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: “I 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.”

Cliff Noorlander, CEO of Beneficial Insectary, says: “I look forward to continuing my excellent
working relationship with Casey within this new setting. It consolidates our long-standing
relationship with Sierra Biological. We’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. Sierra’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.