Mr. Ian Campbell reports

NEURAL'S PORTFOLIO COMPANY HANF.COM ANNOUNCES SALES START OF RITUAL HERBS NICOTINE AND TOBACCO FREE PRODUCTS

Further to the press release of July 21, 2025, Neural Therapeutics Inc.'s portfolio company CWE European Holdings Inc., operating as Hanf.com, one of Germany's leading cannabidiol retailers, has received the first commercial shipments of Ritual Herbs products. Hanf.com holds exclusive distribution rights for Ritual Herbs in Germany, and sales have commenced across its channels.

The European nicotine-free herbal cigarette market is expected to more than double between 2022 and 2030, reaching an estimated $350-million (U.S.), reflecting broader consumer shifts toward products with improved wellness profiles compared with incumbent tobacco-based offerings. At the same time, cannabis consumption in Germany continues to increase, with past-12-month cannabis use rising from 4.6 per cent in 2012 to 8.8 per cent in 2021, and further to 9.8 per cent in 2024.

Smoking remains the predominant form of cannabis consumption in Germany, accounting for approximately 88.6 per cent of use. This dynamic positions Ritual Herbs' nicotine- and tobacco-free herbal blends as an accessible alternative base material for cannabis consumption, substituting tobacco where permitted under applicable laws. With an estimated addressable market exceeding 4.5 million consumers, a growing bricks and mortar retail footprint (currently 19 locations), a well-established e-commerce platform, and an expanding wholesale business, Hanf.com is well positioned to capitalize on this opportunity and drive incremental revenue growth.

"Securing exclusive distribution rights in Germany for the Ritual Herbs product line represents another meaningful growth catalyst for Hanf.com," said Ronnie Jaegermann, chief executive officer of CWE. "With our expanding retail footprint, strong on-line presence and growing B2B wholesale channel, we believe Hanf.com is becoming an important infrastructure partner to the German legal CBD and cannabis market. A broad and differentiated product portfolio is a key driver of consumer traffic in Germany, and Ritual Herbs further strengthens our competitive positioning."

About Neural Therapeutics Inc.

Neural Therapeutics is a leader in ethnobotanical drug discovery focused on developing therapeutic drugs for mental health conditions related to substance use disorders, including alcohol and opioid dependence. The company's innovative drug development strategy involves the use of subhallucinogenic doses of mescaline extract, with the objective of enhancing safety and scalability while maintaining therapeutic efficacy.

On May 26, 2025, Neural entered into a strategic investment and option agreement with CWE, a leading CBD and hemp retailer in Germany operating under the Hanf.com brand, pursuant to which Neural may acquire up to 100 per cent of CWE through a multistage transaction. The transaction is intended to expand Neural's commercial footprint in Europe while preserving its core focus on drug discovery and mental health innovation.

On Aug. 12, 2025, Neural and CWE completed the first stage of the transaction, pursuant to which Neural acquired a 30.75-per-cent ownership interest in CWE. Neural and CWE continue to work collaboratively toward subsequent stages of the transaction and will provides updates as material developments occur.

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