22 April 2022

Graft Polymer (UK) Plc

("Graft Polymer", the "Company", and together with its subsidiaries, the "Group")

Grant of patents

Graft Polymer Ltd. (LSE:GPL, "Graft Polymer", "the Company"), the polymer modification specialist, is pleased to announce the grant of patents from the Slovenian Intellectual Property Office ("SIPO") and from the Federal Intellectual Property Office ("FIPO") of Russia, covering the Company's proprietary self-nano-emulsifying drug delivery system ("SNEDDS") as well as other products.

The Company continues to develop multiple products for pharmaceutical, industrial and other customers, focussing on improved polymer performance and addressing customers' specific manufacturing and commercial challenges. Patents are an important element of the Group's intellectual property strategy.

Patents recently granted include:

-     SIPO 26056, covering self-emulsifying concentrate of cannabinoid-ionic complex and method for its preparation - we note the recent related announcement by MGC Pharmaceuticals Ltd. (LSE:MXC, ASX:MXC, "MGC Pharma")

-     FIPO 2765946, covering supersaturated self-nano-emulsifying drug delivery system for slightly water-soluble pharmaceutical compositions and method for its preparation

-     SIPO 26054, covering super-saturable oil-free self-nano-emulsifying drug delivery system for poorly water-soluble pharmaceuticals composition and procedure of preparation thereof

-     SIPO 26070, covering the method for industrial production of modified polymers and device for its realisation

-     SIPO 26071, covering the method for production of a modified polymer

In addition, the Company has recently been awarded two further patents by the FIPO. All these patents are held by, or are in the process of being transferred to, Graft Polymer UK IP, a wholly-owned subsidiary of the Company.

Victor Bolduev, CEO, commented, "Graft Polymer continues to actively develop products for our customers in multiple industries and to build our intellectual property portfolio. The grant of patents is a key element of our intellectual property strategy and an important milestone for the Company, enabling us to defend our profitability over several decades. We are delighted that our customers place their trust in our proprietary solutions for their specific challenges and we look forward in particular to continuing to work closely with MGC Pharma as its pharmaceutical business develops."

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For more information, please visit https://www.graftpolymer.com or contact:

About Graft Polymer

Graft Polymer is a UK incorporated holding company with an innovative research and manufacturing facility, based in Slovenia. The core business of the Group comprises polymer modification and drug delivery systems developments. Established in 2017, the Group has already introduced more than 50 products to the market.

The Group has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing, reducing material consumption, widening the choice of feedstocks, and reducing costs.

In particular, the Group's techniques allow the combination of otherwise incompatible polymers, facilitating the creation of polymer composites engineered at a molecular level, that combine the attractive properties of different input materials. This enables customers to receive a synergism of properties in polymer composites.

The solutions and products offered by the Group are designed to improve performance, reduce raw materials consumption, and enhance the physical characteristic values of finished products or improve or modify their chemical interaction. In the past several years, there has been increased emphasis by the industry as a whole on applications of grafted polymers, which are produced by monomers being covalently bonded and polymerised as side chains onto the main polymer chain (the backbone).

In 2020, the Group launched a new division named GraftBio to develop IP for Bio/Pharma applications. This includes a drug delivery system to support and provide solutions to the market, which had been heavily impacted by the COVID-19 pandemic. The GraftBio division is in the process of obtaining the HACCP certification for its production facility. The Group has developed a set of drug delivery platforms that enable it to licence its DDS platform (IP) to MGC Pharmaceuticals Limited ("MGC"; LSE: MXC) in relation to MGC's CimetrA™ and CannEpil-IL™ products. The Group expects to receive royalty payments resulting from the sale by MGC of CimetrA™ and CannEpil-IL™ products.