HYTN gains psilocybin cultivation tech in an all-stock buyout of the research startup.
HYTN Innovations Inc. (CSE: HYTN) acquired Prism Scientific Labs Inc. for approximately $242,000 in an all-stock deal.
The Vancouver-based firm bought all outstanding shares of Prism Scientific Labs on July 16 in exchange for 12.1 million HYTN shares, according to a business acquisition report filed by the company. The also deal includes a contingent consideration arrangement, under which HYTN will pay an additional $30,000 and issue 100,000 more shares if certain milestones are met by June 2025.
The acquisition gives HYTN exclusive rights to Prism’s intellectual property, including a key license for technology used in growing psilocybin-containing mushrooms.
The licensed technology, originally developed by Lux Sit Systems Inc., is currently under patent review. HYTN said it’s already begun using the technology at its facility in Kelowna, British Columbia. The facility is described on the company’s website as a “GMP-licenced, right-sized facility for innovative and scalable manufacturing.”
HYTN offers GMP cannabis processing services and produces a range of cannabis consumer packaged goods for both the medical and recreational marketplaces.
The company previously said its existing product line includes cannabis-infused sparkling beverages that feature its proprietary “elevation technology,” which is used to create tiny droplets of active ingredients that can improve how well the body absorbs substances.
HYTN also received a Drug Establishment License in June from Health Canada, allowing it to manufacture pharmaceutical-grade compounds.
The move builds on HYTN’s earlier foray into psychedelics, which began with the cultivation of psilocybin mushrooms in 2023 under a Health Canada Dealer’s License.
Lately, the company touted “elevated GMP manufacturing” and “GMP manufacturing of pharma-quality psychoactive and psychotropic compounds” on its website. It claims to enable “global market access for non-sterile pharmaceuticals.”
Filings show Prism reported a net loss of $63,473 for the year ending June 30, 2024, with cash reserves of $182,808.
The company noted in filings that there are uncertainties about its ability to continue as a going concern.
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