ZYUS Life Sciences Corporation Announces Closing of First Tranche of Secured Loan Financing and Provides an Update on its Annual Filings

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SASKATOON, SK, May 20, 2026 /CNW/ - ZYUS Life Sciences Corporation (the "Company") (TSXV: ZYUS), a clinical-stage life sciences company focused on the development and commercialization of novel non-opioid drug candidates for pain management, is pleased to announce that its wholly-owned subsidiary, ZYUS Life Sciences Inc. ("ZYUS Inc."), has closed a first tranche (the "First Tranche") of a secured loan financing (the "Secured Loan") on May 20, 2026 with certain lenders (the "Lenders"), including certain insiders of the Company, for gross proceeds of CAD$180,000. The aggregate size of the Secured Loan offering is up to CAD$2,000,000. Subject to receipt of approval from the TSX Venture Exchange (the "Exchange"), the Secured Loan will be secured by a security interest granted under the terms of a general security agreement (subject to an exception in respect of certain assets). The Secured Loan bears interest at a rate of 12% per annum, payable on maturity, is pre-payable by the ZYUS Inc. at any time without penalty or premium, and will mature on November 19, 2026.

Certain insiders of the Company (the "Insiders") participated in the First Tranche for an aggregate amount of CAD$100,000. Such participation constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), as the Insiders are member of the Board of Directors of the Company (the "Director Lenders"). The Director Lenders abstained from voting on the approval of the of the Secured Loan by the Board of Directors of the Company.

The Company has relied on the exemption from the valuation requirement pursuant to section 5.5(b) (Issuer Not Listed on Specified Markets) of MI 61-101 and from the minority shareholder approval requirement prescribed by section 5.7(1)(a) (Fair Market Value Not More Than 25 Percent of Market Capitalization) of MI 61-101. The Company did not file a material change report more than 21 days before issuance of the Secured Loan because the details of the Secured Loan were not settled until recently.

The Company intends to use the net proceeds of the First Tranche for general working capital purposes. There is no undisclosed material information by the Company, and all independent directors have approved the Secured Loan described in this news release.

Update on Annual Filings

Further to the news releases dated April 30, 2026 and May 6, 2026, the Company was unable to file its annual audited financial statements for the fiscal year ended December 31, 2025, the related management's discussion and analysis, and the CEO and CFO certificates relating to the audited annual financial statements as required by National Instrument 52-109 – Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the "Annual Filings") prior to the April 30, 2026 filing deadline due to the additional time required to complete accounting and audit procedures for various complex accounting matters. The Company continues to work diligently with its auditor, KPMG LLP to complete the audit. The Company expects to file the Annual Filings on or before the week of May 31, 2026. The Company anticipates that the failure-to-file cease trade order ("FFCTO"), which was issued on May 6, 2026, as a result of the delay in the Annual Filings, will remain in place until such time as the Annual Filings are filed.

About ZYUS Life Sciences Corporation

ZYUS (TSXV: ZYUS) is a life sciences company focused on the development and commercialization of novel cannabinoid-based pharmaceutical drug candidates for pain management. Through rigorous scientific exploration and clinical research, ZYUS aims to secure intellectual property protection, safeguarding its innovative therapies and bolstering shareholder value. ZYUS' unwavering commitment extends to obtaining regulatory approval of non-opioid-based pharmaceutical solutions, in pursuit of transformational impact on patients' lives. For additional information, visit www.zyus.com or follow us on X @ZYUSCorp.

Cautionary Note Regarding Forward-Looking Statements

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to the Company's current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements include statements relating to the Secured Loan, the Annual Filings, and the FFCTO, and are based on current expectations and assumptions that involve a number of risks and uncertainties, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this news release. These risks and uncertainties include but are not limited to: the Company's anticipated use of the proceeds from the Secured Loan; the risk that no additional funds are secured under the Secured Loan; regulatory approval of the Secured Loan may not be obtained; the Company's inability to repay the Secured Loan; amounts available from the Secured Loan may be insufficient to fund the Company's operations; in the absence of additional tranches of funding becoming available under the Secured Loan, the Company may be unable to fund its operations and obligations; whether the Company will file the Annual Filings by the week of May 31, 2026; the impact of the FFCTO on the Company, its shareholders and directors; whether the FFCTO will be revoked in the timeline contemplated by the Company; the Company's expectations relating to its audit progress and results; and the factors discussed from time to time in the Company's filings with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR+ website at www.sedarplus.ca. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Security holders, potential security holders, and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks, and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections, and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

SOURCE ZYUS Life Sciences Corporation

For further information please contact: ZYUS Media Inquiries, [email protected], 1-833-651-7723; ZYUS Investor Relations, [email protected]