HYTN and SNDL: A Global Push for GMP-Compliant Vape Cartridges

HYTN Innovations Inc. (CSE: HYTN, FSE: 85W0, OTC PINK: HYTNF) and SNDL Inc. (NASDAQ: SNDL) have joined forces to develop Good Manufacturing Practices (GMP) compliant vape cartridges, targeting global markets with stringent regulatory requirements. This strategic collaboration leverages HYTN's pharmaceutical-grade manufacturing expertise and SNDL's cannabis industry know-how, positioning both companies to capitalize on the expanding international cannabis market.

HYTN, a pharmaceutical company specializing in cannabis manufacturing, holds a Drug Establishment License and EU GMP equivalent certification under the International Pharmaceutical Cooperation Scheme (PIC/S). This enables the company to meet stringent international requirements for cannabis products, making it one of the few facilities in Canada capable of manufacturing vape cartridges for international distribution. SNDL, a vertically integrated cannabis company with a strong market presence, brings its cannabis expertise and resources to the table, further strengthening the partnership.

Under the Agreement signed on January 17, 2025, neither HYTN nor SNDL are obligated to exclusivity. Key milestones include the processing of three (3) commercial batches, with no obligation regarding sales volume or pricing terms. Upon completion of the development phase, both parties may explore a commercial manufacturing agreement for vape cartridges.

The market for GMP-compliant cannabis vape products continues to expand, with the number of medical cannabis patients in the UK projected to increase by 124% from 2024 to 2028. The German cannabis vape market is expected to reach 966.6 million USD by 2030, with Canada accounting for approximately 50% of Germany's medical and scientific cannabis imports. These trends underscore the strategic focus of HYTN and SNDL on GMP manufacturing to meet evolving international requirements.



The collaboration between HYTN and SNDL aligns with the strategic goals of both companies, leveraging their respective strengths to create synergies and expand their presence in the cannabis industry. By combining HYTN's pharmaceutical-grade manufacturing capabilities and SNDL's cannabis expertise and market presence, the partnership enables both companies to rapidly scale operations and introduce high-quality products to key international markets.

Expanding into regulated international markets, such as the UK, Germany, and Australia, presents both opportunities and threats for HYTN and SNDL. The growing demand in these target markets, strategic partnership, and regulatory compliance present significant opportunities. However, intense competition, regulatory challenges, and market fluctuations pose potential threats that the companies must navigate to successfully capitalize on the opportunities presented by this strategic move.

In conclusion, the collaboration between HYTN and SNDL addresses the key regulatory challenges in the global cannabis market by combining HYTN's GMP-certified facility and expertise with SNDL's cannabis background and resources. This partnership enables both companies to meet stringent international requirements, scale operations, and introduce high-quality products to key international markets. As the market for GMP-compliant cannabis vape products continues to expand, HYTN and SNDL are well-positioned to capitalize on the opportunities presented by this strategic move.