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Pharmagreen Biotech Aims to Restructure Debt, Protect the Company and Its Shareholders

Carson City – (NewMediaWire) – August 11, 2020 – Pharmagreen Biotech, Inc. (OTC:
PHBI), a company specializing in the development of highest quality tissue
cultured starter plantlets for the cannabis and hemp industry, announced today
that the Company has voluntarily filed for petitions for relief under chapter
11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Nevada (the “Court”).

“As we started to execute on
our business plan, earlier this year before the spread of COVID-19, we
completed financing that carried toxic terms after 6 months. Due to the
Pandemic, our ETN process got delayed as Europe shut down for over two months,
and these notes became due and as result these lenders are seeking very toxic
conversions that would essentially wipe out the company’s valuation. After
taking much time to carefully analyze our strategic options, we have decided
that a voluntary chapter 11 filing provides the best possible outcome for
Pharmagreen,” said Pharmagreen Biotech CEO Peter Wojcik. “We plan to engage all
our lenders to settle debts in a way that is fair and beneficial for all
parties going forward.”

The Company has filed customary motions with
the Bankruptcy Court that will allow, upon Bankruptcy Court approval, the
Company’s ability to continue operations in the ordinary course of business,
including, among other things, payment of suppliers and vendors and the use of
cash collateral. These motions are typical in the Chapter 11 process and the
Company anticipates that they will be approved shortly after the commencement
of its Chapter 11 case. The Company plans to use the Chapter 11 process to
build a comprehensive restructuring plan that will allow the Company to emerge
from Chapter 11 with a manageable balance sheet.

“We are working non-stop on expediting the
in-court restructuring that will allow us to maintain our operational momentum
and uphold the obligations we have to our shareholders,” says Wojcik. “We could
not allow these toxic lenders to harm our company any further and the
investments made by our loyal shareholders.”

“We feel that we can secure necessary
additional funding and, coupled with Pharmagreen Inc.’s ETN asset backed bond
scheduled to begin trading on the European markets in the near future, we can
successfully exit this process with a more successful future.”

About Pharmagreen Biotech, Inc. and WFS
Pharmagreen Inc.

WFS
Pharmagreen Inc. is a wholly owned Canadian based subsidiary of Pharmagreen
Biotech, Inc., a publicly traded (OTC PINKS: PHBI) company.  WFS
Pharmagreen Inc. is a cannabis company that is becoming the largest producer of
cannabis plantlets through a proprietary tissue culture process with the
opportunity to become one of the largest players globally.  Pharmagreen’s
mission is to advance the technology of tissue culture science and to provide
the highest quality 100% germ-free, disease-free and all genetically the same
plantlets of cannabis and other flora while offering full spectrum DNA testing
for plant identification, live genetics preservation using low temperature
storage for various cannabis and horticulture plants; extraction of botanical
oils mainly CBD oil, and to deliver laboratory based services to the North
American Cannabis and agriculture sectors.  For further information on the
company progress on the construction of a 63,000 square foot “Cannabis Biotech
Complex” please visit www.pharmagreen.ca

Safe
Harbor Statement

This press release contains forward-looking
statements. Such forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause the Company’s actual results to
differ materially from those projected in such forward-looking statements. In
particular, factors that could cause actual results to differ materially from
those in forward-looking statements include: our inability to obtain additional
financing on acceptable terms; risk that our products and services will not
gain widespread market acceptance; inability to compete with others who provide
comparable products; the failure of our technology; the infringement of our
technology with proprietary rights of third parties; inability to respond to
consumer demands; inability to replace significant customers; seasonal nature
of our business. Forward-looking statements speak only as of the date made and
are not guarantees of future performance. We undertake no obligation to
publicly update or revise any forward-looking statements. When used in this
document, the words “believe,” “expect,”
“anticipate,” “estimate,” “project,”
“plan,” “should,” “intend,” “may,”
“will,” “would,” “potential,” and similar
expressions may be used to identify forward-looking statements. 

The OTC Markets or any other securities
regulatory authority has not reviewed and does not accept responsibility for
the adequacy or accuracy of this press release that has been prepared by
management. 

Contact
Information:

www.pharmagreen.ca

Tel: (702) 803 9404

Email: info@pharmagreen.ca

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