Toronto, Ontario--(Newsfile Corp. - July 21, 2025) - Neural Therapeutics Inc. (CSE: NURL) (FSE: HANF) ("Neural" or the "Company"), an ethnobotanical drug discovery company focused on developing therapeutic drugs for mental illnesses related to substance use disorders, is pleased to announce two major developments that strengthen its ethnobotanical strategy: (i) its German partner CWE European Holdings Inc. ("CWE"), operating as Hanf.com, one of the Germany's leading CBD retailers, has secured exclusive rights (the "Distribution Agreement") to distribute Ritual Herbs, a premium line of German-crafted, herbal smoking blends developed by TFD GmbH.; and (ii) Neural has executed a new research agreement with Peru's national forestry authority, Servicio Nacional Forestal y de Fauna Silvestre ("SERFOR"), a key regulatory milestone in support of its mescaline-based drug development strategy.
Ian Campbell, CEO of Neural commented: "Finalizing the SERFOR contract in Peru enables us to continue critical research on mescaline-producing plants that could unlock new treatments for substance use disorders and ensures the continuity of our research programs in Peru. This agreement demonstrates our long-term commitment to regulatory compliance, ethical research practices, and scientific collaboration with local institutions. We are also proud to support CWE's partnership with Ritual Herbs, which gives consumers a natural alternative to nicotine and aligns with our mission to provide plant-based solutions for addiction recovery and metal wellness, while creating an opportunity to broaden Hanf.com's customer base and drive revenue growth once the transaction between Neural and CWE is completed."
Execution of SERFOR Contract for Continued Research on Mescaline-Producing Cacti
Further to Neural press release dated May 9, 2025, Neural is pleased to confirm that it has formally executed a new non-commercial access contract with SERFOR ("SERFOR Contract"), the Peruvian government authority responsible for regulating access to wild flora and fauna. SERFOR Contract, with an effective date of July 7, 2025, supports Neural's ongoing research on Echinopsis species (including San Pedro cactus), which form the botanical basis of its mescaline-based drug development pipeline. The SERFOR Contract is valid for a period of 9 months from the effective date.
The executed SERFOR Contract authorizes Neural, in collaboration with Cayetano University and Cactus Knize, to continue chemical and genetic analyses of previously collected Echinopsis specimens, including DNA sequencing and mescaline quantification. The contract reaffirms that no further wild harvesting will be conducted under the current permit and formalizes Neural's obligations regarding benefit-sharing, biosafety, and regulatory compliance. SERFOR Contract is a key milestone in maintaining regulatory continuity for Neural's ethnobotanical research in Peru and supports the Company's broader mission to develop safe, scalable, and ethically sourced treatments for substance use disorders.
Exclusive Distribution Rights in a Fast-Growing Global Market
The Distribution Agreement, effective July 15, 2025, marks a significant step for CWE in expanding access to natural, nicotine-free smoking alternatives for consumers seeking a conscious and intentional approach to wellness. The global market for herbal and nicotine-free smoking products is experiencing strong growth. The herbal cigarette market was valued at approximately USD 1.2 billion in 2024 and is projected to grow to over USD 2.5 billion by 2033, with a compound annual growth rate of 9.1%[1], driven by increasing consumer preference for additive-free and wellness-oriented products.
Under the terms of the Distribution Agreement, CWE will act as the exclusive distributor of Ritual Herbs branded products across Germany. The company will maintain minimum pricing standards, preserve the brand's identity and product integrity, and operate independently in all sales and marketing activities.
With a growing footprint of owned stores and franchises, as well as a high-traffic eCommerce site, Hanf.com will leverage its established position as a leading wellness-focused retail chain to bring these innovative products to Europe's largest consumer market.
Ronnie Jaegermann, CEO of CWE commented: "There is a growing recognition that quitting smoking isn't just a chemical battle-it's a deeply ingrained ritual for many people. At CWE, we believe in empowering consumers with natural, intentional tools to support their wellness journey. Our exclusive partnership with Ritual Herbs brings a unique, plant-based alternative to the German market-one that aligns with our broader mission of offering innovative solutions that address both physical and behavioral aspects of addiction."
About Ritual Herbs
The growing demand for plant-based, non-addictive alternatives has fueled interest in products that align with sustainable and health-conscious values. Ritual Herbs meets this demand by offering herbal blends free from nicotine, tobacco, and synthetic additives. The brand promotes a vision of smoking that is reflective, natural, and non-addictive. Produced in Germany using methods grounded in both tradition and modern science, blends features carefully, selected botanicals like mulleïn, damiana, blackberry leaf, mint, rosemary, turmeric, cinnamon, and others, providing a mild to moderate smoking experience.
Ritual Herbs products provide a sensory and behavioral substitute for nicotine-based tobacco without reinforcing the physical addiction. The act of smoking remains familiar-handling, rolling, inhaling-making it easier to address the psychological and habitual aspects of quitting. Soothing herbs like mullein and damiana may offer relaxing effects, easing withdrawal symptoms and reducing cravings. Since Ritual Herbs products do not contain nicotine, they avoid reinforcing chemical dependency, makes the products a potentially helpful transitional tool for individuals seeking to gradually quit tobacco use, while preserving the ritual.
A new ready-to-use herbal cigarette under the Ritual Herbs brand is expected to launch in late 2025, offering an accessible option for consumers who prefer convenience without compromising on natural quality.
About Neural Therapeutics
Neural Therapeutics is a leader in ethnobotanical drug discovery, focused on the development of therapeutic drugs for mental illnesses related to substance use disorders, including alcohol and opioid dependence. The Company's innovative approach to drug development involves the strategic use of sub-hallucinogenic doses of mescaline extract, enhancing safety and scalability while maintaining therapeutic efficacy.
On May 26, 2025, Neural entered into a Strategic Investment and Option Agreement with CWE European Holdings Inc., a leading CBD hemp retailer in Germany operating under the brand Hanf.com, to acquire up to 100% of CWE through a multi-stage transaction. The transaction is expected to expand Neural's commercial footprint in Europe while maintaining its core commitment to drug discovery and mental health innovation.
For further inquiries, please contact:
Neural Therapeutics Inc.
Ian Campbell, CEO
E: icampbell@neuraltherapeutics.ca
T: +1 (647) 697-NURL (6875)
Marc Lakmaaker
E: mlakmaaker@gmail.com
T: +1.647.289.6640
CAUTIONARY DISCLAIMER STATEMENT
No securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of the contents of this news release. This news release contains forward-looking statements ("FLS") regarding execution and anticipated outcomes of the Distribution Agreement with CWE, the expected launch and market reception of Ritual Herbs products, growth of the herbal smoking product market; the execution and regulatory impact of the SERFOR Contract in Peru; Neural's continuing mescaline research program; and Neural's strategic investment in CWE. FLS are often identified by terms such as "will", "may", "should", "anticipate", "expect", "plan" and similar expressions.
These statements are not statements of historical fact, but rather predictions about future events, which are inherently subject to risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results could differ materially from those projected in the FLS due to a variety of factors, including changes in consumer demand, regulatory developments, access to research materials, scientific outcomes, competitive pressures, and other risks detailed from time to time in the Company's public disclosure filings. Readers are cautioned not to place undue reliance on any forward-looking information. Although management considers such information to be reasonable at the time of preparation, may prove to be incorrect and actual outcomes may differ significantly. FLS contained in this news release are expressly qualified by this cautionary statement. The Company expressly disclaims any intention or obligation to update or revise such statements. A description of additional risk factors that may cause actual results to differ materially from FLS in Neural's disclosure documents posted on www.sedarplus.ca.
The securities of Neural have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws. The securities may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons" (as defined in Regulation S under the U.S. Securities Act), unless registered or exempt from registration under the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy Neural's securities in the United States or any other jurisdiction where such an offer or sale would be unlawful.
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[1] Verified Market Reports, Global Nicotine-free Herbal Cigarettes Market Size, https://www.verifiedmarketreports.com/product/nicotine-free-herbal-cigarettes-market/
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SOURCE: Neural Therapeutics Inc.
