Mr. Elliot McKerr reports

HYTN ANNOUNCES ARRANGEMENT AGREEMENT TO FACILITATE THE SPIN-OUT OF A PEPTIDE-FOCUSED DRUG DEVELOPMENT BUSINESS

HYTN Innovations Inc. has entered into an arrangement agreement with Peptide Development Labs Inc. (PDL) dated Sept. 1, 2026, pursuant to which HYTN will separate its peptide-focused drug development business centered on the preclinical development of a subcutaneous injectable BPC-157 drug candidate for refractory ligament disorders into PDL. HYTN's board of directors formed a special committee, which recommended approving the arrangement and the board in turn unanimously approved the arrangement and arrangement agreement. Shareholders of HYTN will receive common shares in PDL in proportion to their shareholdings in HYTN. HYTN currently holds approximately 17 per cent of PDL and, after PDL completes a concurrent financing, the shareholders are expected to own approximately 14 per cent of PDL.

It is intended that, as part of the arrangement, the shareholders will receive PDL common shares by way of a share exchange, pursuant to which each existing share of HYTN is exchanged for one new share of HYTN and 0.0555555555555556 of a PDL common share. No other HYTN securityholders will participate in the arrangement. The arrangement will be effected by way of a plan of arrangement under the Business Corporations Act (British Columbia) and must be approved by the Supreme Court of British Columbia and by the affirmative vote of 66.66 per cent of the shareholders. A meeting of shareholders to approve, among other things, the arrangement, is expected to occur in October, 2026.

Once the arrangement becomes effective, the result will be two separate and focused, well-capitalized entities, each with a high-quality advanced project providing new and existing shareholders with optionality as to investment strategy and risk profile.

HYTN is undertaking the arrangement in order to focus on providing good manufacturing practices (GMP) manufacturing and processing services for cannabis products intended for regulated international medical markets. The arrangement is also intended to maximize shareholder value by allowing the market to value HYTN's assets independently of the peptide drug development business. The business proposed to be transferred to PDL includes the assets, 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.

PDL will initially be managed by Fabian Monaco, as chief executive officer, Jason Broome, as chief science officer, and Tasheel Jeerh, as chief financial officer. Its board will consist of Fabian Monaco, Jason Broome, Elliot McKerr, who are also directors or officers of HYTN, as well as Dr. Gerry Ramodiga, a director who is independent of HYTN.

Additional details of the spinout transaction will be included in an information circular to be mailed to shareholders in September, 2026, in connection with the meeting. Subject to receipt of all required shareholder, court and regulatory approvals, the arrangement is expected to close in the fourth quarter of 2026.

About HYTN Innovations Inc.

HYTN Innovations is a pharmaceutical company specializing in the formulation, manufacturing, marketing, and sale of products containing psychoactive and psychotropic compounds, including cannabis-derived cannabinoids. The company serves federally regulated markets worldwide by applying pharmaceutical-grade development, manufacturing and quality systems.

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