HYTN Innovations Inc (CSE:HYTN), a leader in the development and manufacture of psychoactive and psychotropic compounds, including cannabis and psilocybin, has completed the acquisition of Prism Scientific Labs Inc, as announced in their July 19 press release. This strategic move is intended to strengthen HYTN's capabilities in the manufacture of psychedelic compounds.
Strategic Acquisition
The acquisition aims to enhance HYTN's manufacturing processes, and specifically to increasing the yield of tryptamine in psychedelic mushrooms, and grants HYTN exclusive access to Prism's intellectual property, including a significant license from Lux Sit Systems Inc. The specialized equipment and technologies associated with this license are designed to increase both the yield and potency of psilocybin-containing mushrooms, essential to the manufacture of psychedelic drugs.
The license agreement, secured by Prism in June 2024, is valued at 100,000 shares of Prism stock and $35,000, with additional shares and cash payable on the first anniversary. Currently under patent review, the licensed intellectual property is being actively deployed at HYTN's Kelowna facility.
Financial Details And Strategic Growth
As consideration for the acquisition, HYTN issued 12,100,100 common shares to former Prism shareholders at a price of $0.195 per share, subject to a four-month hold period. This integration is expected to significantly advance HYTN's efforts in the development of psychoactive compounds for clinical applications, positioning the company as a leading supplier in federally regulated markets.
"We are thrilled to bring Prism into HYTN, finding a partner that can take our licenses and technologies and start developing them in real-world applications to create a better performing drug will provide tremendous advantages," said Tyler Lewis, director of Prism.
Elliot McKerr, CEO of HYTN Innovations Inc, highlighted the strategic importance of this acquisition, "This acquisition represents a key pillar in HYTN's long-term strategic growth plan, as it allows us to leverage Prism's unique licenses to enhance our research and development capabilities. By combining Prism's IP with our established operations, we are poised to drive innovation in the psychoactive and psychedelic compounds market."
Regulatory compliance and future plans.
HYTN also noted the importance of its recent Good Manufacturing Practice (GMP) certification for non-sterile pharmaceutical manufacturing of psilocybin-containing drugs, as announced on June 27, 2024. This certification underscores HYTN's commitment to maintaining high quality standards in its production processes.
The company plans to integrate key members of Prism's founding team as strategic advisors, ensuring a smooth transition and leveraging their expertise to drive HYTN's innovative capabilities. In addition, HYTN will file a Business Acquisition Report (BAR), as required by applicable securities laws, and will issue a press release following the filing.
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