Mr. Eric Boehnke reports

TRENCHANT PROVIDES UPDATE ON CORPORATE DEVELOPMENTS OF AND INVESTMENT IN GNQ INSILICO INC.

Trenchant Capital Corp. investee GNQ Insilico Inc. has commenced the development of an in silico clinical trial platform with a technology-based Fortune 100 company. On Nov. 6, 2023, GNQ signed a memorandum of understanding with the Fortune 100 company to develop and commercialize an artificial-intelligence-driven drug development platform that integrates GNQ's genomics and epigenetic analytics, generated over 10 years through data from 15,000 case studies.

"Our collaboration with a Fortune 100 technology company and its leadership in AI and quantum computing will empower GNQ Insilico to further advance its genomics-driven generative AI in silico clinical trials platform. Given the current challenges facing life sciences companies in cost-effective and timely drug development, we believe that our platform can be a game changer in helping these companies more rapidly bring their drugs to market," states Rehan Huda, founder and chief executive officer of GNQ.

GNQ was formed in August, 2023, by My Next Health Inc. (MNH), a Delaware incorporated health care company with a vision to improve the global health care sector by deploying a genomics-based AI and quantum platform for clinical trials and point-of-care solutions. MNH's platform uses proprietary insights on how systems of genes interact with each other as well as with epigenetic factors to drive key metabolic pathways. These insights are based on more than 15,000 case studies conducted over a decade and are now being scaled and commercialized through a platform that will leverage key exponential technologies to revolutionize personalized healthcare. It is GNQ's belief that the successful deployment of its genomics-driven generative AI in silico clinical trials platform powered by quantum computing has the potential to provide the following benefits to drug development:

Rapid drug development: In silico clinical trials enable GNQ to expedite the drug development process by simulating and predicting drug responses, significantly reducing the time required for clinical trials and the overall cost of the trials.

Improved safety and efficacy: In silico clinical trials enhance GNQ's understanding of drug mechanisms, allowing for the prediction of adverse effects and optimization of drug dosages, thereby increasing safety and efficacy.

Personalized medicine: GNQ's generative AI platform simulates the effects of drugs across diverse profiles of human digital twins (digital replicas of real people), enabling the development of targeted therapies and facilitating personalized medicine across disparate and diverse populations.

Equitable representation: GNQ's drug simulation process is inherently designed to include genetic, epigenetic and lifestyle variances based on ethnic and minority populations, thereby ensuring equitable representation of underserved minorities in the drug development process.

MNH has exclusive and perpetual global rights to the use of certain technology that relates to functional genomics as well as the supporting clinical data, programs, methods, and interpretation know-how and analytics for use in a number of commercial applications.

Option agreement

The company entered into an option agreement with GNQ, dated Nov. 30, 2023, as amended, pursuant to which GNQ granted the company the right and option to purchase up to 50 per cent of the common shares in the capital of GNQ during the period commencing on Nov. 30, 2023, and ending on the earlier of Nov. 30, 2026, or the date of a specified liquidity event involving GNQ (as set out in the option agreement). Pursuant to the option agreement, the company agreed to acquire an initial 20 per cent of the postinvestment fully diluted GNQ shares for consideration consisting of $2.5-million and the issuance of 7.5 million common shares in the capital of the company to GNQ. To date, the company has invested $700,000 of the initial investment in exchange for 59,322 GNQ shares, being 5.6 per cent of total issued and outstanding GNQ shares on a fully diluted basis.

Effective March 5, 2024, the company has agreed with GNQ that, on or prior to March 15, 2024, the company will make a $500,000 cash payment in exchange for 52,966 GNQ shares and that, on or prior to April 12, 2024, the company will make a $1.3-million cash payment and issue 7.5 million Trenchant shares in exchange for such number of GNQ shares which would result in the company owning an aggregate of 20 per cent of the total issued and outstanding GNQ shares on a fully diluted basis, when combined with the GNQ shares previously held by the company, as at the date of the completion of the issuance of the GNQ shares.

We seek Safe Harbor.