Lyphe Group Ltd.

Lyphe Group, the UK’s largest medical cannabis company, has signed an agreement to acquire Materia, an EU GMP producer and distributor of medical cannabis across Europe (the “Transaction”). The combined entity (the “Company”) will bring together Lyphe Group’s and Materia’s complementary capabilities of manufacturing, distribution and patient acquisition across major European markets. This integrated product-to-patient ecosystem will enable the Company to realise immediate operational and financial synergies, including: The Transaction will further the Company’s current leadership position in Europe. Lyphe Group currently holds an estimated 35% market share in the UK, where it has been a first mover since medical cannabis was legalised in 2018. Materia owns its own medical cannabis importer and distributor in Germany, Europe’s biggest market, and also operates an EU GMP manufacturing facility in Malta. Earlier this year, Materia’s Malta facility became the first to ever export medical cannabis from Malta to another country. Jonathan Nadler, CEO of Lyphe Group, said: “I am thrilled to announce Lyphe Group’s agreement to acquire Materia. Having an integrated supply chain will have a massively positive effect on the industry, demonstrating our continued commitment to improving the patient experience and standards of the market.” Nick Pateras, Managing Director of Materia, said: “Our team has spent over three years building a truly unique infrastructure in pursuit of a leadership position in the European cannabis market. After the milestone accomplishments of the last twelve months, we are looking forward to this next chapter.” Lyphe Group and Materia will now work through the customary processes associated with the Transaction. Concurrently, Lyphe Group has engaged Sharp Capital to raise additional capital to accelerate the achievement of key business milestones in the Company's business plan and capitalise on identified market opportunities.