HYTN Innovations Inc. (CSE: HYTN | FSE: 85W0) "HYTN" or "The
Company", a leader in the development, formulation, and
manufacturing of psychoactive and psychotropic compounds, including
cannabis and psilocybin, is pleased to announce, further to its
news release dated June 13, 2024, the completion of its acquisition
(“
Acquisition”) of all of the issued and
outstanding share capital of Prism Scientific Labs Inc. (Prism), a
company focussed on the research and development of psychedelic and
psychoactive compounds, with a particular emphasis on enhancing
tryptamine yields in psychedelic mushrooms. This strategic
acquisition grants HYTN exclusive access to Prism’s suite of
intellectual property, including, most significantly, its license
(“
License”) with respect to the technologies of
Lux Sit Systems Inc. (Lux Sit) relating to the cultivation of
psilocybin-containing mushrooms (“
Licensed IP”).
These technologies include specialized equipment designed to
increase both the total yield and the tryptamine profile of
mushrooms by enabling the production of larger and more potent
biomass for psychedelic drug manufacturing. This License is for a
term expiring on June 4, 2029, with the license agreement between
Prism and Lux Sit having been entered into on June 4, 2024
(“
License Agreement”). The Company notes that
Prism secured the License in exchange for the issuance to Lux Sit
of 100,000 Prism shares, and the payment of $35,000, as well as a
covenant to issue an additional 100,000 Prism shares and $30,000 in
cash upon the first anniversary of the License Agreement.
The Licensed IP, which represents Prism’s
material asset, is currently undergoing patent review, and is
actively being deployed in connection with the cultivation of
psilocybin-containing mushrooms at the Company’s Kelowna
facility.
In consideration for the Acquisition, HYTN has
issued to the former shareholders of Prism, all of whom are at
arm’s length to HYTN, an aggregate of 12,100,100 common shares
(“Consideration Shares”). The Consideration Shares
have a deemed acquisition price of $0.195 and are subject to a hold
period of four months.
The Company believes that the integration of
Prism’s business will further its efforts to develop drugs
containing psychoactive compounds for clinical applications. This
acquisition marks a significant step forward in HYTN’s mission to
be the top provider of these products in all federally regulated
markets and follows the Company’s news release dated June 27, 2024,
which announced that the Company had received Good Manufacturing
Practices (GMP) certification for non-sterile pharmaceutical
manufacturing of drugs containing psilocybin.
Tyler Lewis, Director of Prism, was enthusiastic
about the development saying, “We are thrilled to roll Prism into
HYTN, finding a partner that can take our licenses and technologies
and start to develop them in real world applications to create a
better performing drug will provide tremendous upside.”
Elliot McKerr, Chief Executive Officer, HYTN
Innovations Inc., said, “We are excited to welcome Prism into the
HYTN family. This acquisition represents a key pillar in HYTN's
long term strategic growth plan, allowing us to leverage Prism's
exclusive licenses to enhance our research and development
capabilities. By combining Prism's intellectual property with our
established operations, we are poised to drive innovation in the
psychoactive and psychedelic compounds market. This collaboration
not only aims to expand our future product offerings but also
solidifies our position as a leader in the industry. We look
forward to the exciting advancements and opportunities this
acquisition will bring to HYTN and our stakeholders.”
The Company notes that it anticipates adding key
members of Prism’s founding team as strategic advisors to the
Company.
The Company also notes that, as required under
applicable securities law, it will file a Business Acquisition
Report (BAR) in respect of the acquisition of Prism within the
prescribed time, and will issue a news release upon the filing of
the BAR.
About HYTN Innovations Inc.
HYTN formulates, manufactures, markets, and
sells premium products containing psychoactive and psychotropic
compounds, including cannabis-derived cannabinoids. HYTN's mission
is to become the top provider of these products in all federally
regulated markets. To achieve this, the Company focuses on
identifying market opportunities and quickly bringing its
innovative products to market through its elevated development
platform.
About Good Manufacturing Practices (GMP)
Good Manufacturing Practice (GMP) guidelines are
pivotal in enhancing product quality by establishing rigorous
standards for manufacturing, testing, and quality assurance. These
guidelines are instrumental in managing and mitigating risks,
thereby ensuring products are consistently produced and controlled
according to quality standards. By prioritizing safety, GMP helps
ensure that products do not pose unacceptable risks to consumers.
Adherence to GMP is mandated in many countries, aligning with
national regulations to uphold global quality standards and
facilitate international commerce in regulated products.
For more information contact:
Elliot McKerrChief Executive Officer1.866.590.9289
HYTN Investor Relations:1.866.590.9289investments@hytn.life
The Canadian Securities Exchange (CSE) has not
reviewed, approved, or disapproved the contents of this press
release.
Certain information contained herein may
constitute forward-looking statements that involve risks and
uncertainties. Readers are cautioned not to place undue reliance on
forward-looking statements, including, but not limited to,
statements regarding: (i) the ability of the Company to integrate
Prism’s intellectual property and expertise into HYTN's existing
operations; (ii) the ability of the Company to develop and
commercialize psychoactive compounds and technologies; (iii) the
ability of the Company to enhance its research and development
capabilities; (iv) the potential for market expansion and increased
competitive advantage resulting from the Acquisition; and (v) the
ability to leverage Prism's exclusive licenses and patented
technologies for future product development. Factors that could
cause actual results to vary from forward-looking statements or may
affect the operations, performance, development, and results of the
Company’s business include, among other things: the Company's
failure to generate sufficient cash flow from operations to meet
its current and future obligations; the Company's failure to access
sources of debt and equity capital; changes to the regulatory
framework within which the Company operates; competitive factors,
pricing pressures, and supply and demand in the Company’s industry;
and general economic and business conditions. Any statements that
are not statements of historical fact are deemed to be
forward-looking statements. The forward-looking statements
contained in this news release are made as of the date of this news
release, and, except to the extent required by applicable law, the
Company assumes no obligation to update or revise forward-looking
statements made herein or otherwise, whether because of new
information, future events, or otherwise. The forward-looking
statements contained in this news release are expressly qualified
by this cautionary note.
The Canadian Securities Exchange (CSE) has not reviewed,
approved, or disapproved the contents of this press release.