Provexis, entered into an Alliance Agreement for Fruitflow® with DSM Nutritional Products ('DSM') in June 2010, with a contractual term which runs to 31 December 2022. Provexis announced in September 2021 that the Company and DSM were engaged in constructive negotiations working towards a new agreement for Fruitflow for the period after 31 December 2022 to replace the Alliance Agreement, and the Company announce that the parties have concluded their negotiations and have now entered into (i) a Transfer of Business agreement for Fruitflow and (ii) a Premix and Market-Ready Solutions supply agreement for Fruitflow, both to take effect from 1 January 2023. The Company is also delighted to announce the filing of a new patent application relating to the use of Fruitflow to confer health benefits in modulating the gut microbiome of humans.

This follows the completion of a successful human study, the results of which (as stated in the patent application) strongly support the use of Fruitflow for modulating gut microbiota to confer a number of health benefits. Under the terms of the two new agreements with DSM, and the new patent application: DSM will help facilitate the transfer of its wholly outsourced supply chain /production process for Fruitflow from DSM to Provexis with effect from 1 January 2023. A royalty will be payable to DSM on the gross profits generated from Fruitflow sales to customers transferred from DSM over the first four years of the Transfer of Business agreement.

From 1 January 2023 the net profit accruing to Provexis on sales of Fruitflow in the calendar year - on a pro-forma basis, assuming like for like sales and margins - would be materially ahead of the net share of the profit that would have accrued to Provexis with like for like sales and margins under the existing 2010 Alliance Agreement; on the same pro-forma basis, assuming like for like sales and margins, the net profit accruing to Provexis would further increase in each of the subsequent three calendar years.