Mr. Anthony Businskas reports

SPECTRAL MEDICAL INC. COMPLETES $10 MILLION BOUGHT DEAL FINANCING

Spectral Medical Inc. has closed its previously announced bought-deal financing pursuant to which it sold 14.3 million common shares of the company to a syndicate of underwriters led by Cormark Securities Inc., which included Mackie Research Capital Corp., from the treasury of the company at a price of 70 cents per share. The shares were offered in each of the provinces of Canada, except Quebec, by way of short-form prospectus.

The company raised aggregate gross proceeds of $10.01-million under the offering, which will be used for the completion of the company's EUPHRATES clinical trial, the commercialization of the company's PMX device and for general corporate purposes.

Under the terms of the offering, the company has granted the underwriters an option to purchase up to an additional 2,145,000 shares from the company at the offering price, exercisable at any time up to 30 days following the closing of the offering, for market stabilization purposes and to cover overallotments, if any.

Under the offering, the company has also issued to the underwriters 858,000 broker warrants totalling 6 per cent of the number of shares sold pursuant to the offering. Each broker warrant entitles the holder thereof to acquire one share at a price equal to the offering price for a period of 24 months from closing of the offering.

Each of Toray Industries Inc. and Birch Hill Equity Partners IV LP, Birch Hill Equity Partners (U.S.) IV LP and Birch Hill Equity Partners (Entrepreneurs) IV LP participated in the offering, purchasing 2,857,000 shares and 533,000 shares, respectively. The Birch Hill purchase of shares is expected to settle on or about Feb. 24, 2016. Following the closing of the offering and the settlement of the Birch Hill subscription, Toray owns 45,630,105 shares, or approximately 22.22 per cent of the issued and outstanding shares, and the Birch Hill LPs will own 33,517,718 shares or approximately 16.32 per cent of the issued and outstanding shares, in each case calculated on a non-diluted basis and assuming no exercise of the overallotment option.

We seek Safe Harbor.