Mr. Travis Doupe reports

WILLOW ANNOUNCES COMMERCIAL LICENSE AND ROYALTY AGREEMENT WITH KALSEC INC.

Willow Biosciences Inc. has signed a commercial licence and royalty agreement with Kalsec Inc., a leading global producer of natural taste and sensory, food protection, colours, and advanced hops ingredients for the food and beverage industry. The agreement defines the financial terms for use of Willow's technology for scaling and manufacturing of a natural ingredient that adds to Kalsec's portfolio for use in savory food applications.

Through this commercial licence and royalty agreement, Willow expects to receive milestone payments for the first pilot and industrial batches followed by tiered royalty payments on net worldwide sales after launch. Kalsec will be responsible for regulatory, manufacturing, and sales and marketing costs. The natural ingredient resulting from this collaboration will allow Kalsec to pursue a larger market share in an existing $200-million global segment. Willow expects the research and development phase of the agreement to be completed in 2024 with regulatory and scale-up work to continue into 2025.

"We are excited to see our technology platform continue to deliver with the transition of yet another research program to commercial reality," said Dr. Chris Savile, Willow's president and chief executive officer. "Beyond the commercial benefits to both Willow and Kalsec under this agreement, we are proud to be partnering with an ingredient leader like Kalsec to bring safer, more sustainable natural products to consumers."

Dr. Roger Nahas, Kalsec's chief innovation officer, said: "We remain strongly committed to the sustainability and innovation benefits of bioconversion to generate affordable, effective and safe natural solutions to savory foods' toughest ingredient needs and challenges. We are very proud and excited to continue working with Willow and their talented and capable team."

About Willow Biosciences Inc.

Willow develops and produces precision fermented functional ingredients for the health and wellness, food and beverage, and personal care markets.

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