Ms. Kelly Myles reports

BAYLIN TECHNOLOGIES ANNOUNCES CLOSING OF ACQUISITION OF ALGA MICROWAVE INC.

Baylin Technologies Inc. has closed its previously announced acquisition, through a wholly owned subsidiary, of all of the issued and outstanding capital stock of Alga Microwave Inc. for a purchase price of $25-million (consisting of $21-million in cash and $4-million in common shares in the capital of the company at a price of $3.40 per common share). The vendors may also receive up to an additional $2-million in earnout payments if certain criteria are met over the two-year period postclosing of the acquisition.

Concurrent with the closing of the acquisition, Baylin, through a wholly owned subsidiary, has closed its previously announced acquisition of 9021-8116 Quebec Inc. (of the premises in which Alga's operations are primarily conducted) for an aggregate purchase price of $6.2-million.

As announced on July 10, 2018, Baylin closed its bought deal offering of 7,419,355 subscription receipts at a price of $3.10 per subscription receipt and $17.25-million principal amount of 6.5 per cent extendible convertible unsecured debentures of the company for aggregate gross proceeds of $40,250,000.50. Upon satisfaction of the escrow release conditions, each subscription receipt was converted into one common share and the net proceeds from the sale of the subscription receipts were released from escrow. Holders of the subscription receipts were not required to take any action in order to receive the common shares.

A portion of the net proceeds of the offering were used to satisfy payment of the cash purchase price for the acquisition. The purchase price for the Alga facility was satisfied in part by the assumption of existing debt, with the balance of the purchase price payable to the vendor one year after closing (bearing interest at 8 per cent per year, payable quarterly, and repayable at any time without penalty).

About Baylin Technologies Inc.

Baylin Technologies is a diversified leading global wireless technology management company. Baylin Technologies focuses on research, design, development, manufacturing, and sales of passive and active radio frequency products and services. Baylin Technologies aspires to meet customers' needs and anticipate the direction of the market.

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