CBX.L Regulatory News (CBX)

Press release

2 February 2022

Cellular Goods PLC

("Cellular Goods" or "the Company")

Cellular Goods publish white paper exploring the role cannabinoids can play in preventing the signs of skin aging

Cellular Goods (LSE: CBX), a UK-based wellness company that provides premium products formulated with lab-made cannabinoids, today announces the release of a major new white paper, 'Cannabinoids for the Prevention of Aging', which explores the benefits cannabinoids, namely cannabidiol (CBD) and cannabigerol (CBG), can have for the skin by preventing the signs of aging.

Inherent aging and external factors, such as inflammation and exposure to UV light can cause wrinkles and fine lines, and make the skin lose its elasticity and volume. Within the cosmetics industry a wide range of skincare products rely on active ingredients such as Vitamin C, retinoids and exfoliating acids, to help address signs of aging, in a substantial anti-aging skincare market that is projected to reach US$47.8 billion by 2027.

To date Vitamin C, retinoids, and exfoliating acids are the active ingredients that have dominated this market, while they have proven to be effective in addressing signs of aging skin, they are also known to cause skin irritation and sensitivity. For the 50-60% of men and 60-70% of women who report some degree of sensitive skin, these side effects can hinder the long-term and routine use of these ingredients and therefore the ability of end users to benefit from regular and irritation-free use of anti-aging products. This has created a need for alternative products that harness ingredients that are effective in addressing skin aging without the worrying side-effects common to the current industry-standard ingredients.

Cellular Goods' white paper reveals that CBG, CBD and their blends are capable of counteracting the well-established aging effects of both UV exposure and inflammation, equally and in some cases more effectively than Vitamin C. This significant finding is made more impactful by the fact that Cellular Goods' products have been proven suitable for sensitive skin, thereby confirming that their cannabinoid formulations (unlike many other skincare products containing anti-aging ingredients, including Vitamin C) can be used without causing skin irritation.

Owing to these properties CBG and CBD are well positioned to emerge as key ingredients in the skincare market.

Cellular has incorporated these findings into its range of cannabinoid age prevention products, which have been dermatologically tested and shown to be suitable for sensitive skin. The first product in this range is Cellular Goods' Cannabinoid Face Serum, a breakthrough formula designed to prevent signs of aging that is the first CBG-powered skincare product in the UK.

The white paper is available to view here.

Anna Chokina, Chief Executive of Cellular Goods, said: "Cellular Goods is on a mission to become the most innovative listed wellness company and the release of today's white paper shows our commitment to the ground-breaking science that will drive the industry forward. CBD and CBG have very promising skincare applications and we are delighted to be able to share our findings. Delivering efficacy-led and research-backed products is at the heart of the Cellular brand ethos and this approach will ensure that our products take full advantage of all the benefits that lab-made cannabinoids can offer.

"We are proud to be the first to bring products formulated with CBG to the UK. CBG is the most promising cannabinoid for skincare applications and pioneering its use sets Cellular apart from the competition."

Alexia Blake, Head of Product Development and Product Research at Cellular Goods, said: "Cellular Goods is the first to offer science-backed skincare solutions that leverage the potent anti-inflammatory and antioxidant properties of high purity lab-made cannabinoids to provide consumers with targeted solutions for aging prevention.

"From sensitivity through to irritation, some of the active ingredients in traditional anti-aging products such as retinoids and Vitamin C have unpleasant side-effects that can prevent their regular use and impact those with sensitive skin. Our research, which has provided further insight into the properties and safety of cannabinoids, demonstrates that cannabinoids possess unique benefits that enable them to fill this gap and usher in a revolution in skincare."

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Notes to Editors

'Cannabinoids for the Prevention of Aging' is authored by Alexia Blake, who leads Product Development and Product Research at Cellular Goods. She is a pioneer in the North American cannabis industry with a proven track record of developing efficacious products based on science and clinical evidence. Leveraging her food industry experience, she began her career in the cannabis space at MedReleaf Corp., one of the first Canadian producers of medical cannabis to receive a license from Health Canada. While at MedReleaf, the company became one of the largest global producers of legal cannabis and was eventually acquired in 2018 by Aurora for $2.5 billion. Alexia led the development of Aurora's global CBD portfolio for the health and wellness market before joining LAVVAN Inc., a leading company focused on commercialising high-quality cannabinoid ingredients produced using biosynthesis for the health, beauty, food, beverage and pharmaceutical markets.

About Cellular Goods PLC:

Cellular Goods is a UK-based wellness company that provides premium products based on lab-made cannabinoids. It was established in August 2018 to develop efficacy-led and research-backed cannabinoid-powered wellness products. The initial focus is on three product verticals: Function Better, Feel Better and Look Better. These three verticals encompass Cellular's premium CBG skincare and CBD ingestible and topical athletic recovery products, with the first products launched in December 2021 initially through the Company's website. The Company's shares are listed on the main market of the London Stock Exchange.