Rua Bioscience Shareholder Newsletter August 2021

Nau mai haere mai,
welcome to
Rua Bioscience
Rua Bioscience listed on NZX in October 2020. This is the first in
a regular series of newsletters designed to keep you up to date
with the latest information and developments from Rua. As well
as being a recap of our top stories, we hope you’ll find other
information that will give you insight into the market in which
we operate, and the way we conduct ourselves as a company
committed to creating cannabinoid-based medicines that
change people’s lives from right here in Te Tairāwhiti.
We hope you enjoy reading this newsletter and, if you have any
feedback, please let us know. You can email us at
info@ruabio.com

Thanks for joining us.
Ngā mihi nui,
Rob Mitchell
CEO, Rua Bioscience
Rua Developing Industry-Leading
Agritech with University of Waikato
Rua and our development partner, the University of Waikato,
recently announced a ground-breaking, two-year research
programme to investigate the application of hyperspectral
technology to the cultivation and assessment of medicinal
cannabis, paving the way for Rua to enter New Zealand’s
booming agritech sector.
In simple terms, the technology would provide a means
of scanning the cannabis flower, immediately providing
information on the plant’s chemical makeup as well as the
presence of any pests or disease. Our expectation is that this
will enable growers to identify both crop management issues
and optimal harvesting times.
Primarily driven by global demand for medicinal cannabis,
commentators expect the cannabis testing industry to be
worth around $2.5bn (US $1,806 million) by 2025
1
. Current
analytical methods for product testing present significant
challenges for commercial cannabis growers. Testing requires
the destruction of product, is expensive, and the turn-around
time for results delivery means there can be significant
delays to decision-making.
Our researchers anticipate real-time monitoring using
hyperspectral imaging will change all that, with the potential
to transform the way the global medicinal cannabis industry
qualifies, assesses and manages its crops.
At the end of our two-year proof-of-concept project, we hope
to prototype an automated, near-infrared imaging system
that will enable the on-site assessment of individual cannabis
plants in real-time without destroying any product.
We expect it’ll revolutionise our internal cultivation practices
(and by owning the IP for the cannabis industry) position
us well to develop and market world-class agritech for the
global cannabis industry - enhancing Rua’s competitive
position and contributing to future revenue opportunities.
Shareholder Update
August 2021
Image - Callaghan
Innovation scientist
working with current
hyperspectral
technology. Rua
hopes to develop a
mobile version of this
technology for use in
the field in real-time
without destroying
any product.

The German market is Europe’s most mature medicinal
cannabis market and currently the largest single market
for GMP (pharmaceutical) grade cannabis globally, with
regulations enabling physicians to prescribe medicinal
cannabis at their discretion for a range of conditions. In
addition to these broad prescribing rights, medicinal
cannabis is also reimbursed by the German Statutory Health
Insurers for a number of conditions, improving affordability.
Rua Bioscience CEO, Rob Mitchell, explained the importance
of Germany to Rua in the following way. “In order to
generate revenue as quickly as possible for Rua, we intend
to make sales of our cannabis through wholesale exports of
pharmaceutical grade dried flower into Germany. In March
2020, we signed a supply contract with German distributor
Nimbus Health. Nimbus is a significant player in the German
market - it’s a leading supplier of pharmaceutical-grade
medicinal cannabis products for patient prescriptions. In
March we successfully completed our first trial export to
Germany, testing our packaging and export processes by
sending 70g of dried flower to Nimbus”.
Good Manufacturing Practice (GMP) is an important phrase in
the medicinal cannabis manufacturing industry, and one you’re
going to hear a lot as Rua and our fellow medicinal cannabis
businesses prepare to bring product to market.
GMP is a globally recognised set of minimum standards that
describe the systems that manufacturers of medicines must
have in place to ensure their products are consistently safe,
effective, and of acceptable quality. GMP certification of
Rua’s facilities and products is a prerequisite for commercial
production, and resulting sales into local and global markets.
Once GMP is secured, we’re given the green light to
manufacture product. But GMP is issued on a product-by-
product basis. So, every time we want to introduce a new
product to market we must go through the same process. Each
time though, the process is less onerous as many of the things
we do and have to manage are common to most medicines.
While GMP is a significant milestone, it’s not the only process
we must go through. After GMP, each product requires the
submission of a New Product Application and must go through
Ministry of Health’s Quality Standard assessment.
The process seems long, for Rua – two years in the planning
and nine months in the formal audit process. But it’s mandatory
for all pharmaceuticals and something we were aware of from
the outset. As mentioned, we aim to have product for New
Zealand patients by early 2022.
Getting to know the German Medicinal
Cannabis Market
GMP Certification
What is it and why is it important?
The German market for medicinal cannabis products continues
to rapidly grow. In the year ending 30 June 2021, 313,500
prescriptions for medicinal cannabis products were reimbursed
for German patients, valued at €177m ($298m)
2
. These
reimbursed sales are complimented by a substantive private
paying market with an estimated additional value of €100m
($169m). Since use of cannabis for medicinal purposes was
legalised in 2017, 60m patients have received treatment for a
wide range of conditions.
Pain is the most common indication for which medicinal
cannabis is prescribed in Germany and, together with spasticity
and anorexia, makes up 90% of all prescriptions.
Mr Mitchell says he’s pleased to see the German market
remains as robust as predicted.
“Manu Caddie, (Co-founder of Rua Bioscience) and the team
from New Zealand Trade and Enterprise put a great deal of
effort into exploring Rua’s export options, and the team is
working diligently to make product available for the German
market. It’s been a long road, but it’s encouraging to see the
German market continues to show robust growth”, Rob says.

There has been a lot of media and public interest in
New Zealand’s Medicinal Cannabis Scheme and what
improvements are needed for our evolving industry. While
Rua’s major commercial focus is on the development
of global markets, we have always been committed to
supporting a sustainable sector here in Aotearoa. As such,
our position has been consistent and worth exploring for all
shareholders.
As you’re probably aware, the Scheme took effect from 1
April 2020, and improved patient access to cannabinoid-
based medicines by allowing GPs and registered prescribers
to prescribe products for any ailments. It also enabled a
dynamic new industry; companies such as Rua pioneering
this emerging sector.
What might surprise you is that, in the pharmaceutical
world, it can take companies 10-15 years to bring a product
to market. Like many in our industry, Rua anticipates having
product for New Zealand patients in the first half of 2022;
just two years on from the launch of the Scheme. That in
itself should be celebrated. It is a testament to the tenacity
of industry pioneers and a regulatory framework which
considers the needs of both patients and the industry.
But we believe a profitable, sustainable and patient-focused
New Zealand industry could be hugely encouraged by some
simple regulatory changes over the next six to 12 months.
CEO Spotlight on the New Zealand
Medicinal Cannabis Scheme
Our top five industry gamechangers:
1. A subsidy for cannabis-derived medicines, which, taken
in context of New Zealand’s drug framework, we believe
would enhance affordability and enable widespread
access amongst patients.
2. Provisional consent to medicines with Phase 1 and 2
clinical trial data. This would permit some marketing to
healthcare professionals.
3. Low-dose CBD (which has a low risk profile) should be
made available over the counter at pharmacies only.
4. ACC and MSD should fund all legitimate Medicinal
Cannabis prescriptions for their clients.
5. We would like the Government to recognise the standards
and requirements of each export jurisdiction on a case-by-
case basis.
While we continue to develop our export-led strategy, we
believe we are stronger together. So, we will continue to
advocate on behalf of our industry, shareholders and New
Zealand’s growing number of medicinal cannabis patients.

Dates of Interest
Nga ra whakahirahira
Navigating our
Year End
Tuhono Mai
This time of the year can be a busy one for shareholders,
with lots of information shared by companies.
Above, we’ve included some dates of interest, but there’s a
couple we’d like to explain in more detail.
30 August, we’ll release our Annual Results. This will include
a full set of audited financials for the 12 months ended
30 June 2021 accompanied by high level commentary on
our operational and financial highlights for context. In
accordance with our disclosure obligations, we’ll have this
up on the NZX and Rua websites. You should also get an
email from us via the team at Computershare. At 11am, Rua
will host a conference call for all interested investors at
which our CEO and CFO will talk through the results. You’ll
find the link to register to the right.
17 September, we’ll formally advise you of the Annual
Meeting. Your Notice of Meeting includes the agenda, the
links for attending online, the resolutions, voting instructions
and your voting papers. On this date, we’ll also make our
Annual Report available. This will give you much deeper
insight into the company, our achievements for the year
and our aspirations into the future. Again, we’ll have this up
on the NZX and Rua websites. You should also get an email
from us via the team at Computershare. Those who have
elected to have a physical copy of the Annual Report will
have theirs posted out.
19 October is the date of our Annual Meeting. This is a
hybrid meeting hosted in Gisborne with the option to
attend and interact online. The Annual Meeting presents
a great opportunity to meet the team kanohi ki te
kanohi (face-to-face) to get a real sense of the Company
and those driving the kaupapa. As mentioned, all your
instructions will come with the Notice of Meeting in
September, and we hope we’ll see you there.
Accessing Rua’s Annual Results Conference Call. Rua
Bioscience will host our Annual Results Investor conference call
at 11am. Management will review the FY21 results and discuss
the Company’s performance and outlook.
You can register for the call at: https://s1.c-conf.com/
diamondpass/10015791-mas1pa9.html. You will receive the dial-
in number and personal pin upon registration, allowing direct
entry to the call. A calendar invitation will be emailed together
with a reminder email prior to the call.
If you do not pre-register in advance then, at the time of the
conference, you can:
Dial:
Auckland................... 09 929 1687
Christchurch............. 03 974 2632
Wellington................ 04 974 7738
19 August Director Nominations opened
30 August Annual Results released
6 September Director Nominations close
17 September Notice of Meeting and
Annual Report released
27 September Community Roadshows in
– 1 October Te Tairāwhiti
17 October ASN Proxy Voting closes
19 October Annual Shareholder’s Meeting
Provide conference
ID:10015791
*We recommend dialling
in 10 minutes prior to the
scheduled call time.

In May, Dr Andrea Grant took up a pivotal role with Rua as
Chief Commercial Officer (CCO).
Dr Grant will drive our domestic and global commercialisation
and business development strategy, her first priority to lead
Rua’s global expansion into key markets.
Dr Grant brings 20 years of business development
experience in the pharmaceutical and biotech industries
globally. Dr Grant comes to Rua from Janssen Cilag Pty
NZ (the pharmaceutical business of Johnson & Johnson),
where she was the Market Access Manager responsible for
commercialising innovative medicines to NZ patients.
Her global experience in biotech includes senior business
development roles at Incyte and Galapagos, both during their
early stages of transitioning to fully integrated pharmaceutical
companies, as well as Management Director of Living Cell
Technologies.
Dr Grant will also add value to Rua’s global commercial
discipline, her experience garnered from working with
pharmaceutical stalwarts like Janssen and Roche.
Rua Bioscience CEO Rob Mitchell says, “Andi is an exciting
hire for the company as we prepare to enter both the German
and domestic markets and develop our IP strategy across the
medicinal cannabis value chain.”
Andi has carved out an outstanding international career
focused on the commercialisation of medical innovations
in the pharmaceutical and biotech sectors across the UK,
Europe, USA, NZ and Asia.
“She’s a proven value creator, skilled negotiator and vastly
experienced leader who knows how to bring novel products
to market. She is also a great fit for Rua’s unique vision and
kaupapa,” he says.
Dr Grant says she’s thrilled to join Rua Bioscience.
“Rua’s long-term vision to become a fully integrated
pharmaceutical company is eminently achievable, especially
given the company’s laser focus on driving revenue that we
can reinvest on securing IP” she says.
Rua Recruits CCO with global
pharmaceutical and biotech experience
In my view, Rua is the most advanced New Zealand-
based medicinal cannabis company in regards to product
development progress to date, as well as its ability to
commercialise its assets and IP.

Ponotanga
Mauitanga
Oranga
Whakawhanaungatanga
We value diversity and act
with integrity.
We’re future-focused, celebrating
courage, curiosity and innovation.
We’re passionate about the health
of whānau and our whenua.
We collaborate for success.
References
1. Markets and Markets, 2021.
2. Market Data Report – The German Cannabis Market – Q2 2021
Our vision at Rua Bioscience is simple – to create cannabinoid
based medicines that change people’s lives.
We’re focused on becoming a leading producer of medicinal
cannabis formulations for patients around the world. We
have a social mission that sets us apart – creating sustainable
economic opportunities for the people of Te Tairāwhiti.
Following the NZX listing rules, the NZX website is the first
place we make all required announcements to the market.
Here we first release information including our financial results
and Annual Report, director and senior management changes,
meeting notices, market updates, major transactions... a range
of things it’s important shareholders know. It’s worth visiting
regularly - www.nzx.com/instruments/RUA.
You can also keep up to date with our performance and all the
latest company news by following the company online via:
facebook.com/ruabioscience
linkedin.com/company/rua-bioscience
instagram.com/ruabioscience
Computershare maintains Rua Bioscience’s share register. If you
have any questions about your shareholding, please contact
the Computershare team on +64 9 488 8777 or email them at
enquiry@computershare.co.nz.

To contact Rua Bioscience, please email us at info@ruabio.com
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Ngā Uara
These pou underpin everything we do as a successful,
sustainable, and trusted partner that creates value for our
people, communities, shareholders, and other stakeholders.
At Rua, we operate with a simple but important set of values: