SKIN.L Regulatory News (SKIN)

AIM share code: SKIN

2 August 2019

Integumen PLC

("Integumen" or "Company")

Integumen notes Highlands agreement with Cellulac plc to supply hemp-derived CBD for medical grade conversion

Integumen to use Cellulac converted CBD for Its skincare and Wound pHase wound care products

Integumen is pleased to note Highlands Natural Resources plc's ("Highlands") announcement that it has entered into a two-year agreement to provide hemp-derived CBD grown under quality-controlled conditions, with less than 0.2% THC, to Cellulac plc (9.35% owned by Integumen plc) for conversion to medical grade CBD. This will then be incorporated into, and tested on, Integumen plc's CBD infused wound care "Wound pHase" and STOER range of skincare products.

Under the agreement, Highlands will supply CBD to Cellulac for the conversion into medical grade CBD, who will then submit the finished products to Integumen's Labskin test facilities. The CBD will be infused on to Integumen's WoundpHase and STOER range of wound care and skin care products, providing a vertically integrated farm-to-finished product.

Gerard Brandon - CEO of Integumen, comments:

"We are delighted to to be part of this agreement with Highlands. To satisfy regulatory authorities in multiple jurisdictions, it is necessary to identify the origin of each plant and confirm the supervised growth from seed, extraction and shipment. The CBD market is still evolving, so it is imperative that any CBD infused treatments in wound care and skin care are subject to the highest testing standards, scientific verification and validation prior to product launch."

Robert Price - Executive Chairman and CEO Highlands, comments:

"With over 110 varieties of hemp, there is a requirement to provide quality hemp-derived CBD to meet specifications for the medical, cosmeceutical and pharmaceutical sectors, grown under supervised quality-controlled conditions. Our state-of-the-art, 33,000-foot indoor hemp growing facility in Colorado, US, offers the quality and consistency grade needed to meet those requirements and we welcome the recognition of the quality products and the opportunity to collaborate with Cellulac and Integumen to deliver consumer products for wound care and skin care consumer products in the shortest possible time."

CBD and Pain Relief:

The human body makes its own version of exocannbinoids (THC and CBD) called endocannabinoids which bind to two receptors CB1 and CB2. These endocannabinoids operate like neurotransmitters, switching on and off nerves. These, in turn, spark or dampen the electric pulses that creates thoughts, behaviours and movements. Tetrahydrocannabinoil ("THC"), the psychoactive substance that creates a high feeling, has a strong affinity to CB1, whereas CBD, with less than 0.2% THC does not typically interact with CB1 but can trigger a response to the body's endocannabinoids. Researchers, including Dr Joseph Cheer, a neurobiologist at the University of Maryland who specialises in cannabinoids, suggest that CBD switches off electrical pulses associated with pain by tweaking the amount of calcium that can get inside the body's nerves1.

Labskin has already successfully tested CBD demonstrating anti-microbial and anti-inflammatory effects in skin-care with the Company's STOER For Men cosmetics products, and is currently testing CBD infused female hygiene products at the Company's Labskin test facility in York, UK.

Wound Care Growth:

The incidence of chronic wounds is growing with approximately 1-2% of the USA population sustaining chronic wounds during their lifetime, leading to approximately 6.5 million incidences at an annual cost of approximately US$25 billion. In Europe, wound management costs approximately €6650-€10,000 per patient and consumes 2-4% of European healthcare budgets.

Patients with diabetes are also at high risk of wound infections. Approximately 387 million people have diabetes, and this number is predicted to increase by 205 million by 20352.

1. https://www.pbs.org/newshour/science/is-cbd-legal-heres-what-you-need-to-know-according-to-science

2. https://doi.org/10.1016/j.tibtech.2018.04.004

Contacts

About Integumen:

Integumen is a vertically integrated business, collaborating their Labskin technology platform with partners in artificial intelligence, clinical research, medical device and life science. These collaborators are building their own technology on top of the Labskin AI backbone. Labskin allows skin-care, health-care, pharmaceutical manufacturers and cosmetic companies to test their products on human-like skin in a real-world environment with full access to multiple state-of-the-art partner technologies.

The Company combines data analytics with access to therapeutic operational expertise and offers solutions to our clients, from regulatory approvals, right through to marketing fully tested ingredients that have been certified on our Laboratory grown living human tissue.

Notes to Editors:

CBD (Cannabidiol) oil is an extract from the Cannabis Sativa plant. Hemp-derived CBD is produced from the seeds of the plant and does not contain the psychoactive ingredient Tetrahydrocannabinol (THC) or does so only in trace amounts. This differentiates hemp-derived CBD oil from CBD Oil produced from flowers, leaves and stalks of the plant (which are higher in THC content). CBD products which contain less than 0.2% THC concentration are legal in the UK.