Mr. Paul Larkin reports

GSTAAD CAPITAL PROVIDES UPDATE ON QUALIFYING TRANSACTION.

Gstaad Capital Corp. has provided an update on the qualifying transaction with LuxHygenix Inc. announced Dec. 15, 2021.

LuxHygenix Inc. was unable to complete the recent equity private placement and thus has had to suspend development operations at its lab in Scottsdale, Ariz., due to lack of capital.

LuxHygenix Inc. had a monthly burn rate of in excess of $180,000 (U.S.), primarily spent on advancing the product design and prototypes but suffered significant supply chain delays in developing prototypes for delivery to its contracted partners; the Mayo Clinic, Johns Hopkins Hospital and Arizona State University. The development of a unique solid-state component prototype, which enabled operation in the Goldilocks Band at high and controlled levels, was accomplished and inhouse testing verified the effectiveness of the scientific advances of the team in the lab.

As part of the qualifying transaction process, audited financials were prepared for two years of LuxHygenix financial years ended Dec. 31, 2021, and Dec. 31, 2022, in compliance with regulatory requirements, and no audit issues were identified in the audit.

Management of LuxHygenix is reviewing alternative sources of financing but in the interim has determined that it is prudent to suspend operations to reduce continuing costs at the present.

Gstaad management is closely following LuxHygenix Inc. and will provide an update when available. Gstaad has suspended advancing the qualifying transaction with LuxHygenix and will provide updates of any progress by news release.