Highlights

• Three Dr Watson cannabis flower SKUs covered by the expanded agreement, for Supply into Costa Rica.
• Initial shipment value: greater than A$500,000 (invoice value, not necessarily Gross Profit).
• Timing: initial shipment expected prior to 30 June 2026.
• Counterparty: Remidose LATAM SRL, a Costa Rica–based pharmaceutical distributor.
• Existing relationship: original supply agreement announced 11 December 2025, originally covering pastilles for Costa Rica and Panama.
• Future scope: continued supply of pastilles into Costa Rica and Panama; opportunity to expand further across LATAM via Remidose’s regional network.
• Operating Subsidiary: Breathe Life Sciences (BLS), wholly owned by BXN, GMP-licensed manufacturer of S3/S4/S8/S9 controlled substances including medicinal cannabis, psilocybin and MDMA.
• No minimum purchase commitment, Recurring Revenue floor, gross Margin disclosure or formal Earnings guidance has been provided in this announcement.

Bioxyne Limited (ASX:BXN) has executed an expanded supply agreement with Remidose LATAM SRL, a Costa Rican pharmaceutical distributor focused on medicinal cannabis distribution into Costa Rica, Panama and other LATAM markets. The expansion specifically adds the supply of three Dr Watson® cannabis flower SKUs into Costa Rica, in addition to the cannabis pastilles already contemplated under the original December 2025 agreement. Bioxyne emphasises that this is the first international supply of medicinal cannabis flower into Costa Rica’s regulated medicinal cannabis market.

Product registration in Costa Rica is described as well advanced. Initial shipments of Dr Watson® cannabis flower are expected before the end of the current Australian financial year, on or before 30 June 2026, with the invoice value of the first shipment stated to exceed A$500,000. Manufacturing and export will run through Breathe Life Sciences, Bioxyne’s wholly owned GMP-licensed subsidiary, which manufactures and distributes controlled substances under Australian and international frameworks. The relationship with Remidose remains structured to expand over time, with the announcement explicitly contemplating future supply of pastilles into both Costa Rica and Panama.

Chief Executive Officer Sam Watson described the development as illustrative of how quickly opportunities can evolve once a market presence has been established, characterising Costa Rica as the beginning of a broader LATAM strategy. Remidose Managing Director Michael Mayne is quoted noting that early Demand has been “exceptionally strong” and that initial stock may be committed prior to arrival in country. Investors should note these are management characterisations rather than externally verified demand metrics.

Why the announcement matters

From a commercial perspective, the announcement is meaningful for three reasons. First, it converts an existing distribution relationship into a tangible near-term revenue event by attaching a stated invoice value of greater than A$500,000 to a defined first shipment. Second, it claims first-mover positioning in a regulated medicinal cannabis market that, while small today, may grow as regulatory frameworks mature. Third, it broadens the product mix flowing through the Dr Watson® Brand into LATAM beyond pastilles and into flower, a category that typically commands higher unit volumes in established medicinal cannabis markets.

At a corporate level, the development further externalises Bioxyne’s manufacturing platform. Most early-stage medicinal cannabis companies either focus on a single domestic market or rely on third-party manufacture for exports. Bioxyne has positioned BLS as a multi-jurisdictional GMP-licensed manufacturer, with operations in Australia, Japan, the UK and Czechia. Successful execution into Costa Rica adds another reference customer and another regulated Jurisdiction, which can be useful both for further commercial wins and for regulatory dialogue in other LATAM countries. Investors interested in scalable, branded medicinal cannabis platforms may view the announcement as further evidence that Bioxyne is building a distributor-led international channel rather than a purely domestic patient base.

Strategic context

Bioxyne’s stated strategy is to scale its GMP-certified manufacturing and supply platform across regulated international markets, with Europe and LATAM identified as the two key growth regions. The Company’s domestic Australian Business is anchored by BLS’s licensed manufacturing capability, while internationally it leverages the Dr Watson® brand across cannabis-based food supplements, lifestyle products, functional mushrooms, nootropics and prescription-only medicines (with the brand owned in the UK, Japan, Australia and New Zealand). The expansion into Costa Rica is consistent with that strategy, and follows the December 2025 first-mover announcement covering pastilles in Costa Rica and Panama.

LATAM medicinal cannabis remains a structurally early-stage market. Many countries are in the process of bedding down product registration pathways, prescriber networks, pharmacy distribution arrangements and reimbursement frameworks. Bioxyne’s decision to enter Costa Rica through Remidose, rather than a direct distribution model, is consistent with how small Australian medicinal cannabis exporters typically navigate complex foreign regulatory regimes — pairing an Australian GMP-certified supplier with a locally licensed importer/distributor. The strategic question for investors is whether early supply contracts of this kind translate into a meaningful recurring revenue base over multiple periods, and whether Bioxyne’s positioning ahead of larger competitors continues to convert into share once those competitors complete their own regulatory pathways.

It is also worth noting that the Parent Company has positioned BLS more broadly as a manufacturer of controlled substances including psychedelic compounds (psilocybin and MDMA) for therapeutic use. That broader platform is not the subject of this specific announcement, but it provides important context: the Costa Rica supply agreement is one of several international commercial events that could roll through over the medium term as BLS commercialises its manufacturing footprint.

Market interpretation

A positive reading of the announcement would emphasise the speed at which the original Remidose agreement has been expanded — from pastilles only in December 2025 to flower SKUs by May 2026 — and the implication that early demand signals have been sufficient to support an enlarged product scope. The first-mover positioning in Costa Rica, the more than A$500,000 invoice value attached to the first shipment, and the LATAM-wide distribution network are all genuine positives for shareholders looking for evidence of commercial traction beyond Australia.

A neutral reading would treat the announcement as a continuation of a previously disclosed strategy. The original December 2025 agreement already established Remidose as the LATAM distribution partner; the May 2026 announcement extends scope rather than introducing a new counterparty or jurisdiction. Costa Rica is a relatively small market in population terms (approximately 5 million people), and a single A$500,000+ shipment, even if repeated several times per year, may not move group revenue dramatically without further country additions. Until a recurring run-rate is disclosed, investors may reasonably wait for the second and third orders to materialise.

A more cautious reading would focus on the absence of binding minimum volumes, the lack of disclosure on contract gross margin, the dependence on Remidose’s sell-through to Costa Rican pharmacies and clinicians, and the typical execution risks associated with first-of-kind international shipments. Statements by both companies about “exceptionally strong” early demand are not externally verified and should be weighed against the announcement’s own caveats that repeat orders are subject to “market conditions and regulatory approvals.” Investors should also recognise that the Costa Rican regulatory environment for medicinal cannabis remains relatively young, which creates the dual reality of less competition and less established demand visibility.

Risks, caveats, and missing information

Regulatory Risk is the most obvious caveat. Although Bioxyne states that product registration in Costa Rica is well advanced, registration is not the same as a final, unconditional market authorisation; investors do not have a stated date for full approval, or detailed visibility on conditions attached to the registration. The supply also depends on continued export licensing through Australian and international pathways, which BLS appears well placed to maintain but cannot be assumed.

Commercial risk includes counterparty concentration with Remidose, the absence of a disclosed minimum purchase obligation, and the dependence on Remidose’s Downstream distribution network to convert imported flower into actual sales. If sell-through is slower than indicated by either party’s commentary, the cadence and size of repeat orders will be lower than implied. Logistics and supply chain risks are typical for controlled substances exports — including delays at customs, regulatory holds, and the cost of cold-chain or compliant transport of pharmaceutical-grade cannabis flower.

Financial disclosure is limited. The announcement does not disclose contract gross margin on the flower SKUs, the unit pricing structure, payment terms, FX exposure, or the impact on full-year revenue. The announcement also does not state whether the agreement is price-sensitive. Investors should not infer a price-sensitive classification one way or the other from the absence of an explicit statement.

Other missing information includes: the term and renewal mechanics of the expanded agreement; whether either party can terminate for convenience; exclusivity provisions in Costa Rica or Panama; product warranty and recall responsibilities; insurance arrangements; and any information on the competitive set in Costa Rica (for example, whether any domestic Costa Rican producers are at scale). Commodity-style price risk is more limited for medicinal cannabis than for, say, gold or oil, but pricing pressure can intensify as additional international suppliers obtain product registration in Costa Rica.

Finally, the broader Bioxyne corporate story includes ambitions in psychedelic medicines, contract manufacturing in the UK, EU and Japan, and continued Investment in the Dr Watson® brand. The Costa Rica agreement is positive but discrete; it does not, on its own, materially de-risk the wider corporate strategy or the Company’s funding profile, neither of which is addressed in this specific announcement.

Investor takeaway

This is a tangible operational milestone in a small but genuinely early-stage LATAM medicinal cannabis market. Bioxyne has converted a previously announced LATAM Partnership into a defined near-term revenue event, with a stated invoice value of more than A$500,000 attached to a first shipment scheduled before 30 June 2026, and three Dr Watson® flower SKUs added to the product scope. For shareholders, the most useful framing is to treat the announcement as confirmation that the December 2025 Remidose relationship is progressing into actual deliveries, rather than as a transformative re-rating event in its own right.

The key metrics to watch from here are the timing of the first shipment relative to the 30 June 2026 target, the cadence and size of repeat orders, the formal Costa Rican market authorisation, the activation of pastille supply into both Costa Rica and Panama, and any further LATAM jurisdiction announcements that Leverage the same Remidose distribution network. Disclosure on contract gross margin, full-year revenue contribution from international markets, and any binding Volume commitments would materially improve investors’ ability to assess the financial significance of the Costa Rica platform over time.

This report is provided for information only and does not constitute financial product advice or a recommendation to buy, sell or hold securities. Investors should consider their own circumstances and obtain professional advice before making investment decisions.