CEO Letter - March 2025

Dear all,

I am pleased to write to you as Allied’s new Chief Executive Officer. Having worked as Chief Business Development Officer for the past 18 months - driving our commercial strategy, securing key partnerships, and restructuring operations - I have a deep understanding of what makes Allied strong and where we must focus to scale successfully.

With over US$ 15M in secured contracts across key international markets, Allied is now entering an exciting new chapter - one centred on the execution of commercial agreements, operational excellence, and long-term value creation. Since the leadership transition, significant steps have been taken to restructure the business and realign our strategy.

This letter outlines our core thesis, recent milestones and achievements, and key next steps to become one of the dominant suppliers of pharmaceutical-grade cannabis from cost-efficient jurisdictions.

OUR CORE THESIS

Since the start, the thesis for a Colombian cultivation facility has been clear:

• Cost-efficient & high-margin production: The ideal climate within Mesa de Los Santos near Bucaramanga combined with Colombia’s cost advantages, allows Allied to grow medical-grade cannabis year-round at a fraction of the cost per gram relative to Canadian and European peers.

• Cultivation & Pharmaceutical expertise: Successfully supplying medical markets requires precision in cultivation for consistency and pharma expertise to navigate the complex pharmaceutical supply chains. Allied’s core team has over 45+ years of cultivation and pharmaceutical expertise in Canada, Europe and Colombia. In conjunction with specialist agronomists from Colombia, we ensure consistent, pharma-grade production that meets strict European standards.

• Growing Medical Market: The medical cannabis industry is rapidly expanding, driven by regulatory tail winds and increased patient access. Since Germany’s decriminalization in April 2024, prescriptions have surged 1,000% [1], while the UK’s patient count doubled in 2024 [2]. With more countries like France and the Czech Republic advancing medical frameworks, Europe’s medical cannabis market is projected to grow from $2.5bn in 2024 to $12.6bn by 2033 [3], fueling further demand for consistent and cost-efficient supply.

• Colombia is a good place to invest : As a key trade partner for many industries, Colombia offers established supply chains, a stable political environment supportive of the cannabis industry and top agronomy and pharmaceutical talent. Moreover, the country legalized medical cannabis cultivation in 2016, allowed flower exports in 2022, and has seen growing industry discussions on expanding domestic market access.

As the industry matures, buyers are naturally shifting towards large-scale, cost-efficient pharmaceutical suppliers, and Colombia is increasingly recognized as a stable jurisdiction for cultivation. Allied has established itself as one of the few Colombian producers consistently exporting to regulated markets and is strategically positioned to capitalize on the next wave of growth in global medical cannabis adoption.

RECENT MILESTONES & ACHIEVEMENTS

During my tenure as Chief Business Development Officer and since the recent management changes, we have indeed made significant strides towards our global ambitions:

• Secured US$ 15M+ in contracts: Signed agreements worth US$ 15M+ with clients in Australia, Germany, the UK and Poland, supported by a strong pipeline across these key medical jurisdictions, among others – most of our contracts are generally multi-year and recurring in nature.

• Demonstrated export capabilities: Successfully executed over 10 international shipments to some of the most stringent markets, as well as established channel partners to enable our product lines into European and Australian medical markets. Of the 2,500 Colombian licenses issued in 2020 (now approx. 60 active), fewer than 20 companies have been able to export consistently to date.

• Quality, Infrastructure upgrades and EU-GACP readiness: Completed major infrastructure upgrades and quality system enhancements to adhere to EU-GACP principles. EU-GACP sets standards that enhance overall product quality, simplify our supply chain and allow us to expand client relationships in Europe. Allied also added new expertise, notably with Luis Soares joining as Global Quality Lead. Luis brings 25+ years experience in audit, regulatory and quality assessments for the pharmaceutical and cannabis industries (incl. roles at Inframed, Cannavigia, EMA, WHO, UN).

• Proven Production: Established a track-record of producing high-quality cannabis with consistent supply year-round at scale, while meeting the strictest quality standards (EU Pharmacopeia, TG93).

• Reinforced Leadership & Governance: Assembled a high-caliber leadership team with deep expertise in pharmaceuticals and a track record of global market expansion within regulated industries. Jim Smeeding (Chairman) brings 45+ years in pharmaceuticals and has scaled multiple companies from funding to sale. Simon Langelier (Director) has 40+ years in global regulated industries, including director at Imperial Brands and President at Philip Morris International. Abdul Musoke (Director) offers a strong background in M&A, financial structuring, and market expansion, positioning Allied for sustained success in global medical markets.

• Strengthened our Balance Sheet: Restructured payables and debt to remove approximately US$ 1.75m in liabilities, improving Allied’s financial stability to support our long-term objectives.

This progress would not have been possible without the dedication and expertise of our world-class team in Colombia. I am grateful to work alongside some of Colombia’s top talent and remain committed to strengthening our local partnerships and relationships as we scale.

WHAT’S NEXT ? EXECUTION & GROWTH

Over the next 12-18 months, our focus remains on building long-term shareholder and partner value through the following objectives:

• Executing existing US$ 15M commercial agreements: Delivering on signed client contracts is a prime goal to ensure contracted revenue materializes. This requires a consistent production and continuous improvement in our quality systems – both of which remain at the core of our execution strategy.

• Securing EU-GACP and working towards EU-GMP: After completing significant infrastructure upgrades and enhancements to our quality systems, we hosted our CUMCS GACP audit on 12-13 March 2025 – the business is now completing final steps to receive its certification. Thereafter, we plan to turn our focus on EU-GMP certification in 2026 to further improve margins, streamline our supply chains and further enhance product consistency and quality.

• Capacity expansion: To meet contracted demand, Allied needs to scale capacity with the addition of three new 1400 sqm greenhouses in 2025. Each greenhouse requires 2.5 months to build and given the Colombian advantages, return on investment can occur in as little as 2 months at full revenue capacity. As market demand increases, Allied can scale rapidly with the ability to have up to 9 additional greenhouses on its licensed land.

FINAL THOUGHTS & US$ 2M FINANCING OPPORTUNITY [4]

Allied is establishing itself as a first mover in Colombia, having successfully navigated pharmaceutical compliance, cannabis cultivation and global exports - milestones few local companies have achieved. More importantly, with significant contracted revenue and a rapidly growing medical market, we are entering an exciting phase of growth with a clear path to profitability. 

To accelerate this momentum, we have recently opened a US$ 2M financing round [4] to execute on our three core objectives over the next 12-18 months: deliver on US$ 15M signed commercial contracts, capacity expansion and gear up for EU-GMP certification. If you would like to learn more, request access to our teaser deck by clicking on the link here :

I look forward to helping grow Allied into a dominant medical cannabis supplier within cost-efficient jurisdictions and continuing to build long-term value for our shareholders and partners.

We will be hosting investor calls over the coming weeks. To arrange a call, please reply to this email, and our investment team will coordinate a time.

Warm wishes,

Michael Moses

CEO, Allied Corp

Investor Relations :

ir@allied.health

https://www.allied.health

Disclaimer and Forward-Looking Statements:

No regulatory authority assumes responsibility for the accuracy or adequacy of this release.

This press release includes certain statements that may be deemed "forward-looking statements" under U.S. and Canadian securities laws. Forward-looking statements relate to Allied Corp.’s anticipated developments, strategic objectives, performance, and market opportunities. These include, but are not limited to, statements regarding Allied’s growth in Colombia, Kelowna, Nevada, and other key locations; intellectual property filings; joint development and manufacturing initiatives; and planned product introductions.

Forward-looking statements can often be identified by terms such as "anticipates," "believes," "expects," "intends," "plans," "will," "may," and similar expressions. These statements are based on current assumptions, projections, and management’s experience, but are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Notable risks include, but are not limited to, regulatory risks associated with the cannabis industry and market changes ; risks related to competition within the cannabis and medical industries; risks related to potential operational and logistical challenges; risks related to market demand; risks related to economic conditions impacting growth and profitability; risks related to potential delays or adverse changes in project locations or expansion plans; as well as other risks. 

Though Allied endeavors to identify important factors that may impact actual outcomes, other unknown factors may also cause results to vary. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.

[1] Bloomwell Group. (January 2025). The Cannabis-Barometer – 2024 Medical Cannabis Market Trends in Germany.

[2] IMARC Group. (2024). Europe Medical Cannabis Market: Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2024-2033. Retrieved from https://www.imarcgroup.com/europe-medical-cannabis-market

[3] Cannabis Industry Council. (2025). 2024 Annual Report. Retrieved from https://www.cicouncil.org.uk/annual-report-2024

[4] The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.