Rua on track to export to Germany by year end

FOR PUBLIC RELEASE
NZX Limited
Wellington

Tuesday, June 28, 2022


Rua Bioscience on track to export medicinal cannabis to Germany by year end

Rua Bioscience Limited (NZX: RUA) announced today that it has received its narcotic license
through Nimbus Health GmbH for distribution and marketing of its first product for the German
medicinal cannabis market – a move understood to make Rua the first medicinal cannabis
company from New Zealand to take such a step.

The application to extend the narcotics license of Nimbus Health GmbH (“Nimbus”) to include
Rua’s dried flower has been granted by the German Federal Institute for Drugs and Medical
Devices (BfArM). Rua signed a commercial agreement with Nimbus Health in July 2020. The
approval of the application will enable Nimbus to distribute and market Rua's products in
Germany by the end of 2022.

The medicinal cannabis product which is a high THC flower, has been developed through an
extensive R&D programme by Cann Group, Rua’s Australian strategic manufacturing, supply and
technical services partner.

Linus Weber, Nimbus Founder and Managing Director, says his team is excited with the progress.

“In Germany, medicinal dried-cannabis flower is prescribed mainly for pain patients (70%)
1
, and
cannabis flowers with a THC content of greater than 20% make up 77% of cannabis flower
prescriptions
1
. At its launch, we believe Rua’s flower will be one of the highest THC dried flower
medicines on the market, which will give Rua a significant competitive advantage,” he says.
“Through its partnership with Cann Group and with Nimbus as a distribution partner, Rua is well-
positioned to provide German patients with sustainable access to its product for many years to
come.”

Rua CEO, Rob Mitchell says, “With the European medicinal cannabis market estimated to be
worth €2.3b ($3.82b NZD) by 2026
2
, Rua understands it must go global to support local, and our
export plans, particularly into Germany and wider Europe, are coming to fruition.

“The acquisition of Zalm Therapeutics has enabled us to advance the securing of supply
agreements in other emerging, high growth markets including Czech Republic, Poland and the
UK.

MARKET ANNOUNCEMENT

“The global commercial opportunities open to Rua are compelling and underpinned by our ability
to export high-value medicinal cannabis at scale and pace as a result of the partnership we now
have with Cann Group and the scale afforded by their Mildura facility,” he says.

Cann’s new AUD $120m cultivation and processing facility at Mildura is considered one of the
largest and most advanced in Australasia. The first stage of its construction is now operational
and capable of producing 12,500 kilograms of dried cannabis flower per year. When complete,
capacity at the 13.5-hectare facility will grow up to 70,000 kilograms. In a capital-light strategy,
Gisborne-based Rua is leveraging this unprecedented scale to punch above its weight and deliver
a range of medicinal cannabis products to multiple export markets in record time.

Chief Commercial Officer, Andi Grant, who is leading Rua’s push into Europe says “Each market
has a unique regulatory environment, which makes the work complex but with strong short and
long-term potential”.

The Czech Republic is one of the most progressive medicinal cannabis markets in Europe. It has
seen steady growth over the last five years, largely thanks to a comprehensive public
reimbursement programme whereby up to 90% of medical cannabis costs are covered

by the
Government
2
.

The Polish medicinal cannabis market is expected to be worth at least €2b ($3.29b NZD) by 2028
3
. In
Poland, medicinal cannabis must be imported from foreign producers, which presents significant
opportunities for international companies
3
.

The UK is one of Europe's most promising markets for medical cannabis in terms of its sheer number
of patients. With a regulatory and funding approach very similar to New Zealand’s, the number of
privately prescribed medical cannabis items dispensed in 2021 increased by 425% on 2020
2
. Experts
estimate the existing 15,000 patients in the UK could conservatively reach 650,000 patients in the
next seven years, amounting to an anticipated gross market size of around $1b USD
2
($1.5b NZD).

Rua will announce further expansion plans later in the year as the company finalises distribution
agreements across Europe.

“While the company looks to global markets, it remains committed to patients in New Zealand
and developing products for the New Zealand market.

“The kaupapa to give back to the community will always be in our DNA and entering global
markets will secure meaningful revenue so we can continue prioritising sustainable economic
development in the Ruatorea and East Coast communities,” says Grant.


ENDS

Nimbus
is a fully licensed pharmaceutical wholesaler and manufacturer from Germany with its
own warehouse facilities and an independent sales force to promote medical cannabis-based
products to pharmacists. Nimbus Health is a wholly-owned step down subsidiary of the global
pharma company Dr. Reddy’s Laboratories Ltd.

Cann Group
is an established ethical leader in Australia’s emerging medicinal cannabis industry,
building a world-class business focused on breeding, cultivating, manufacturing and supplying

medicinal cannabis. Cann has established research and cultivation facilities in Melbourne and a
new state-of-the-art cultivation and manufacturing facility near Mildura, Victoria. Learn more at:
www.canngrouplimited.com | www.satipharm.com

Rua
aims to be a leading producer of cannabinoid derived medicines for both export and local
markets. Rua has been an early mover in the sector and was the first private company in New
Zealand to receive a licence to cultivate cannabis for research purposes. Founded in 2017 in
Ruatorea as a subsidiary of charitable company Hikurangi Enterprises Limited, Rua is
underpinned by a mission and its connection to its local community in Te Tairāwhiti. The
company operates state-of-the-art cultivation and manufacturing facilities from its regional base.
www.ruabio.com.

Citations
1
Bundesgesundheitsblatt Gesundheitsforschung Gesundheitsschutz. 2021; 64(3): 368–377

2
The European Cannabis Report: 7th edition: Reports. Prohibition Partners. (2022, April 8).
Retrieved May 25, 2022.
3
Prohibition Partners. (2022). (rep.). The Poland Cannabis White Paper. Retrieved June 3, 2022.

For more information, please visit www.ruabio.com or contact:
Kerry Donovan
Communications Manager
Rua Bioscience
M 021 128 7689
kerry.donovan@ruabio.com