A Month in the Life of an African Medical Cannabis Producer - January Edition:

As January swiftly passed, the team at MG Health continues to remain steadfast in our mission. The strategic focus we cultivated internally throughout December has proven invaluable. Transitioning from La Ni?a to El Ni?o weather patterns typically raises concerns for Southern Africa due to potential droughts and harsh conditions. However, we've been fortunate to experience optimal agricultural weather, greatly benefiting our operations.

Although we're fortunate to have favourable weather conditions, our primary focus remains on production and its inherent complexities. Our cultivation and manufacturing teams are diligently working to meet customer demands. Balancing the stringent regulatory requirements of our products with commercial operations remains a top priority, with an unwavering commitment to quality.

Message from our Director of Business Development – Luke Van der Nest :

Friday the 23rd?of March marked a monumental step forward in the global medical cannabis industry, as the German Bill on Cannabis Regulation “CanG Bill” was passed in the German Bundestag. This the biggest hurdle this new legislation has had to face to date, and the bill was voted through in its current state. Whilst this is the critical step forward, it must be noted that a final step remains before “the job is done”.?

This legislation needs to be finally approved at the German Bundesrat, which is a federal body formed by the various states in Germany. No changes to the Bill can be made at the Bundesrat but, if there is a majority vote, ?it can go to what is referred to as mediation. This in essence means that the law would have to go through a further process and debate. If any changes are made, it will have to be passed again at the Bundestag before it lands in the Bundesrat for another shot at final approval. So, whilst the hardest work has been done, it must be clear that there is still room for delay if the Bill’s opposition manages to garner support from sufficient states to block this at the federal level and send the law for a rewrite. This process is due for the 3rd?week in March at the Bundesrat and is a moment we will be watching with keen excitement.?

The headline points in the CanG Bill centre around the decriminalisation of the plant in Germany, but the most relevant aspect to the medical industry is the removal of cannabis from the list of scheduled narcotics in the country. This is a major step forward in easing patient access to medical cannabis through doctor’s prescription and pharmacy channels, and we welcome the change wholeheartedly. Germany is well on its way to enabling responsible access to medicine that has the potential to help many.

Our current state is one of cautious optimism for the future of medical cannabis in Germany, and we look forward to closely watching the developments throughout March as the CanG makes its way through what?could be?the final legislative steps, and onto implementation in April.

Cultivation:?

The cultivation team has put more emphasis on a very effective procedure whereby the Cultivation Management team conducts comprehensive inspections across all production areas every day. From scouting grow rooms to assessing plants from cloning to flowering stages, we meticulously plan the next day's activities for optimised efficiency. No detail is overlooked, as we carefully inspect lawns, pavements, equipment, and machinery during these tours. This refined approach has significantly enhanced our operations.

Data collected during these inspections is seamlessly integrated into our application. By 06:45 am the following day, detailed reports are printed and distributed to each cultivation section, outlining the day's tasks. This streamlined communication process has proven invaluable to our team, facilitating smooth workflow and task prioritisation.

Furthermore, this provides the platform for the cultivation personnel to voice their insights, opinions, and questions regarding departmental and company-wide operations in subsequent meetings. This open dialogue fosters a collaborative environment geared towards continual improvement and innovation.

Manufacturing:

One of the most integral parts of our manufacturing department is the Quality Control (QC) department, which is headed up by Thabang Rants'o . This department ensures that we are able to reaffirm our commitment to producing premium Cannabis products through stringent quality control measures. Our In-Process Quality Controls (IPQC) serve as vital checkpoints throughout the manufacturing process, ensuring any defects are identified and rectified promptly.

Additionally, our dedication extends to comprehensive testing by Third Party Laboratories, adhering rigorously to Pharmacopeial standards. This meticulous approach guarantees that only the highest quality products reach the market, underscoring our commitment to excellence and consumer satisfaction.

Environmental, Social, and Governance:

Since our workforce is approximately 300 employees strong, our operations impact both the environment and the community, necessitating a robust Environmental and Social Management Plan (ESMP). Mandated by the Environmental Impact Assessment (EIA), the ESMP precisely outlines mitigation measures, extending its scope to surrounding areas like Marakabei village and Mantsonyane Hospital.

Our objectives include identifying impacts, implementing effective measures, ensuring accessibility for stakeholders, monitoring compliance, and updating the plan as operations evolve. Sub-plans such as Construction and Waste Management, Biodiversity, and Community Relations address various aspects, fostering environmental sustainability and community well-being. Through the ESMP, we stride towards a more sustainable, harmonious future.