Optimi Health Corp. has received a termination notice and demand for payment pursuant to a definitive supply agreement with a private entity focused on developing mushroom-based therapeutics. While the counterparty claims that Optimi has failed to perform its obligations under the Supply Agreement, the Company disputes all such claims and maintains the position that the termination is wrongful and that there was no breach of the Supply Agreement.

The Company is evaluating available legal remedies and damages with respect to the counterparty's actions.