HYTN Announces Initial Purchase Order under Manufacturing Partnership with Industry-Leading SNDL

Rhea-AI Summary

HYTN Innovations has received an initial purchase order under manufacturing and pricing agreements with SNDL, marking a significant step in their partnership for international cannabis markets. The collaboration, established in August 2024 with a two-year term, involves HYTN processing EU GMP-certified cannabis products for SNDL.

The initial order includes EU GMP-certified dried cannabis flower with multiple cultivars for export to the UK, with processing expected to complete by February 2025. Import permits from the UK's Home Office were received on January 6th, with shipping anticipated in Q1 2025.

This partnership targets key international markets including the UK, Germany (estimated CAD $2 billion medical cannabis market), and Australia (exceeded AUD $200 million in 2022). HYTN's EU GMP manufacturing capabilities combined with SNDL's market presence positions both companies for expansion in the global cannabis industry.

Positive

• Secured manufacturing partnership with major industry player SNDL
• Received initial purchase order for EU GMP-certified cannabis products
• Obtained UK import permits, enabling market access
• Two-year agreement term provides stable business outlook
• Targeting large markets: Germany (CAD $2B) and Australia (AUD $200M+)

Negative

• None.

VANCOUVER, British Columbia, Jan. 10, 2025 (GLOBE NEWSWIRE) -- HYTN Innovations Inc. (CSE: HYTN, FSE: 85W0, OTC PINK: HYTNF) (“HYTN” or the “Company”), a pharmaceutical company specializing in pharmaceutical-grade cannabis manufacturing is pleased to announce the receipt of an initial purchase order under manufacturing and pricing agreements (the Agreements) with SNDL Inc. (NASDAQ: SNDL) ("SNDL"), one of the world’s largest vertically integrated cannabis companies. This collaboration underscores the Company’s commitment to expanding its presence in regulated international markets, including the UK, Germany, and Australia.

Under the executed agreements, HYTN will utilize EU Good Manufacturing Practice (EU GMP) to process both bulk and finished cannabis products for SNDL. HYTN’s ability to meet stringent international requirements, combined with SNDL’s cannabis expertise, positions both companies to rapidly scale operations and introduce high-quality products to key international markets.

“This partnership underscores our commitment to delivering exceptional cannabis products in regulated international markets,” said Elliot McKerr, CEO of HYTN. “With SNDL’s robust market presence and HYTN’s advanced manufacturing standards, we are poised to make a significant impact on the global cannabis industry.”

The progress of the partnership is highlighted by the receipt of HYTN’s initial purchase order from SNDL for EU GMP-certified dried cannabis flower, featuring multiple cultivars for export to the UK. Processing of the initial order is expected to be completed by February 2025. Jason Broome, COO of HYTN, emphasized the importance of this milestone, stating, "This order highlights HYTN’s capacity for high-volume, EU GMP-certified cannabis production, ensuring our partners, like SNDL, have the infrastructure needed to expand into global markets. We’re excited to collaborate on this opportunity and demonstrate our operational expertise."

This collaboration positions the Company to capitalize on the expanding global cannabis market, including Germany’s medical cannabis industry, valued at an estimated CAD $2 billion¹, and Australia’s rapidly growing market, which surpassed AUD $200 million in 2022², underscoring the opportunities ahead.

The initial purchase order is anticipated to ship in Q1 2025, import permits from the UK's Home Office were received on Jan 6th. The broader agreements, which were signed in August 2024 and have a term of two years, establish the operational framework for a partnership supporting HYTN's processing of SNDL cannabis products destined for international markets.

^{[1] J. Green, International Cannabis Business Conference (July 8, 2024), "Germany’s Medical Cannabis Industry Is Booming."}

^{[2] J. Ryan, Pennington Institute (December 2023), "Cannabis in Australia."}

About HYTN Innovations Inc.

HYTN Innovations Inc. is a pharmaceutical company that specializes in the formulation, manufacturing, marketing, and sale of products containing psychoactive and psychotropic compounds, including cannabis-derived cannabinoids and psilocybe-derived tryptamines. HYTN is dedicated to becoming a premier provider of these products across all federally regulated markets. The Company accomplishes this by strategically identifying market opportunities and effectively bringing innovative products to market through its advanced development platform.

About SNDL Inc.

SNDL is a public company whose shares are traded on the Nasdaq under the symbol "SNDL." SNDL is the largest private-sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Superette. SNDL is a licensed cannabis producer and one of the largest vertically integrated cannabis companies in Canada specializing in low-cost biomass sourcing, indoor cultivation, product innovation, low-cost manufacturing facilities, and a cannabis brand portfolio that includes Pearls by Grön, No Future, Bhang Chocolate, Top Leaf, Contraband, Citizen Stash, Sundial Cannabis, Palmetto, Spiritleaf Selects, Bon Jak, Versus, Value Buds, Namaste, Re-up, Grasslands and Vacay. SNDL's investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information on SNDL, please go to https://sndl.com/.

About Good Manufacturing Practices (GMP)

GMP guidelines provide guidance for manufacturing, testing, and quality assurance to ensure that a manufactured product is safe for human consumption or use. Many countries have legislated that manufacturers follow GMP procedures and create their own GMP guidelines that correspond with their legislation.

For more information contact:

Elliot McKerr
Chief Executive Officer
1.866.590.9289

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.

Certain information contained herein may constitute forward-looking information that involve risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, including, but not limited to, statements regarding the receipt of additional purchase orders, the Company’s ability to fulfill the same, and the Company’s expanded abilities to export its products globally, and to successfully collaborate with SNDL. Factors that could cause actual results to vary from forward-looking statements or may affect the operations, performance, development, and results of the Company’s business include, among other things: the Company’s inability to fulfill purchase orders; the Company’s inability to maintain relationships with key partners; the Company's failure to generate sufficient cash flow from operations to meet its current and future obligations; the Company's failure to access sources of debt and equity capital; changes to the regulatory framework within which the Company operates; competitive factors, pricing pressures, and supply and demand in the Company’s industry; and general economic and business conditions. Any statements that are not statements of historical fact are deemed to be forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release, and, except to the extent required by applicable law, the Company assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether because of new information, future events, or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary note.

FAQ

What is the value of HYTN's initial purchase order from SNDL?

The specific value of the initial purchase order was not disclosed in the announcement.

When will HYTN (HYTNF) complete processing the initial SNDL order?

Processing of the initial order is expected to be completed by February 2025.

What markets will HYTN and SNDL target through their partnership?

The partnership targets regulated international markets including the UK, Germany, and Australia.

How long is the manufacturing agreement between HYTN and SNDL?

The agreements were signed in August 2024 and have a term of two years.

When did HYTN receive UK import permits for the SNDL order?

HYTN received import permits from the UK's Home Office on January 6th, 2025.

What is the size of the target markets for HYTN's products?

Germany's medical cannabis market is valued at CAD $2 billion, while Australia's market exceeded AUD $200 million in 2022.