Press release 

22 April 2022

Cellular Goods PLC

('Cellular Goods' or 'the Company')

Publication of white paper on sustainability of lab-produced cannabinoids

Cellular Goods (LSE: CBX), a UK-based wellness company that provides premium products formulated with lab-made cannabinoids, today announces the publication of a new white paper, 'Production of Cannabinoids Using Biotechnology and Synthetic Chemistry as a Path to Sustainability', which explores the improved sustainability and increased purity of lab-based production of cannabinoids when compared with traditional agricultural production.

Until recently, global demand for cannabinoids, primarily driven by sales of cannabidiol (CBD), has been satisfied by agricultural cultivation of the cannabis sativa plant from which these are extracted. However, this is a highly inefficient process. Cannabinoids make up just 2-5% of the plant by mass, which leads to approximately 90% of the plant ending up as botanical waste. Additionally, agricultural production is plagued by high land and water use, yield variability, potential microbial and chemical contamination and crop loss.

With the global market for CBD increasing by an annual compound growth rate of 21.3%, the market is expected to grow from US$4.9 billion in 2021 to US$47.22 billion by 2028, according to Vantage Market Research. Attempting to satisfy this increased demand with agricultural methods is likely to have a significant environmental cost and cause a production bottleneck, the white paper warns. (Source: Vantage Market Research, 2022, Cannabidiol Market Projected to Reach Valuation of USD 47.22 Billion by 2028).

Cellular Goods' white paper also reveals that biotechnology and synthetic chemistry allow cannabinoids to be produced at a commercial scale with increased purity, upwards of 95%, and significantly decreased environmental drawbacks compared with agricultural production. To produce 1,000kg of cannabigerol (CBG), a rare breakthrough cannabinoid, outdoor production requires 208% more time, and requires 40 acres of land, where lab-based production requires less than one acre. Furthermore, in outdoor CBD production, Carbon Dioxide (CO2) emissions are 44 times higher than by biosynthesis and requires 333 times more water. For biomass waste, biosynthesis produces 99.93% less waste than agricultural production.

Cellular Goods' products are exclusively formulated with lab-produced cannabinoids, and this white paper demonstrates how the Company remains committed to ethically and sustainably sourcing the components of its products.

The white paper is available to view here.

Anna Chokina, Chief Executive Officer, commented: "The publication of today's white paper illustrates our continued commitment to creating environmentally conscious, efficacy-led products. Cellular Goods exclusively uses lab-produced cannabinoids in its products, and this decision is fully vindicated by this white paper.

"Not only is the production process more sustainable, requiring less land, water and producing greatly decreased biomass waste and carbon emissions than agricultural production, but lab production gives the opportunity to increase production without suffering systemic and biological restraints. Use of lab production provides a greater ability to respond to any increases in demand in the cannabinoid space, as consumers become increasingly conscious of the effective skincare and wellness applications of cannabinoids."

Istok Nahtigal, Head of Process and Applied Sciences, commented: "Our research has further evidenced Cellular Goods' existing belief that lab-production methods for producing cannabinoids are the future. As consumers become increasingly environmentally conscious, it is important to prioritise ecological methods of production. Lab-production is a win-win for the Company, as it is not only more sustainable, but produces purer, higher quality products."

For further information please contact:

About Cellular Goods PLC:

Cellular Goods is a UK-based wellness company that provides premium products based on lab-made cannabinoids. It was established in August 2018 to develop efficacy-led and research-backed cannabinoid-powered wellness products. The initial focus is on three product verticals: Function Better, Feel Better and Look Better. These three verticals encompass Cellular's premium CBG skincare and CBD ingestible and topical athletic recovery products, with the first products launched in December 2021 initially through the Company's website. The Company's shares are listed on the main market of the London Stock Exchange. www.cellular-goods.com