Mr. Pat McCutcheon reports

POWER LEAVES PARTNERS WITH COLOMBIA'S LARGEST CONTRACT MANUFACTURER, UNLOCKING CERTIFIED CAPACITY TO CONVERT COMMERCIAL PIPELINE

Power Leaves Holdings Corp. has formed a strategic manufacturing partnership with Tropical Crop SAS, Colombia's premier industrial contract manufacturer, to scale production capacity, open domestic and export channels, and accelerate the conversion of the company's commercial pipeline into revenue.

For more than a century, decocainized coca extract -- the namesake flavour ingredient in Coca-Cola -- has been controlled by a single company operating out of a single permitted facility. Formulators and global CPG (consumer packaged goods) brands seeking access to this high-value natural ingredient have had no alternative source. Power Leaves is the second, and, with Tropical, it now pairs that supply chain with automated, fully certified industrial manufacturing capable of serving Tier 1 buyers at commercial scale.

Two products, already priced and selling

Power Leaves commercializes two proprietary products, both produced from the same leaf under the same exclusive licence and at the same facilities:

• Coca X (Coca Extract) is a proprietary extract optimized for flavour and aroma and the foundational ingredient for the global food and beverage market. Target markets include soft drinks, energy drinks, functional and active-lifestyle beverages, flavoured waters, and ready-to-drink coffee and tea.
• Coca E (Coca Essence) is a highly aromatic, terpene-rich concentrate developed for dilution into spirits and adult beverages. Target markets include gin, vodka, tequila, hard seltzers and ready-to-drink cocktail formats.

Both products carry a target price of $100 per litre based on supply agreements executed to date.

"Tropical gives us in a single step what would otherwise have taken years to build: automated industrial capacity, FDA [Food and Drug Administration], INVIMA [Instituto Nacional de Vigilancia de Medicamentos y Alimentos] and HACCP [Hazard Analysis Critical Control Point] standing, and a direct route into the largest retail networks in Colombia and Latin America," said Pat McCutcheon, chief executive officer of Power Leaves. "It lets us scale Coca X and Coca E to commercial volume and qualify for Tier 1 customer audits at the same time while putting our own capital where it compounds fastest -- into extraction. We are now working to execute similar arrangements in the United States on the same model. This is the partnership that turns our pipeline into purchase orders."

Tier 1 industrial infrastructure and capacity

Tropical operates three state-of-the-art production facilities in Colombia. Their engineering capabilities and manufacturing standards are trusted by the region's largest retail networks and mass-market consumer brands. The partnership with Tropical is expected to accelerate Power Leaves' speed-to-market across domestic and international trade channels through:

• Automatic Tier 1 certifications: Tropical holds active FDA food-manufacturing registration, INVIMA compliance and HACCP certifications, reducing lengthy certification lead times and facilitating qualification under international Tier 1 customer quality audits.
• Capital-efficient scale-up: Leveraging Tropical's industrial infrastructure allows Power Leaves to bypass massive capital expenditure on packaging lines and quality systems, preserving capital to finance core extraction.
• Expanded domestic and global market access: Tropical serves as a primary supply chain backbone for Colombia's largest retail networks, including Olimpica (400-plus stores), Givaudan, Symrise, Makro and Isimo. This infrastructure gives Power Leaves immediate operational leverage to capture market share within Colombia and rapidly process bulk volumes for export to Europe and the United States.

Under the partnership, Tropical serves as an industrial-scale packaging, formulation and quality-certifying partner. Power Leaves maintains direct control over its proprietary leaf procurement, extraction and decocainization processes at its Cohetando campus, delivering concentrated extracts to Tropical for automated high-volume blending, packaging and regulatory sign-off.

To further accelerate time to market and bypass import friction, Power Leaves is actively advancing similar contract manufacturing and co-packing partnerships within the U.S. domestic market.

Production scale-up

To meet the company's robust pipeline demand, Power Leaves is executing a disciplined, capital-efficient production scale-up, with target capacity as shown in the attached table.

These targets represent an approximately 83-fold increase on current annualized capacity. Work under way includes expanded extraction at the Cohetando facility, industrial packaging through Tropical, establishment of in-house quality assurance/quality control testing for finished product, increased head count at the facilities, and the future potential pursuit of organic, kosher, halal and non-GMO (genetically modified organism) certifications aligned to commercial demand.

Converting the pipeline

Power Leaves' active commercial pipeline comprises more than 100 companies across the global food, beverage and ingredient sectors. Tier 1 counterparties have subjected Power Leaves to multiyear legal, regulatory and formulation diligence, including a U.S. flavour house that invested hundreds of thousands of dollars across a two-year evaluation, a U.S. co-packer whose approved formulations were validated through client focus groups, and four additional Tier 1 global entities that have completed full diligence on the company's Colombian supply chain.

With certified capacity through Tropical and expansion under way at its own facilities, Power Leaves is positioned to move these opportunities from diligence to signed supply. The company expects initial commercial orders from major pipeline counterparties in the coming weeks, followed by scaled, larger-volume purchase commitments as additional capacity is commissioned.

About Power Leaves Holdings Corp.

The company is breaking the monopoly on the supply of coca leaf extract and ushering in a new age of coca. Through an exclusive licence agreement with the Nasa indigenous community in Colombia, the company has developed the first-ever legal Colombian supply chain for decocainized coca extract to supply the global food and beverage markets. Its infrastructure comprises three purpose-built facilities in the Neiva region of Colombia -- a manufacturing campus for extraction and decocainization, an INVIMA-registered research and development facility, and an FDA-registered formulation and packaging facility. The company is commercializing two proprietary products, Coca Extract and Coca Essence, as novel, all-natural ingredients for the global food and beverage market.

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