EXMceuticals Inc. has secured a supply agreement-in-principle of pharmaceutical/medical grade cannabis ingredients totalling a minimum of 8,400 litres of extracts in 2021. EXM signed these agreements to ensure access to GMP-compliant pharmaceutical and medical grade cannabis for its planned Portugal-based refinery. EXM has also signed an outline LOI with one of these counterparties for the offtake of the eventual supply of finished ingredients. Farmceutica Wellness, a supplier of medical-grade CBD ingredients, will initially supply up to 4,200 kg of pharmaceutical grade cannabis ingredients to EXM annually. EXM intends to purchase up to 9,400 kg annually after the refinery is fully equipped. A separate LOI is under negotiation for bulk THC importation. Farmceutica also signed an outline LOI that will give it the ability to distribute the refined cannabinoids manufactured in the refinery, with a focus on the active pharmaceutical ingredients. These agreements will provide sufficient input material to begin operations at EXM's facility as soon as it becomes operational. Assuming the required funding is received, this is expected to be in First Quarter 2021. The refinery will turn raw material and extract into pure finished ingredient products, all under EU-GMP. Distillates, isolates and active pharmaceuticals ingredients will initially be sold on a B2B basis. Once revenues are achieved EXM will then seek to enhance revenues by creating final customer products that have been formulated in the existing R&D laboratory in Lisbon. EXM is in discussions with other selected emerging producers of GMP compliant cannabis in Portugal, and around the world, that will produce extract to the highest quality standards. This position in the middle of the supply chain, will hopefully allow EXM to emerge as the largest contract manufacturer for the European medical market, either on a principle or toll basis.