• Bioxyne subsidiary Breathe Life Sciences UK Ltd receives £850,000 funding from South of Scotland Enterprise
• Funding to establish a UK medicinal cannabis manufacturing and distribution facility
• UK is the second-largest medicinal cannabis market in Europe after Germany

Bioxyne Limited (ASX: BXN), through its subsidiary Breathe Life Sciences UK Ltd (BLSUK), has received £850,000 in funding commitments from South of Scotland Enterprise, the economic development agency for the South of Scotland, to fit-out and establish its UK medicinal cannabis manufacturing and distribution facility. The funding comprises a five-year £500,000 loan facility and a grant award of £348,250.BLSUK has secured a site in the Scottish Borders region of equivalent size to its Australian facility, with the aim of becoming a significant provider of manufacturing and distribution services to the UK medicinal cannabis market. The fit-out of the site and application to the MHRA and Home Offices for the required Licences will be completed in 2026.The UK is currently the second-largest medicinal cannabis market in Europe after Germany, with UK patients having a higher average annual spend on medicinal cannabis, estimated at around £3,261 (€3,811) per patient in 2024, compared to approximately £1,342 (€1,563) in Germany. Bioxyne CEO Sam Watson commented that the existing manufacturing infrastructure in the UK is insufficient to keep up with local demand, presenting an opportunity for BLSUK to enter and grow with the market.BLSUK has a growing UK customer base, and the establishment of the UK facility is critical to offering clients the company's renowned quality and service levels, as well as replicating its Australian success internationally.

The company is confident that the UK market, which is seeing tremendous year-over-year growth, will underpin Bioxyne's continuous growth trajectory. The arrival of BLSUK is further confirmation that the South of Scotland region is an attractive destination for innovative life sciences companies.