McPherson's Limited announced it has entered into a series of formal agreements with relevant members of Chemist Warehouse Group ("CWG") to establish a unique strategic alliance ("Strategic Alliance") with CWG, structured to deliver material commercial and operational benefits to McPherson's. In summary, under these agreements: McPherson's will be appointed as Chemist Warehouse's exclusive long-term distributor of a select portfolio of Chemist Warehouse-owned or controlled health and beauty brands outside of the Chemist Warehouse Network in Australia and New Zealand ("Exclusive Distribution Agreement"). The range, which includes Wagner Vitamins, Wagner Body Science, Bondi Protein, Foster Grant, INC and Microgenics, and will be made available to all customers within the McPherson's distribution network. Chemist Warehouse will, by way of initial engagement and training, and by making relevant knowhow, IP and other deliverables available to MCP, support the effective sale and distribution of the CWG brands under the Exclusive Distribution Agreement.

The exclusive distribution rights will be for an initial term of five-years commencing on 1 July 2022. McPherson's will have three five-year options to extend the arrangements, subject to certain minimum performance thresholds on a brand-by- brand basis which McPherson's considers it is well placed to meet; Chemist Warehouse will increase the portfolio of McPherson's brands which CWG currently ranges in Australia and New Zealand, to include Moosehead, Maseur, Fusion Health, Stratton, Sugar Baby and Happy Flora. Chemist Warehouse will also recognise McPherson's as a preferred supplier of CWG, allowing MCP to enjoy the benefits of that status ("Preferred Brand Agreement").

The Preferred Brand Agreement will have an initial term of five-years commencing 1 July 2022. Chemist Warehouse will have three five-year options to extend the arrangements; and As part of the Strategic Alliance Chemist Warehouse will be issued approximately 14.1 million McPherson's shares on 1 July 2022, thereby becoming a substantial shareholder, with a holding of 9.9% of McPherson's shares on a fully diluted basis. The shares will be issued at a value of $0.88 each, based on the 5-day VWAP of MCP's securities on the ASX up to 22 March 2022.