VANCOUVER, British Columbia, April 23, 2026 (GLOBE NEWSWIRE) -- HYTN Innovations Inc. (CSE: HYTN) (OTC Pink: HYTNF) (FSE: 85W0) ("HYTN" or the "Company") announces that its Board of Directors has approved the spin-out of an internally developed peptide drug development business into a dedicated new company ("SpinCo"). As part of the proposed spin-out, SpinCo is expected to complete a concurrent financing to fund the next phase of its development and to pursue a public listing on the Canadian Securities Exchange (the "CSE"), subject to regulatory approvals and market conditions.

The proposed spin-out is intended to separate from HYTN a peptide-focused drug development business centered on the pre-clinical development of a subcutaneous injectable BPC-157 drug candidate for refractory ligament disorders. HYTN has built this business internally and has assembled the manufacturing, operating, regulatory and quality framework required to advance the program into the next stage of clinical development.

The business proposed to be transferred to SpinCo includes the assets, Good Manufacturing Practices ("GMP") operating systems, regulatory framework and related know-how comprising HYTN’s peptide drug development business, together with the documentation, clinical-support processes and infrastructure required to advance the program.

HYTN has selected a Canadian GMP-certified sterile pharmaceutical contract manufacturing organization for the initial manufacture of sterile BPC-157 drug product and has selected an approved medical device platform intended to support dose-controlled subcutaneous administration. HYTN has also established the framework required to support advancement through both Clinical Trial Application ("CTA") and Special Access Program ("SAP") pathways and has been structuring the program in accordance with Health Canada, the European Medicines Agency and the U.S. Food and Drug Administration principles to support future regulatory optionality.

HYTN has developed the pharmaceutical-grade infrastructure required to manage the program in full compliance with GMP standards. This includes systems for manufacturing control, packaging and labelling, batch release, warehousing, controlled distribution, traceability, documentation and quality oversight. In addition, the Company is advancing specialized clinic-facing support systems, including logistics, documentation assistance and case coordination, to reduce the administrative burden on physicians participating in Health Canada’s Special Access Program (SAP) relating to peptide dispensation, while preserving future supply chain flexibility through additional GMP activities.

The proposed spin-out reflects HYTN’s view that the peptide drug development business is best advanced in a dedicated vehicle with its own capital base, management focus and development mandate. Although the program has been developed within HYTN and has benefited from the Company’s regulatory, quality and operating infrastructure, it is distinct from the core business priorities which HYTN intends to focus on. The proposed spin-out is intended to support focused execution while preserving for HYTN shareholders the value created through HYTN’s incubation of the business.

Asset Transfer and Consideration

Subject to final structuring, HYTN shareholders are expected to receive shares of SpinCo as part of the proposed spin-out. HYTN may also receive additional SpinCo shares as partial consideration, with the final form and amount of consideration to be determined under definitive transaction documents.

Concurrent Financing

Concurrently with completion of the proposed spin-out, SpinCo intends to complete a non-brokered private placement of up to CAD $1,000,000 through the issuance of units (the "Units"). Each Unit is expected to consist of one common share, with final terms to be determined.

The net proceeds from the financing are expected to be used for advancement of SAP and CTA activities, manufacturing, regulatory and operational workstreams, expansion of patient data collection and supporting infrastructure, funding a portion of the consideration payable to HYTN, and general working capital and corporate purposes.

Management and Governance

Upon completion of the proposed spin-out, SpinCo is expected to have a dedicated management team and board appropriate for a pre-clinical drug development business. As currently contemplated Fabian Monaco, HYTN Board Member, is expected to serve as CEO, Jason Broome, HYTN COO is expected to serve as Chief Science Officer, and the initial board of SpinCo is expected to include Elliot McKerr, HYTN CEO, with any additional appointments to be disclosed once finalized.

The Company has not completed the proposed spin-out or financing, and no assurance can be given that either transaction will proceed on the terms currently contemplated, or at all. Completion of the proposed spin-out is expected to be subject to customary conditions, including board approval, definitive documentation, court approval if required, securities law compliance, Canadian Securities Exchange review where applicable, and such other approvals as may be necessary in the circumstances.

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 McKerr
Chief Executive Officer
HYTN Innovations Inc.

HYTN Investor Relations:
1.866.590.9289
investments@hytn.life

The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information relates to future events or future performance and is generally identifiable by the use of words such as “expect,” “intend,” “may,” “will,” “anticipate,” “believe,” “could,” “propose,” “plan,” and similar expressions, or by statements regarding matters that are not historical facts.

Such statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events and operating conditions.

This press release contains forward-looking information relating to, among other things: the completion, structure, timing and terms of the proposed spin-out of the Company’s peptide drug development business into SpinCo; the transfer of assets, operating systems, regulatory framework, documentation, infrastructure and related know-how to SpinCo; the anticipated receipt by HYTN shareholders of shares of SpinCo and any additional consideration to be received by HYTN; the completion, size, terms and use of proceeds of the proposed concurrent financing; SpinCo’s intention to pursue a public listing on the Canadian Securities Exchange; the anticipated use of the proceeds of the financing; the expected timeline for completion of the proposed transactions; the anticipated management team and board composition of SpinCo; the advancement of the BPC-157 program, including through SAP and CTA pathways; the involvement of third-party manufacturers and device platforms; the development of clinic-facing logistics, documentation and case coordination systems; and the Company’s expectation that the peptide drug development business is best advanced through a dedicated vehicle with its own capital base, management focus and development mandate.

Forward-looking information is based on certain assumptions, including, but not limited to: the assumption that the parties will be able to negotiate and enter into definitive transaction documents on acceptable terms; that all required board, shareholder, court, securities law, stock exchange and regulatory approvals, if required, will be obtained in a timely manner or at all; that the proposed asset transfer, shareholder distribution, financing and listing will proceed substantially as currently contemplated; that SpinCo will be able to secure sufficient funding for the next phase of development; that appropriate management, board and service-provider arrangements will be finalized; that the selected manufacturing and device platform arrangements will remain available on acceptable terms; that applicable regulatory pathways, including SAP and CTA pathways, will remain available and capable of supporting the contemplated development strategy; and that the Company and SpinCo will have sufficient resources to execute the proposed transactions and associated workstreams. These assumptions are based on information currently available to the Company.

Although management believes such assumptions to be reasonable, there can be no assurance that they will prove to be correct.

Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, events, or outcomes to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, without limitation: the risk that the proposed spin-out, financing or listing may be delayed or may not be completed on the terms currently contemplated, or at all; the risk that definitive documentation is not completed; the risk that required approvals are not obtained; the risk that the proposed shareholder distribution or other consideration structure is modified; the risk that SpinCo does not complete the financing or does not obtain sufficient capital; the risk that anticipated management or board appointments do not proceed as expected; risks associated with early-stage and pre-clinical drug development; risks relating to the regulatory treatment, development pathway, manufacture, import, export, distribution or clinical advancement of peptide-based products; risks relating to SAP and CTA processes; risks relating to reliance on third-party manufacturers, suppliers and service providers; intellectual property risks; operational risks; market and commercialization risks; and financing, capitalization and liquidity risks.

The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information.