paradigm capital report<div> <font size="1">Scale-up Central: WLLW Forms Pact Noramco for Cannabinoid Biosynthesis Platform Development</font></div> <div> <font size="1">Cannabis Sector Investment Thesis. Companies that develop empowering technologies and robust evidence for the clinical use of cannabis will distinguish themselves not only in clinical and medical applications of cannabis, but also in adult-use (recreational) cannabis markets. With evidence from gold-standard clinical trials comes physician adoption. With physician adoption comes Pharma buy-in: the gateway to a >US$2T global Pharma market.</font></div> <div> <font size="1">Event</font></div> <div> <font size="1">Willow Biosciences (WLLW) announced an exclusive joint development agreement (JDA) to build a yeast-based biosynthesis platform with Noramco (private), a leading industrial-scale manufacturer of controlled chemicals based in the U.S.</font></div> <div> <font size="1">Highlights</font></div> <div> <font size="1"> WLLW-Noramco JDA Enables Scale-up and Distribution of Pure CBD by Biosynthesis | WLLW announced its exclusive JDA with Noramco to collaboratively develop a yeast-based biosynthesis platform for the production of CBD.</font></div> <div> <font size="1">o WLLW—with its expertise in gene discovery, biochemistry, and molecular biology, and with management’s heritage from Canadian biotechnology companies Epimeron and BioCan Technologies—will be responsible for optimizing its yeast-based cannabinoid production platform.</font></div> <div> <font size="1">o Noramco—with its long track record of producing and distributing high-purity controlled substances at large scale—will be responsible for scale-up, regulatory submission, and marketing and distribution of the CBD end product</font></div> <div> <font size="1"> Noramco Is Quietly Dominating the Pure Cannabinoid Supply Universe | Formerly the opiates production unit of Johnson and Johnson (JNJ), Noramco is a DEA-licensed producer of controlled substances with a long, international client list. While Noramco manufactures a wide variety of controlled active pharmaceutical ingredients (APIs), from amphetamines to naloxone, the company has recently placed a special focus on manufacturing cannabinoids by chemical synthesis.</font></div> <div> <font size="1">o Noramco has the capability of manufacturing APIs to the multi-tonne scale and has developed synthesis routes for more than 30 cannabinoids product.</font></div> <div> <font size="1">o In the realm of cannabinoid drug development, Noramco has agreements with some key names: Cardiol Therapeutics (CRDL), Emerald Bioscience (EMBI), Axim Biotechnologies (AXIM); Teewinot Life Sciences (private).</font></div> <div> <font size="1">Conclusion</font></div> <div> <font size="1">This deal illustrates that even a global chemical manufacturer such as Noramco understands the advantages of biosynthesis technologies. As such, we view this agreement between WLLW and Noramco as very positive for both companies:</font></div> <div> <font size="1">o WLLW gains Noramco’s experience bringing technologies from the lab to industrial scale, its vast manufacturing infrastructure, its expertise in controlled substance compliance and transport, and its international distribution networks.</font></div> <div> <font size="1">o Noramco gains an innovative cannabinoid production methodology through WLLW’s biosynthesis technology, which could, among the multiplicity of benefits associated with biosynthesis, reduce Noramco’s production costs markedly, benefiting the company and all of its clients.</font></div> <div> <font size="1">Rahul Sarugaser, PhD, MASc, Analyst | 416.216.3564 | rsarugaser@paradigmcap.com Michael W. Freeman, MASc | 416.361.9080 | mfreeman@paradigmcap.com</font></div> <div> <font size="1">All figures in C$, unless otherwise noted.</font></div> <div> <font size="1">Companies Highlighted in this Note:</font></div> <div> <font size="1">Algae-C (private)</font></div> <div> <font size="1">Amyris Inc. (AMRS)</font></div> <div> <font size="1">Axim Biotechnologies Inc. (AXIM)</font></div> <div> <font size="1">BioCan Technologies Inc. (private, now WLLW)</font></div> <div> <font size="1">Cardiol Therapeutics Inc. (CRDL)</font></div> <div> <font size="1">Cellibre (private)</font></div> <div> <font size="1">Demetrix Inc. (private)</font></div> <div> <font size="1">Emerald Bioscience (EMBI, formerly Nemus Bioscience)</font></div> <div> <font size="1">Epimeron Inc. (private, now WLLW)</font></div> <div> <font size="1">Ginkgo Bioworks (private)</font></div> <div> <font size="1">Hyasynth Biologicals Inc. (private)</font></div> <div> <font size="1">Intrexon Corp. (XON)</font></div> <div> <font size="1">Invizyne Technologies Inc. (private)</font></div> <div> <font size="1">Johnson and Johnson (JNJ)</font></div> <div> <font size="1">Noramco (private)</font></div> <div> <font size="1">Purissima (private)</font></div> <div> <font size="1">Renew Biopharma Inc. (private)</font></div> <div> <font size="1">Teewinot Life Sciences Corp. (private)</font></div> <div> <font size="1">Willow Biosciences Inc. (WLLW)</font></div> <div> <font size="1">Recent Notes Covering the Cannabis Space</font></div> <div> <font size="1">Advancing Texas Bill Expands Medical Cannabis Program 100-Fold, All Served by Just 3 Cultivators (link)</font></div> <div> <font size="1">ZENA-Farmako Biosynthesis Deal: Transcending Borders for Cannabinoid Manufacturing (link)</font></div> <div> <font size="1">Paradigm Biosynthesis Conference: A Summary (link); All Speaker Presentations (link)</font></div> <div> <font size="1">TRST Raising US$200M; Highlights Biosynthesis Development; Q1/19 Guidance Looking Good (link)</font></div> <div> <font size="1">Biosynthesis for the Whole World to See: The Economist Shines a Light on Syn Bio (link)</font></div> <div> <font size="1">FDA Public Hearing Looking for Clarity on How CBD in Food, Drink, and OTC Products Will be Regulated (link)</font></div> <div> <font size="1">FL to Boost Early Entrant Dispensary Caps | AMRS’ US$10M Biosynthesis Milestone | VFF Doubles Capacity | TLRY’s Studies Reaffirm Clinical Focus (link)</font></div> <div> <font size="1">AMRS US$300M Biosynthesis Deal—Precursor to a Tsunami of Coming Cannabinoid Biosynthesis Deals (link)</font></div> <div> <font size="1">Cannabinoid Biosynthesis: Engineering the Most Disruptive Technology in the Cannabis Industry (link)</font></div> <div> <font size="1">Shoppers Launches Medical Cannabis Portal: LPs Generating Clinical Data Will Win in Medical Market (link)</font></div> <div> <font size="1">Big Pharma Getting in Bed with Cannabis: Tilray Deal with Sandoz (Novartis) Goes Global (link)</font></div> <div> <font size="1">Momentum Building in Clinical Cannabis (link)</font></div> <div> <font size="1">Where My Margins At? Medical. That’s Where (link)</font></div> <div> <font size="1">How to Launch a Pharmaceutical Cannabis Drug: GW Pharma’s Plan for Its FDA-Approved Epidiolex (link)</font></div> <div> <font size="1">Cronos Deal with Ginkgo Bioworks—Strong Move Toward the Most Disruptive Technology in the Cannabis Industry (link)</font></div> <div> <font size="1">Volume II: The Evidence for Cannabis as Medicine (link)</font></div> <div> <font size="1">Volume I: Medical Cannabis, A Biochemical Cosmos (link)</font></div> <div> <font size="1">HEALTHCARE</font></div> <div> <font size="1">Paradigm Capital Inc. | IIROC/TSX member Page | 2</font></div> <div> <font size="1">Medical Cannabis</font></div> <div> <font size="1">RESEARCH NOTE | June 5, 2019</font></div> <div> <font size="1">The new fleet of cannabinoid biosynthesis companies should soon be making similar arrangements, including (all private): Algae-C, Cellibre, Demetrix, Hyasynth, Invizyne, Purissima, Renew Biopharma, and many others.</font></div> <div> <font size="1">o While unconfirmed, we expect that incumbent players in the biological manufacturing space—e.g. Amyris (AMRS), Ginkgo Bioworks (private), Intrexon (XON)—have a firm grasp on what is required to scale product and would have in-place relationships with contract manufacturers (or its own production plants).</font></div> <div> <font size="1">o “Beginning with the end in mind”—i.e. designing a lab-scale process that is suited to industrial scale—is a common expression among groups experienced in the bio-based manufacturing space; the concept is critical to the commercial success products</font></div>