Awakn Life Sciences to Focus Solely on Research and Development of Therapeutics Targeting Addiction

Term Sheet Signed to License Healthcare Intellectual Property to UK Healthcare Consortium Exclusively in the UK Market

Strategic Review of Norwegian Healthcare Clinics Business Unit Initiated

Toronto, Ontario--(Newsfile Corp. - June 9, 2023) - Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) (FSE: 954) ("Awakn") a biotechnology company developing therapeutics targeting addiction, with a near term focus on Alcohol Use Disorder, announces today its intention to exit healthcare services to focus solely on research and development ("R&D") of therapeutics to treat addiction and licensing of its intellectual property.

As part of this process, Awakn:

• Has signed a non-binding term sheet to exclusively license selected elements of its healthcare services intellectual property ("IP"), within the UK, and to a non-exclusive license for Awakn Kare, also within the UK, with a consortium consisting of a private UK investment company and a large UK 3^rd sector addiction and mental health treatment provider, for an upfront fee and a revenue share.
  
  
• Has initiated a strategic review of its Norwegian healthcare clinics business unit, Awakn Oslo AS, which consists of two clinics, one in Oslo and one in Trondheim. Awakn Oslo AS generated its highest monthly revenue to date during May 2023, driven by the opening of its Trondheim clinic in March 2023, and its new Oslo clinic in May 2023. As part of the strategic review, Awakn is seeking potential purchasers of Awakn Oslo AS.

• Is initiating a restructuring of its UK healthcare clinics business unit, in which Awakn's UK entities are expected to enter into administration or liquidation.

Awakn is undertaking these steps to focus capital currently available and to be received from the closing of future tranches of its private placement financing announced on April 26, 2023 solely on its R&D programs and its IP licensing activities.

Awakn will continue to execute its R&D strategy. Awakn's focus will be on efficiently progressing forward its clinical and pre-clinical stage pipelines, including AWKN-P001, its Phase III lead clinical development program, targeting Severe Alcohol Use Disorder, which is majority funded by the UK Department of Health and is expected to start in the second half of 2023. AWKN-P001 has received 66% government funding for the cost of the trial and the backing of the UK National Health Service who will be running the trial across ten of its locations, resulting in Awakn's cost of the study being approximately GBP£800,000.

The scientific and research team at Awakn, which includes world-renowned Prof. David Nutt, Chief Research Officer, Prof. Celia Morgan, Head of ketamine-assisted therapy and Shaun McNulty, Chief Scientific Officer, are among some of the most experienced industry leaders and will continue to spearhead the progression of Awakn's research pipeline.

Anthony Tennyson, Awakn CEO commented, "Streamlining our operations and increasing our focus on the advancement of our pipeline, both from a resource and financial perspective, is something that is necessary, and we believe will have a positive impact for Awakn and our shareholders, to try to maximize the long-term value of each business. At the same time, the actions taken in the UK are deeply regrettable and not the route we had hoped for, however, critically they provide the best outcome for continuity of care for existing clients and continuity of employment for a majority of the Awakn Clinics UK team."

Awakn has also agreed to issue 2,700,000 share purchase warrants to a consultant of the Company. The warrants shall be exercisable at $0.63, for a period of five years from the date of issuance. The issuance of these warrants have been approved by the exchange.

About Awakn Life Sciences Corp.

Awakn Life Sciences Corp. is a biotechnology company developing therapeutics targeting addiction. Awakn has a near-term focus on Alcohol Use Disorder (AUD), a condition affecting 285m people globally for which the current standard of care is inadequate. Our goal is to provide breakthrough therapeutics to addiction sufferers in desperate need and our strategy is focused on commercializing our R&D pipeline across multiple channels.

www.AwaknLifeSciences.com | Twitter | LinkedIn | Facebook | www.AwaknClinics.com

Notice Regarding Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, including statements relating the business of the Company. All forward-looking statements, including those herein are qualified by this cautionary statement.

Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information. These include, but are not limited to: fluctuations in general macroeconomic conditions; the business plans and strategies of the Company; the ability of the Company to comply with all applicable governmental regulations in a highly regulated business; the inherent risks in investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal in some jurisdictions; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; fluctuations in securities markets; inconsistent public opinion and perception regarding the medical-use of psychedelic drugs; expectations regarding the size of the addiction market; and regulatory or political change. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.

Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking information. For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Investor Enquiries:

Anthony Tennyson, CEO, Awakn Life Sciences
anthony.tennyson@awaknlifesciences.com

Media Enquiries:

Gordo Whittaker, CMO, Awakn Life Sciences
gordo@awaknlifesciences.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/169426