opportunities for Apollon to undertake clinical trials
on its proprietary medicinal cannabis formulations for treating cancer


Apollon has been seeking opportunities to expand its operations internationally into growth markets
where it can make its proprietary medical cannabis formulations for various cancer conditions
available to a wider patient base while continuing to collect valuable clinical data. Apollon’s Joint
Venture with Tri-Medi Canna will provide the Company access to the South African market as well as
the wider SADC region which has a population in excess of 350 million people. The Joint Venture will
seek to establish a strong foothold in Africa which is widely considered to be the last remaining
significant region of pharmaceutical growth globally. Tri-Medi Canna will apply for licenses to replicate
those held by Apollon in Jamaica through the SAHPRA and/or an applicable overseeing body in South

The Joint Venture will be mutually beneficial, with Tri-Medi Canna gaining access to Apollon’s vast
experience across the value chain, from skill transfers in extraction and processing, pharmaceutical
level drug development, clinical trials, patient treatment centres, experienced physicians with medical
cannabis treatment experience and the exclusive Licensed distribution of Apollon’s proprietary
products and formulations once the necessary licenses have been granted by SAHPRA. When these
License milestones have been achieved, Tri-Medi Canna will also benefit from Apollon’s ongoing
international exposure to European markets.

Tri-Medi Canna will also engage with the South African Government to obtain letters of support from
the Department of Trade and Industry, Agricultural Research Council and clinical specialists working
collaboratively on cannabis research at the University of Kwazulu Natal amongst other leading
academic institutions to bolster continuing research and development in the medical cannabis sector.

Transaction and Share Subscription

The Joint Venture has an initial contract term of 12 months and shall be governed by a definitive joint
venture agreement (the “Definitive Joint Venture Agreement”). Amongst other things, the Definitive
Joint Venture Agreement shall provide for:

• the incorporation of Apollon SA Pty Ltd which will be owned 49/51 between Apollon and TriMedi Canna respectively;

• signature of a shareholders agreement regulating the parties’ ongoing relationship;

• a gross royalty agreement on sales revenue from Tri-Medi Canna for Apollon products
distributed and sold in South Africa and the wider SADC region; and

• Joint ownership of newly devopled intellectual property and operating licenses.

To strengthen commercial ties between the parties, Tri-Medi Canna will become a shareholder in
Apollon via an ordinary share subscription totalling £300,000 over two tranches. The first tranche will
be executed shortly aftersignature of the Definitive Joint Venture Agreement for £150,000 at 2.5p per

Tri-Medi Canna will also subscribe for a further £150,000 in ordinary shares in Apollon upon entering
into the Definitive Joint Venture Agreement which will be based on the market price of Apollon’s
ordinary shares on the date of the Definitive Joint Venture Agreement being made.

Stene Jacobs, COO of Apollon Formularies for Europe and Africa, commented, “This is a major step forward in Apollon’s plans to reach global markets and the African market which still remains largely untapped. Tri-Medi Canna’s relationship with necessary key stakeholder in South Africa will provide Apollon with the platform to infiltrate this market, whilst providing the local community with access to training, knowledge and skills and contribute to local employment.

“South Africa has the opportunity to build on its reputation as the regional best in class operator and
to showcase its already successful cultivation and plant genetics abilities. In conjunction with this, the
South African medical fraternity is deeply admired for being at the forefront of medical advancements,
with deep scientific knowledge in conventional and alternate medicine.

“This Joint Venture Agreement validates Apollon’s business model in Jamaica and our ability to
replicate and scale up operations to other international jurisdictions. We look forward to keeping the
market updated on our progress as we enter this exciting chapter in Apollon’s journey.”

Thokozani Shongwe, CEO of Tri-Medi Canna, stated, “We are delighted to be working with Apollon
Formularies as we expand our offering across South Africa and grow our knowledge and skill base
through this partnership. Apollon has forged firm routes in Jamaica and its proprietary formulas have
consistently proven to be effective during rigourous testing on pre-clinical third-party pharmaceutical
laboratory testing conduced in the US on 3D Cell cultures.

“This is a crucial time in the development of the African cannabis sector, and I am proud that Tri-Medi
Canna can work with Apollon to establish a strong foothold from which to expand into the SADC and

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