Update on Global Hemp Group

02 August 2023

Apollon Formularies Plc

Update on Global Hemp Group

Apollon Formularies plc (AQSE: APOL, "Apollon" or the "Company"), a UK based international pharmaceutical company trading on the AQSE Growth Market, that is licenced to research, develop, process, and sell medical cannabis therapeutic products that include legal medical cannabis to treat various illnesses under medical supervision, announces that the Company will not be proceeding with proposed deal with Global Hemp Group Inc. ("GHG") under the binding letter of intent ("LOI") released on the 12th of January 2023

As announced on 12 January 2023, under the terms of the binding LOI dated January 9, 2023, GHG acquired the exclusive perpetual license for North America (specifically, the United States, Canada. and Mexico) to certain Apollon Intellectual Property and proprietary technology, for US$250,000 and 10,000,000 common shares in GHG. On April 4, 2023 GHG announced that it completed its contractual payment obligations relating to the Exclusive Licensing Agreement for the patents and Intellectual Property ("IP") of Apollon. On March 21, 2023, GHG announced that the Company added additional exclusive licenses from Apollon for the countries of Israel, and the European Union (with extension to Morocco).

Apollon expects to benefit from the Licensing Fee revenues which shall equal 10% of gross sublicensing fees received by GHG. During the term of this License Agreement, GHG shall pay a quarterly licensing fee to Apollon, the payment of which shall be triggered when revenues are first generated from sublicensing activities. Payment of the Licensing Fee shall commence in the subsequent quarter as agreed to in the License Agreement dated January 19, 2023, emanating from all gross sublicensing fees received by GHG in North America (the United States, Canada, and Mexico), the European Union with extension to Morocco and Israel. In addition, under the LOI, a due diligence period was allowed and if both the Company and GHG were satisfied, GHG would have the exclusive option to acquire all the assets of Apollon, other than cash, cash equivalents, and receivables, for a payment of 771,191,266 GHG common shares at a deemed price of $0.015 per GHG common share, for a total consideration of C$11,567,869 ("Disposal"). The Disposal has been terminated by mutual consent.

Dr Stephen D Barnhill, CEO and Chairman of Apollon Formularies, commented: "Whilst the Disposal to GHG has now been terminated, the Company continues to retain all of its Assets and the Company is well placed to continue to grow its business globally. We are extremely pleased with our recent Exclusive License Agreement with PureCann Pty Ltd, as announced 24 July 2023. PureCann has already reached impressive commercial milestones allowing us to immediately expand the "Apollon" Brand with our full medical product portfolio for multiple medical conditions into South Africa through their network of dispensaries as well as in their proposed treatment facilities." Dr Barnhill continued: "The Company is currently in discussions with additional companies in multiple countries also looking to license the Apollon intellectual property and products. We look forward to continuing to expand the Apollon brand into additional markets globally."