Exclusive agreement through 2027 and 2028 is estimated to generate $20-$30 million in revenue
Positions BioHarvest in sustainable rare luxury fragrance manufacturing
BioHarvest to target additional collaborations in the high-margin rare fragrance space

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - August 11, 2026) - BioHarvest Sciences Inc (NASDAQ:BHST) (FSE: 8MV0), a leader in Botanical Synthesis technology and sustainable plant-based molecule development, today announced an exclusive manufacturing and supply agreement that secures production of a rare, endangered, fragrance plant cell culture, extending terms of the original Agreement ("the Agreement") with its existing fragrance partner, an undisclosed* customer based in the United Arab Emirates (UAE). This particular scent is widely regarded as one of the most valuable fragrance raw materials in the world, with premium grades commanding prices exceeding tens of thousands of U.S. dollars per kilogram and demand growing across the Middle East, Asia, and luxury Western perfume markets.

Under the terms of the agreement, BioHarvest will serve as the exclusive manufacturing partner for the Company's proprietary unique fragrance cell culture composition and will reserve manufacturing capacity to support the anticipated commercial requirements. Specifically, BioHarvest will prepare to start limited production in the first half of 2027 and the agreement anticipates planned production volumes totaling 20 metric tons of a product with specifications to be finalized over the course of the next few months. Contingent upon delivery of the product, this could allow BioHarvest to recognize between $20-$30 million in revenue at the time of completion.

"We are extremely pleased that we have secured this strategic commitment to manufacture this compound derived from a rare, scent-producing plant used in the global luxury fragrance industry. After demonstrating commercial success with VINIA® in the health and wellness space and expanding into food ingredients opportunities through our collaboration with Tate & Lyle, we are enthusiastic to be able to extend our Botanical Synthesis platform into the global luxury, rare fragrance market where we believe our saffron development will also play a role. Planning industrial-scale manufacturing of up to 20 metric tons demonstrates the confidence our partners have in Botanical Synthesis as a next-generation manufacturing platform for rare plant-derived molecules. We believe this agreement is an early validation of what could become a significant new fragrance business for BioHarvest."

The UAE customers' principal added, "Our vision has always been to redefine how the world's most precious fragrance ingredients are produced. BioHarvest's Botanical Synthesis platform offers a unique combination of authenticity, sustainability and industrial scalability that we believe has the potential to disrupt and transform the premium fragrance industry. This manufacturing agreement is an important milestone as we prepare for commercialization and the introduction of a new generation of plant-based fragrance products."

Dr. Rakib continued, "This supply agreement further validates Botanical Synthesis as a horizontal industrial biology platform capable of serving multiple high-value industries from a common technology foundation and demonstrates its growing commercial momentum. Though our technology is applicable to the four industrial production areas of nutraceuticals, nutrition, cosmetics/cosmeceuticals and pharmaceuticals, we are keen to secure partnered programs in the fragrance industry within cosmetics, not only because it represents a multi-billion-dollar global market, but also since this industry has the potential to yield higher margins than other industry sectors. Additionally, this industry is virtually absent of any regulatory bottlenecks and is experiencing significant supply challenges The fragrance market is increasingly seeking sustainable, traceable and reliable sources of premium natural ingredients, and we believe our Botanical Synthesis technology allows us to be uniquely positioned to become a preferred manufacturing platform across this industry. Accordingly, we view the fragrance industry as an optimal area for us to apply our technology and will continue to focus on securing new contracts in this area as a driver of our CDMO business."

About the Rare Fragrance Development Program

The fragrance being produced is from a rare and endangered plant that is subject to overharvesting and habitat loss. In March of this year, BioHarvest announced successful "Stage 1" completion, in what the Company believes to be the first-ever successful creation of a stable cell culture for this rare and endangered fragrance plant.

BioHarvest has been able to reproduce, consistently and at scale, the sesquiterpenes and chromones in the fragrance. These are natural plant compounds valued in precious and commercial scents for their slow evaporation. They also give the scents their base-note depth and long-lasting quality.

The global fragrance industry continues to seek sustainable alternatives for sourcing rare natural ingredients as environmental pressures, supply constraints and consumer demand for responsibly produced luxury products continue to increase. BioHarvest believes its Botanical Synthesis platform can fundamentally change the production of high-value rare fragrance molecules by enabling year-round manufacturing of authentic plant-derived compounds with consistent quality, independent of agricultural or forestry constraints.

In May of this year, BioHarvest secured its Stage 2 contract with this partner, which the Company believes marked the completion of the most difficult technical hurdle in the R&D process, positioning the company for commercial production in 2027. The completion of these milestones position BioHarvest to enter the growing premium fragrance segment, estimated to represent a $23B market opportunity within the global $58.9B scents and fragrances industry. BioHarvest has a 20% ownership stake in this developed composition.

About BioHarvest

BioHarvest (NASDAQ:BHST) (FSE: 8MV0) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based compounds, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and manufacturing organization (CDMO) on behalf of customers seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products based on its botanical synthesis technology. To learn more, please visit www.bioharvest.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on management's current expectations, beliefs, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. For the CDMO Services Business Unit, there is no assurance of additional future contracts, and readers are cautioned that increased revenue is not necessarily an increase in net income or profitability as costs will likely increase as well. There is no assurance that signed research agreements will proceed past a contracted stage, or that a developed molecule or compound will be commercialized or will generate royalties to the Company. Commercial manufacturing and delivery of the fragrance compound is contingent on the composition under development meeting specific sensory parameters. There is no guarantee that the final product will be suitable for commercial purposes and that the Agreement will generate revenue. Successful commercialization of this fragrance compound, or of any compound developed will be subject to consumer preferences, advertising budgets and other factors affecting market acceptance of new products which are uncertain and cannot be assured. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by applicable law. Additional information is contained in the Company's SEC filings, available at http://www.sec.gov.

Footnotes:

*The identity of the plant compound and the partner firm are protected under a non-disclosure agreement as part of The Agreement between BioHarvest and the partner firm.

BioHarvest Company Contact:

Dave Ryan, VP Investor Relations
(604) 622-1186
info@bioharvest.com

Investor Relations Contact:

Chuck Padala, Managing Director
LifeSci Advisors
chuck@lifesciadvisors.com

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