Ingredients Distribution Agreement

WESTCHESTER, ILL. – A distribution agreement between Ingredion, Inc. and Batory Foods covers 15 states and will consolidate Ingredion`s distribution reach in the western and central U.S. Midwest. Batory Foods, Rosemont, Illinois, becomes an authorized distributor of Ingredion in the states of Arizona, California, Hawaii, Idaho, Illinois, Iowa, Minnesota, Nevada, New Mexico, North Dakota, South Dakota, Oregon, Utah, Washington and Wyoming. BioHarvest Sciences Inc., based in Vancouver, British Columbia, is the exclusive developer and owner of the proprietary and patented bioexploitation technology. It is the first and only industrial-scale plant cell technology capable of producing the plant`s active ingredients without the need to grow the plant itself. The company`s technology is GMO-free and has already been validated by VINIA®, the functional/red blood cell supplement food manufactured and sold by BioHarvest Sciences Inc. The company expects to generate significant sales in the global nutraceutical ingredients and supplements market with VINIA® and other Super Fruit nutraceutical products.

In addition, BioHarvest Sciences Inc.`s goal is to become the leading supplier of cannabis for legal medical and recreational purposes by adapting this technology to the cannabis plant and building adequate production capacity. Visit: www.bioharvest.com. Founded in 1979, Batory Foods is a national distributor of distribution and supply chain management solutions that provides food, beverage and nutraceutical manufacturers in the United States with a comprehensive portfolio of high-quality food ingredients. The company connects leading food ingredient manufacturers with reputable food and beverage brands. Batory operates a nationwide system of warehouses and distribution centers for fast and efficient product delivery. For more information, see www.batoryfoods.com. “Batory Foods prides itself on providing our customers with easy access to trendy ingredient solutions and systems that can help them succeed in a rapidly changing market,” said Dan Riesenberg, Batory Food`s Sales Manager. “Given our robust and extensive national distribution coverage, customers in these states will continue to be able to obtain Ingredion solutions through Batory Foods,” adds Riesenberg. This partnership consolidates the B2B pillar of BHSC`s recently unveiled growth strategy.

Not only does this ensure significant revenue generation and distribution of BHSC products, but it also allows BHSC to support a significant manufacturing scale that allows BHSC to generate a projected and estimated weighted gross profit margin of 60% to 70% in the market on its B2B and B2C routes combined. “The partnership with Essential Ingredients takes the launch of Cosun Beet Company`s Biobased Experts ingredients in North America to the next level. The extensive network of essential ingredients in the HI&I market, combined with their technical expertise and professional reputation, will drive the use of our ingredients in the market,” said Robert Nolles, Director of North American Marketing and Sales at Cosun Beet Company – Biobased Experts. The agreement will enable BHSC and Batory to be at the forefront of innovative functional solutions to address growing industry trends in health and wellness. “Working with Bioharvest Sciences is an exciting development in our organization as we strategically diversify our product portfolio to incorporate fashionable functional ingredients and establish exclusive partnerships with innovative organizations such as BioHarvest Sciences Inc.,” said Vince Pinneri, President of Batory Foods. “Working with strategic partners like Bioharvest Sciences allows us to create value throughout the food chain and bring innovations like this to life.” Ingredion Incorporated, a global provider of ingredient solutions for diverse industries, announced the signing of a new strategic distribution agreement with Batory Foods. Effective September 10, 2021, the agreement consolidates Ingredion`s distribution reach in the western and central Midwest of the United States to help food and beverage manufacturers obtain the ingredients they need to manufacture and market their products. This agreement covers the following 15 states: Arizona, California, Hawaii, Idaho, Illinois, Iowa, Minnesota, Nevada, New Mexico, North Dakota, South Dakota, Oregon, Utah, Washington and Wyoming. Batory Foods becomes Ingredion`s authorized distributor of ingredient systems and solutions in these states with a broader perspective. The distribution agreement does not cover sweeteners, specialty sweeteners, polyols, stevia or sugar reduction systems.

Ingredion and Batory Foods announce the signing of a new strategic distribution agreement. This partnership offers Batory`s customers a unique opportunity to deliver superior functional benefits to their consumers, supported by BBB`s unwavering focus on scientifically validating the effectiveness of its products. In addition, this agreement will allow Batory to offer hemp-based CBD with < 0.3% THC to leading food, beverage and nutraceutical companies in the future. BHSC`s proprietary process will produce hemp-based CBD with fingerprint consistency and a level of cleanliness, quality and safety that the industry has never experienced before. Ilan Sobel, CEO of BHSC, commented: "Batory Foods` decision to work with BHSC is an important vote of confidence in the scientifically and clinically proven benefits of BHSC`s bio-agriculture technology and unique product portfolio. Batory is BHSC`s ideal partner in its quest to revolutionize the nutraceutical ingredients industry. Batory provides BHSC with access to approximately 5,000 customers in the food, beverage and nutraceutical sectors, including many key players in these sectors, with its unique portfolio of Superfruit Wellness nutraceutical solutions and the delivery of hemp-based CBD in the gold class with THC <0.3% in the future. Under the terms of the agreement, Batory must purchase at least $18.6 million in nutraceuticals over a 7-year period to maintain exclusivity. The amount of maintenance will increase over the duration of the agreement in line with BHSC`s production capacity and product offering and could continue to increase with the introduction of hemp-based CBD with <0.3% THC.

Batory has exclusivity in the U.S. market for all B2B sales of food and beverage customers, as well as for certain large nutraceutical customers with whom it has important relationships. Starting today, Batory`s sales team will focus on selling VINIA® Red Grape cells to a select group of target customers. Batory`s launch of VINIA® B2B will be followed in 2022 by hemp-based CBD with < 0.3% THC and other variants of nutraceutical superfruits such as olives and pomegranate. "Expanding the distribution of our ingredient solutions through Batory Foods allows us to meet the fluctuating needs of manufacturers resulting from changing consumer demand," said Gary Leeson, Director of Distributor Sales at Ingredion. "With solutions ranging from clean label native and functional starches and multifunctional fibers to plant-based proteins and hydrocolloids, Ingredion has a broad portfolio of ingredients in demand to help manufacturers get to market faster with brands designed to be preferred by consumers," adds Leeson. The distribution agreement does not cover sweeteners, specialty sweeteners, polyols, stevia or sugar reduction systems. "We are honored to represent Cosun Beet Company – Biobased Experts in the North American hygiene market," said Kris Maynard, CEO of Essential Ingredients. "Cosun Beet Company – Biobased Experts The commitment to developing sustainable and innovative raw materials for the hygiene market puts us in an excellent position to delight our customers with quality products that help them stand out in the market.

We look forward to a successful and long-standing partnership with Cosun Beet Company – Biobased Experts. ». . . Following BHSC`s announcement last month regarding the planned construction of a new 20-tonne production facility that is expected to come online in early Q3 2021, this partnership demonstrates BHSC`s ability to execute on its growth strategy. It highlights the company`s evolution from an R&D company to a fully functional, performance-driven end-to-end organization. Dave Ryan, Vice President, Investor Relations and Director Phone: 1 (604) 622-1186 Email: dave@bioharvest.com. For more information, or for product and pricing inquiries, orders and other questions, contact Gary Leeson, Ingredion at 651-894-4216 or Dan Riesenberg, Batory Foods at 213-434-1710. The Company invites its shareholders and the general public to participate in today`s Live Zoom Conference Call on September 16, 2020 at 1:00 p.m.m Eastern Standard Time. Ilan Sobel, CEO of BHSC, will host the event and provide an update on the company`s significant progress. Join the Zoom Live meeting at 1:00 p.m.m EST BioHarvest Sciences Inc.

Ilan Sobel, President and CEO. About Essential Ingredients, Inc. Essential Ingredients is an international distributor of raw materials used in the manufacture of personal, household and industrial care products. In 2017, Forbes magazine recognized the company as one of its small giants: the best American small businesses. Essential Ingredients is a 100% employee-owned company after the introduction of an employee share ownership plan (ESOP) in 2011. The company invests and depends on its owner employees, who in turn take care of their business, their customers and the supplier partners who serve them. .