Tryp Therapeutics Announces $2,000,000 Financing and Changes in Management, Board of Directors

Tryp Therapeutics (CSE: TRYP), a pharmaceutical company focused on developing psilocybin-based compounds for diseases with unmet medical needs, is pleased to announce a non-brokered private placement to its co-Founder and Executive Director, William J. Garner, M.D. The Placement consists of 11,111,111 million units at a price of $0.18 per Unit, to raise gross proceeds of approximately $2.0 million. Each Unit consists of one Common Share and one Common Share purchase warrant. Each Warrant entitles the holder to acquire one additional Common Share at a price of $0.25 per Common Share for a period of 24 months from the date of issuance.

The proceeds of the Placement will be used to advance Tryp’s research and development programs and for general working capital purposes. Closing of the Placement is anticipated to occur on or about February 7, 2022, and is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the Canadian Securities Exchange. The securities issued pursuant to the Placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The Warrants will not be listed on any exchange.

In connection with the Placement, the Company has agreed to enter into an investor rights agreement with Dr. Garner, pursuant to which Dr. Garner would be granted the right to nominate three directors to the Company’s board of directors provided that he holds at least 10% of the undiluted equity of the Company.  In addition, Dr. Garner would be granted a right of participation in the Company’s future financings such that he can maintain his pro rata ownership in the Company.  The Company also agreed to reimburse Dr. Garner for expenses incurred in connection with the Placement in the amount of $50,000.

Additionally, effective February 3, 2022, James Gilligan, Ph.D., Tryp’s President and Chief Scientific Officer, was appointed Interim Chief Executive Officer and Daren Graham, J.D. was appointed Interim Chief Financial Officer. Dr. Gilligan succeeds Gregory McKee, who departed from his roles as Chief Executive Officer and Director of the Company on February 3, 2022. Mr. Graham succeeds Luke Hayes, who departed from his role as Chief Financial Officer on January 31, 2022. Effective February 1, 2022, Company Director P. Gage Jull was appointed as the Company’s new Chairman of the Board.

“I have been a member of Tryp’s senior management since 2020, and I feel privileged to now lead the Company during this very pivotal year ahead. We have tremendous science, and several very important milestones to reach in the coming months,” stated Dr. Gilligan. “The Tryp leadership team is solely-focused on initiating our first clinical trial and continuing the development of TRP-8803, which will take our PFN™ program beyond psilocybin.”

Tryp Therapeutics is a pharmaceutical company focused on developing psilocybin-based compounds for the treatment of diseases with unmet medical needs. Tryp’s Psilocybin-For-Neuropsychiatric Disorders (PFN™) program is focused on the development of synthetic psilocybin as a new class of drug for the treatment of chronic pain and other indications. The Company has announced upcoming Phase 2a clinical trials with the University of Michigan and the University of Florida to evaluate its drug products for fibromyalgia and binge eating disorder, respectively. Tryp is also developing a proprietary psilocybin-based product, TRP-8803, that uses a novel formulation and route of administration to improve the patient experience. For more information, please visit www.tryptherapeutics.com.