VANCOUVER, British Columbia, Sept. 02, 2026 (GLOBE NEWSWIRE) -- HYTN Innovations Inc. (CSE: HYTN, FSE: 85W0, OTC Pink: HYTNF) (“HYTN” or the “Company”), a pharmaceutical manufacturer specializing in products containing psychoactive and psychotropic compounds, announces that it has entered into an arrangement agreement with Peptide Development Labs Inc. (“PDL”) dated September 1, 2026 (the “Arrangement Agreement”), pursuant to which HYTN will separate its peptide-focused drug development business centered on the pre-clinical development of a subcutaneous injectable BPC-157 drug candidate for refractory ligament disorders into PDL (the “Arrangement”). 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 (“Shareholders”) will receive common shares in PDL (“PDL Common Shares”) in proportion to their shareholdings in HYTN. HYTN currently holds approximately 17% of PDL and, after PDL completes a concurrent financing, the Shareholders are expected to own approximately 14% 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 (a “HYTN Common Share”) 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 (the “Court”) and by the affirmative vote of 66 2/3% of the Shareholders. A meeting of Shareholders to approve, among other things, the Arrangement, is expected to occur in October 2026 (the “Meeting”).

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 spin-out 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 Inc. 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.

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
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements regarding the proposed plan of arrangement involving the Company and PDL, including the anticipated structure, terms, timing and completion of the Arrangement; the receipt by Shareholders of PDL Common Shares; the transfer of assets and business operations to PDL; the anticipated capitalization, management and board composition of PDL; the proposed concurrent financing and the anticipated use of proceeds thereof; the intention of PDL to seek a public listing; the anticipated timing of the Meeting and closing of the Arrangement; and the expected benefits of the Arrangement, including the creation of two focused entities and potential value maximization.

Forward-looking information is typically identified by the use of words such as “expects”, “intends”, “plans”, “anticipates”, “believes”, “proposes”, “may”, “will”, “should”, “could” or similar expressions, including negative variations thereof, or statements that certain events or conditions “will”, “may” or “should” occur.

Forward-looking information is based on a number of material factors and assumptions, including, without limitation: that all necessary approvals of Shareholders, the Court, the CSE and other regulatory authorities will be obtained in a timely manner or at all; that the Arrangement will be completed on the terms and within the timeframe currently contemplated; that the proposed asset transfer and related transactions will be implemented as expected; that PDL will be able to complete the contemplated financing and obtain sufficient funding to execute its development plans; that suitable management, board and third-party arrangements will be established; that necessary manufacturing, supply and device platform arrangements will be available on acceptable terms; and that applicable regulatory pathways will remain available to support the advancement of PDL’s development program.

Although the Company believes that the expectations and assumptions underlying such forward-looking information are reasonable as of the date hereof, they may prove to be incorrect, and no assurance can be given that such expectations will prove to be accurate.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such risks and uncertainties include, without limitation: the risk that the Arrangement may not be completed, or may not be completed on the terms or timeline currently contemplated; the failure to obtain required approvals; the failure to enter into or complete any ancillary agreements or other documentation required to implement the Arrangement; changes to the structure or terms of the Arrangement or any related financing; risks that PDL is unable to obtain sufficient financing or complete a public listing; risks associated with early-stage and pre-clinical drug development; regulatory risks, including those relating to clinical development pathways, approvals and compliance requirements; risks relating to reliance on third-party manufacturers, service providers and supply chains; operational and execution risks; intellectual property risks; and general economic, market and financing conditions.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. Additional information regarding risk factors applicable to the Company is available in its public disclosure documents filed on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained in this press release is made as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information.