Devonian Signs a Binding Letter of Intent with Histapharm Inc. to Extract and Manufacture Their Proprietary Botanical Pharmaceutical Product and to Enter into a Strategic Partnership for the Development of New Products

QUEBEC CITY–(BUSINESS WIRE)–Devonian Health Group Inc. (“Devonian” or the “Corporation“)
(TSXv:GSD), a clinical stage biopharmaceutical corporation focused
on developing a unique portfolio of botanical prescription drugs and
cosmeceutical products, and Histapharm Inc. (“Histapharm”), a
company pioneering the control of histamine level in various
dysfunctions, announced today that they have signed a binding
Letter of Intent (“LOI”) to negotiate the terms establishing Devonian as
the exclusive site for the extraction and manufacturing of Histapharm’s
proprietary botanical drug. Histapharm’s product targets the degradation
of histamine being a different approach compared to treatments using
antihistamine technologies. The LOI also includes the set-up of a
Strategic Partnership focused on the development of new products for
dermatological applications.

Under the LOI, Devonian will be the exclusive site for the extraction
and manufacturing of the botanical drug containing diamine oxydase
(DAO). Furthermore, under the Strategic Partnership, Devonian and
Histapharm will develop new products, derived from the combination of
their respective platforms, products and know-how. In order to
facilitate the Partnership, Histapharm intends to set up its head office
in close proximity to Devonian. The Manufacturing Agreement must be
executed within the next 150 days and the Strategic Partnership by
November, 30, 2019.

“We are pleased to leverage our R&D and manufacturing assets. By finding
a reliable partner, Devonian expects not only to increase its revenues,
but also to further focus on its core expertise and strength, that is
the development of botanical prescription drugs with a strong franchise
in dermatology. The Strategic Partnership with Histapharm will add
another Active Botanical Ingredient (ABI) to our pipeline for the
development, approval and commercialization of novel products within the
dermatology therapeutic area,” said Dr Andre P. Boulet, President and
Chief Executive Officer of Devonian.

“Access to Devonian facilities will allow Histapharm to be the first
worldwide producer of vegetable-based diamine oxidase in a powder
format, positioning Histapharm in a niche market covered and protected
by our intellectual properties,” said Guy Bilodeau, President and Chief
Executive Officer of Histapharm.

About the transaction

The completion of the definitive agreements is subject to additional
conditions, including but not limited to various board of directors’
approvals of Devonian and Histapharm, as well as third party’s consents
on terms satisfactory to Devonian and Histapharm and certain other usual
conditions. The completion of the definitive agreements is subject to
the approval of the TSX Venture Exchange and all other necessary
regulatory approvals. There can be no assurance that the transaction
will be completed as proposed or at all.

Update on interest settlement announced on March 29, 2019

The Corporation has, by press release dated March 29, 2019, announced
the payment of accrued and unpaid interest on convertible debentures
issued and outstanding by the issuance of subordinate voting shares (the
“Shares”) and units.

Aspri Pharma Inc., an insider of the Corporation, had received only
Shares, unlike other subscribers who received units consisting of Shares
and Warrants. In the interest of fairness, the Corporation has filed an
application for exemption with the TSX Venture Exchange (the “Exchange”)
in order for Aspri Pharma Inc. to also obtain warrants. The Exchange has
agreed to grant the exemption. As a result, the Company issued 173,831
warrants to Aspri Pharma Inc. Each warrant entitles its holder to
subscribe one Share at a price of $ 0.38 per Share on or before April
23, 2021.

About Histapharm Inc.

Histapharm is a Canadian company pioneering the control of histamine
level in various dysfunctions by oral administration of the plant enzyme
– histaminase (called also Diamineoxidase DAO). This enzymatic botanical
drug therapy consists in reducing inflammation through degradation of
histamine and hydrogen peroxide. The enzyme-containing product can
prevent exacerbation of symptoms related to various dysfunctions linked
to histamine excess (mastocytosis, histaminosis) or to inhibition of DAO
(i.e. diabetes). Considering the actual high unmet needs, Histapharm is
developing the first botanical enzymatic product for people living for
many years with symptoms which become worst with disease progression.
Histamine is a trigger factor in dysfunctions for which patients are
recommended long-life a low-histamine diet and medication including
anti-histaminic drugs.

About Devonian

Devonian Health Group Inc. is a late stage biopharmaceutical corporation
with novel therapeutic approaches to targeting unmet medical needs.
Devonian’s core strategy is to develop prescription botanical drugs from
plant materials and algae for the treatment of inflammatory-autoimmune
diseases including but not limited to ulcerative colitis and atopic
dermatitis. Based on a foundation of over 15 years of research,
Devonian’s focus is further supported by a US-FDA set of regulatory
guidelines favouring a more efficient drug development pathway for
prescription botanical drug products over those of traditional
prescription medicines. Devonian is also involved in the development of
high-value cosmeceutical products leveraging the same proprietary
approach employed with their pharmaceutical offerings. Devonian Health
Group Inc. was incorporated in 2013 and is headquartered in Québec,
Canada where it owns a state-of-the art extraction facility with full
traceability ‘from the seed to the pill’. Acquired in 2018, Altius
Healthcare Inc., its commercial division, brings opportunities for
further diversification and growth potential. Devonian is traded
publicly on the TSX Exchange (TSXv:GSD).

For more information, visit www.groupedevonian.com.

Forward Looking Statements

This press release contains forward-looking statements about Devonian’s
objectives, strategies and businesses that involve risks and
uncertainties. These statements are “forward-looking” because they are
based on our current expectations about the markets we operate in and on
various estimates and assumptions. Actual events or results may differ
materially from those anticipated in these forward-looking statements if
known or unknown risks affect our business, or if our estimates or
assumptions turn out to be inaccurate. Such risks and assumptions
include, but are not limited to, Devonian’s ability to develop,
manufacture, and successfully commercialize value-added pharmaceutical
and cosmeceutical products, the availability of funds and resources to
pursue R&D projects, the successful and timely completion of clinical
studies, the ability of Devonian to take advantage of business
opportunities in the pharmaceutical and cosmeceutical industries,
uncertainties related to the regulatory process and general changes in
economic conditions. You will find a more detailed assessment of the
risks that could cause actual events or results to materially differ
from our current expectations in Devonian’s prospectus dated April 21,
2017 under the heading “Risk Factors” related to Devonian’s business. As
a result, we cannot guarantee that any forward-looking statement will
materialize. We assume no obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason, unless required by applicable
securities laws and regulations.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contacts

Dr André P. Boulet, PhD
President and Chief Executive Officer
Devonian
Health Group Inc.
Telephone: (514) 248-7509
Email: [email protected]m