WILLOW BIOSCIENCES ANNOUNCES NEW FUNDED BIOPESTICIDES RESEARCH AND DEVELOPMENT PARTNERSHIP AFTER SUCCESSFULLY COMPLETING FEASIBILITY STUDY

After a successful feasibility study, Company expands into the high growth biopesticide sector with a funded research and development program to produce valuable natural ingredients using its precision fermentation platform

Program expected to generate over $2 million in revenue in first year with guaranteed payments of over $1 million in 2024

Company now anticipates revenue of over $4 million in 2024 on existing programs

SUNNYVALE, Calif., Aug. 7, 2024 /CNW/ - Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW) (OTCQB: CANSF), a leading biotechnology company focused on revolutionizing industrial manufacturing of pure, consistent, and sustainable ingredients, announces that it has signed a fully funded strain engineering program (the "Program") with an innovative Ag-Biotech company in the biopesticides sector.

"This is truly an exciting partnership for Willow, as it not only comes with significant near-term research and development and future commercial milestone payments, but also extends our technology and capabilities into the high growth biopesticide sector," said Dr. Chris Savile, Willow's President & CEO. "I am once again impressed with our team and technology platform for quickly demonstrating proof-of-concept and progressing to a full development partnership," continued Dr. Savile.

On June 26, 2024, the Company announced a feasibility program with an innovative Ag-Biotech company in the biopesticides sector. Today, the Company announced that after successfully completing the feasibility phase, it has now signed a funded research and development agreement (the "Agreement"). The Program is expected to take at least 12 months to complete, with guaranteed research and development revenue for Willow of $1.25 million within the first 6 months and an additional $1 million in research and development revenue in the following six months, with an option to extend, should both parties decide to continue. If successful, upon completion of the Program, the Company will receive significant commercial milestone payments, which are tiered based on the performance of the new strain. The research and development required to complete the Program will be completed using existing facilities, equipment and employees and will require minimal additional costs and resources.

Biochemical pesticides are naturally occurring substances that control pests through non-toxic, targeted mechanisms resulting in enhanced crop productions. According to Fortune Business Insights (fortunebusinessinsights.com, July 22, 2024), the global biopesticides market size is estimated to be $US 8.7 billion in 2024 with a compound annual growth rate of 15.9%. Biopesticides are typically safer and more environmentally friendly than conventional pesticides but can be challenging to produce at large scale.

About Willow Biosciences Inc.

Willow develops biobased processes to manufacture ingredients for pharmaceutical, food and beverage and consumer markets. Willow's FutureGrown™ and BioOxi™ platforms enable large-scale production with sustainability at its core. Willow's R&D team has a proven track record of developing and commercializing bio-based manufacturing processes and products to benefit our B2B partners and their customers. For more information, visit www.willowbio.com.

FutureGrown™ and BioOxi™ are registered trademarks of Willow Biosciences Inc.

READER ADVISORIES

Forward-Looking Statements

This news release may include forward-looking statements including opinions, assumptions, estimates and the Company's assessment of future plans, platforms, operations and expansion, and, more particularly, statements concerning: the completion of the Program in accordance with the terms of the Agreement, and receipt of funding relating thereto;; Willow's ability to successfully complete the Program and achieve the commercial milestones relating thereto; anticipated revenues, generally and from the Program; expansion into the high growth biopesticide sector pursuant to a new partnered program; the demand and market size potential of the synthetic ingredients and biopesticides industries; the growth rate of the biochemical pesticides; and the business plan of the Company, generally. When used in this news release, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions (or variations or negatives thereof) are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company which include, but are not limited to: the success of Willow's strategic partnerships, including the Program; the financial strength of the Company; the ability of the Company to fund its business plan using cash on hand and existing resources; the market for Willow's products; the biochemical pesticides market; the ability of the Company to obtain and retain applicable licences; the ability of the Company to obtain suitable manufacturing partners and other strategic relationships; and the successful implementation of Willow's commercialization and production strategy, generally. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: risks of the biotechnology industry in general; the success of the Company's research and development strategies; the Company's ability to complete the Program as set out in the Agreement; infringement on intellectual property; failure to benefit from partnerships or successfully integrate acquisitions; actions and initiatives of federal, state and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies; competition from other industry participants; adverse U.S., Canadian and global economic conditions; adverse global events and public-health crises; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company's most recent annual information form and management's discussion and analysis for additional risk factors relating to Willow, which can be accessed either on Willow's website at www.willowbio.com or under the Company's profile on www.sedarplus.ca.

Any financial outlook and future-oriented financial information contained in this document regarding prospective financial performance, financial position, cash balances or revenue, including the anticipated receipt of revenue of over $4.0 million in for 2024 on existing programs, including $1.25 million in guaranteed research & development payments in the first six months and an additional $1 million in the following six months under the collaboration agreement is based on assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future-oriented financial information or a financial outlook. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.

Financial information in this news release is expressed in Canadian dollars.

The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Third Party Information

Certain information contained herein has been obtained from published sources prepared by independent industry analysts and third-party sources (including industry publications, surveys and forecasts). While such information is believed to be reliable for the purposes used herein, Willow does not assume any responsibility for the accuracy of such information. The sources cited in this news release have not consented to the inclusion of any data from their reports, nor has Willow sought their consent.

SOURCE Willow Biosciences Inc.

For further information, please contact: Travis Doupe, Chief Financial Officer, [email protected]