Vector Science & Therapeutics Agrees to an Option to Invest in LyoGenesis Plus, Securing Long-Term Access to FDA-Registered, cGMP Manufacturing

Option agreement Supports Vector's Entry into the $80.8 Billion Peptide Market with 22 Novel Pharmaceutical-Grade Formulations

MEQUON, Wis., May 13, 2026 /CNW/ -- Vector Science & Therapeutics (TSXV: PAIN) ("Vector" or the "Company") today announced it has entered into an option agreement to purchase up to a 15% equity interest in LyoGenesis Plus for cash payments over time, from treasury for of up to US$1,000,000 (the "Option"). The option is exercisable over a three-year period. LyoGenesis Plus has entered into an agreement to acquire MPP Group LLC ("MPP"), an FDA-registered, cGMP-compliant contract development and manufacturing organization headquartered in Mequon, Wisconsin. If exercised in its entirety over the three years, the Option would give Vector a 15% ownership interest in MPP, securing a long-term pharmaceutical-grade manufacturing platform for Vector's growing portfolio of peptide formulations and drug delivery products.

Key Highlights

• FDA-Registered, cGMP Manufacturing -- MPP operates a modern 35,000 sq. ft. facility in Mequon, Wisconsin, equipped with sophisticated analytical instrumentation. The Option gives Vector an ownership stake through LyoGenesis in this infrastructure without the cost or time required to build a comparable facility.
  
  
• 22 Novel Peptide Formulations -- Vector and MPP will jointly develop shelf-stable peptide formulations with a target stability of up to 24 months, including 14 peptides recently removed from the FDA Category 2 list.
  
  
• Capital Leverage Through LyoGenesis Plus -- LyoGenesis Plus is well-capitalized with a $2 million equipment line of credit and a $1 million accounts receivable facility, giving Vector non-dilutive access to expansion capital as manufacturing needs grow.

"Ownership of an FDA-registered, cGMP manufacturing facility is foundational for any company serious about delivering pharmaceutical-grade therapeutics," said Tommy Thompson, Chairman of Vector Science & Therapeutics and former U.S. Secretary of Health and Human Services. "This Option gives Vector a credible, long-term manufacturing platform from which to build its peptide portfolio and deliver pharmaceutical-grade products to physicians."

Key Elements Supporting Exercise of the Option

• The Option -- Vector has the right to acquire up to a 15% equity interest in LyoGenesis Plus for a cumulative cash investment, from its treasury, of up to US$1,000,000, exercisable at any time over a three-year period. This structure allows Vector to invest incrementally in line with its business growth and preserve treasury and cashflow.
  
  
• MPP Facility -- Through its equity position in LyoGenesis Plus, Vector gains an ownership stake in MPP's FDA-registered, cGMP-compliant manufacturing facility in Mequon, Wisconsin, without the cost or timeline required to build equivalent infrastructure.
  
  
• LyoGenesis Plus -- LyoGenesis Plus was founded by Tommy Thompson and Bill Jackson to acquire and consolidate pharmaceutical services companies. Following its acquisition of MPP, LyoGenesis Plus intends to continue seeking additional CDMOs across North America as part of its long-term growth strategy.

"Controlling our manufacturing platform is critical to our long-term success in the peptide market," said Bill Jackson, Chief Executive Officer of Vector Science & Therapeutics. "LyoGenesis Plus and MPP give us a pharmaceutical-grade foundation -- not research-grade -- from which to supply physicians with novel, shelf-stable peptide formulations as that $80.8 Billion market continues to grow." (Grandview Research) (https://www.grandviewresearch.com/industry-analysis/peptide-therapeutics-market)

Tommy Thompson, Chairman of Vector, and Bill Jackson, Chief Executive Officer of Vector, are minority owners in LyoGenesis Plus, together holding less than 50% of its equity. Both individuals declared their conflicts of interest and recused themselves from the Vector board vote approving this transaction.

Regulatory and Exchange Matters

The grant and exercise of the Option does not constitute a "related party transaction" as defined under Multilateral Instrument 61-101: Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as related parties of Vector do not own more than 50% of the equity securities of LyoGenesis Plus. In any event, even if the transaction were considered a related party transaction, the Company would rely on the exemptions from the valuation and minority shareholder approval requirements set out in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the Option nor the shares issuable upon its exercise exceeds 25% of Vector's market capitalization.

The exercise of the Option is a Reviewable Transaction under TSXV Policy 5.3 -- Acquisitions and Dispositions of Non-Cash Assets -- due to the involvement of Non-Arm's Length Parties. The Option cannot be exercised until TSXV conditional approval has been received, all required documentation has been submitted, and all closing conditions have been satisfied.

The TSXV has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.

Pharmaceutical-Grade vs. Research-Grade Peptides

Pharmaceutical-grade (also called medical-grade) peptides are manufactured under the U.S. Food and Drug Administration's current Good Manufacturing Practices (cGMP) in FDA-registered facilities. They are tested to defined specifications for identity, purity, potency, sterility, and endotoxins, and they are intended for use in humans under physician supervision.

Research-grade peptides, by contrast, are produced for laboratory study only. They are typically labeled "for research use only" or "not for human use," are not manufactured to pharmaceutical quality or sterility standards and are not regulated for therapeutic application.

Under this agreement, Vector and MPP will jointly develop and manufacture pharmaceutical-grade peptides intended exclusively for physician-supervised therapeutic use.

About Vector Science & Therapeutics

Vector Science & Therapeutics, Inc., headquartered in Mequon, Wisconsin, develops novel biomechanical devices and active localized drug delivery platforms to equip clinicians with site-directed interventions where precision matters and systemic risks are unacceptable. The Company's shares are listed on the TSX Venture Exchange under the symbol PAIN. For more information, visit www.vectorscience.co.

About MPP Group LLC

MPP Group LLC is a contract development and manufacturing organization headquartered in Mequon, Wisconsin, operating an FDA-registered drug manufacturing facility with cGMP-compliant aseptic capabilities. MPP serves clients across pharmaceutical formulation development, analytical method development, and small- to mid-scale aseptic manufacturing.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the development and manufacturing of peptide formulations, the commencement and timing of formulation and manufacturing activities, capital expenditure expectations, market size, and the Company's commercialization strategy. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied. Vector Science & Therapeutics undertakes no obligation to update these statements, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Vector Sciences & Therapeutics

Investor & Media Contact: Bill Jackson, Chief Executive Officer, Vector Science & Therapeutics, [email protected], 289-659-9313