Beeio Honey Ltd.

Regulatory Filings • Aug 17, 2021

This is an English translation of a Hebrew immediate report that was published on August 12, 2021 (reference no: 2021-01-064468) (hereafter: the "Hebrew Version"). This English version is only for convenience purposes. This is not an official translation and has no binding force. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

BEEIO HONEY LTD

(the "Company")

August 16 th , 2021

To: To: www.isa.gov.il www.tase.co.il

Israel Securities Authority ("ISA") Tel Aviv Stock Exchange Ltd. ("TASE")

Dear Sir and Madam,

Re: Company has Established a New Research to Produce Cultivated Honey of Stingless Honey Bees

The Company is honored to announce to its shareholders that it has established a new research channel to create cultivated honey of stingless honey bees, in addition to the Company's existing developments and research channels that focus on creating cultivated honey similar in its composition to the common honey created by the honey bee (Apis).

Honey of stingless honey bees honey is expensive and contains rare sugar that cannot be found as main ingredient in any other food. Honey of stingless honey bees has low glycemic value compared to the common honey and is considered healthier. The glycemic index ranks food based on its impact on human blood sugar levels. Foods that breaks down rapidly and sharply elevate the sugar levels in the blood receives a high value, while food that breaks down slowly and elevate blood sugar levels moderately receives a low value. The glycemic index assists in maintaining proper and balanced nutrition and has special significance for people with diabetes who must maintain constant sugar levels in their blood and to avoid sharp spikes.

In order to establish the aforementioned research channel, the Company has started an in-depth study of the honey production process of stingless honey bees, as it occurs in the wild. The Company will examine the honey production process starting from the production process of the unique nectar used for this kind of honey, to the main enzyme composition in the honey stomach of stingless bees. The Company is working diligently to develop an artificial honey stomach that will mimic the activity of the stingless honey bees' stomach, which is essential for the production of cultivated honey of stingless bees in industrial scales.

Background

Stingless honey bees (Meliponini) are relatives of the Honey Bee (belonging to the same sub-species, Apidae). These bees are social and produce honey but their sting is inactive, so they are referred to as "stingless honey bees". There are approximately 550 species of such bees and while most of them are small with a length of a few millimeters, few are close in size to the honey bee (Apis). Stingless honey bees usually reside in tropical and sub-tropical areas around the world (Australia, Africa, Latin America) and the honey they produce is referred to by different names such as Meliponine Honey, Sugarbag Honey (Australia) and Kelulut Honey (Malesia). The honey production capacity of stingless bees is significantly lower (approximately 1 kg. annually) than of the honey bees (approximately 35 kg. annually) thus making the stingless bees' honey more expensive.

In 2020, researchers from Queensland University discovered that honey produced by certain stingless bees contains Trehalulose (in concentration of up to 44%), which has low glycemic value compared to glucose and fructose found in the common honey¹ . The conclusion of the abovesaid discovery is that stingless bee's honey has significant health benefits. According to the discovery, the consumption of stingless bee's honey elevates blood sugar levels moderately which prevents fatigue and hunger sensation and improves the ability to maintain healthy and balanced nutrition. Another benefit is that consumption of stingless bee's honey has low risk of creating tooth decay (also known as dental caries) in comparison to the consumption of common honey. University findings support that Australian natives longstanding claims that their local honey from stingless bees is beneficial to human health²³ .

The Purpose of the Research

At this point, one of Company's research purposes is to produce an increased quantity of the unique nectar collected by stingless bees and to express the main enzymes involved in the production of honey in the stingless honey bee's stomach in microorganism. The completion of the aforementioned purpose is required in order to produce crucial components from such unique nectar, without relying on stingless honey bees, while controlling the quantity of the honey, the composition of the honey components and the relation between them until the production of cultivated honey of stingless honey bees that is similar in its composition to the pure honey of the stingless bees on a microscopical comparison.

Importance of the Research

It is the Company's assessment that the production of cultivated honey of stingless honey bees might constitute a significant breakthrough because as mentioned above, honey of stingless bees is rich with Trehalulose, which is a nutrient with significant health value.

The Company estimates that in case of a successful completion of research and development as

¹ Fletcher, , Mary T.; Hungerford, Natasha L.; Webber, Dennis; Carpinelli de Jesus, Matheus; Zhang, Jiali; Stone, Isobella S. J. Blanchfield, Joanne T.; Zawawi, Norhasnida (2020-07-22). "Stingless bee honey, a novel source of trehalulose: a biologically active disaccharide with health benefits". Scientific Reports. 10 (1): 12128.

² Layt, Stuart (2020-07-23). "Scientists say native stingless bee honey hits the sweet spot". Brisbane Times.

³ Ives, James (2020-07-23) ״Science identifies rare, healthy sugar in native stingless bee honey ״ News Medical Life Science

described above, some of the findings and/or processes and/or research methods developed might constitute a basis for additional intellectual property. It is in the Company's belief that the production of cultivated honey of stingless honey bees has great economic potential given its unique health and nutrition properties.

The information mentioned in this message is a "Forward Looking Information" as defined in The Securities Law, 5728-1968, based on the information known to the Company as of this date, and on estimates and predictions which their realization depends, among others, on factors that are outside of the Company's control. To be noted, the Company is a research and development company and as such, its estimations might be realized in a different manner, if at all, given that the Company's research is preliminary and precedential.

Sincerely,

OFIR DVASH, CEO BEEIO HONEY LTD