Beneficial Insectary Acquires Sierra Biological Inc.

California and New York:

Beneficial Insectary Inc. and Sierra Biological Inc. today announced the closing of a transaction
whereby Beneficial Insectary acquired 100% of the equity in its distributor Sierra Biological Inc.
This transaction consolidates a long-standing and successful collaboration between the two
companies whereby Sierra Biological, in addition to commercializing a limited range of products
produced in-house, mainly distributes products manufactured by Beneficial Insectary.

Casey Decker, managing director of Sierra Biological, says: ā€œI am pleased to see this transaction
close. It is a logical and mutually beneficial way to give our excellent collaboration with
Beneficial Insectary a more structural and permanent character. I will continue to lead Sierra
Biological and will further operate as an independent distributor with a regional focus in the
Northeast. My clients value our quality, reliability, and personal service. The logistical and
administrative benefits of a closer relationship with Beneficial Insectary will mean I can
dedicate more of my time to serving their needs.ā€

Cliff Noorlander, CEO of Beneficial Insectary, says: ā€œI look forward to continuing my excellent
working relationship with Casey within this new setting. It consolidates our long-standing
relationship with Sierra Biological. Weā€™ll be able to realize many operational synergies which
will allow Casey to focus even more on serving his customers. As part of the Biobest Group, I
value the independence with which Beneficial Insectary can continue to operate and grow. I
firmly intend to work in the same spirit with Sierra Biological. In addition to operational
synergies, Sierra Biological brings certain in-house production and research programs. We look
forward to the opportunity to further develop these relying on the resources and know-how of
the group. Sierraā€™s technologies include nematodes and new technologies to control cannabis
pests, which we will aim to leverage as part of our offering to this important market segment.