Mr. Jim Hutchens reports

IMAGIN MEDICAL REPORTS FISCAL 2019 FIRST QUARTER RESULTS

Imagin Medical Inc. has released financial results for the three months ended Dec. 31, 2018. All amounts, unless otherwise specified, are presented in accordance with international financial reporting standards (IFRS).

Recent corporate developments:

• Completed, through Imagin's optoelectronic design firm, Optel Inc., the proof-of-concept phase of the redesigned i/Blue imaging system's control unit and validated the performance of the light source and imaging modules;
• Met with the U.S. Food and Drug Administration (FDA) to discuss the i/Blue imaging system's regulatory path and the potential need for a clinical study; Imagin will use the FDA's feedback to help refine its regulatory strategy and expects that discussions with the FDA will be continuing;
• Welcomed Chris Bleck as a director of the company;
• Received proceeds of approximately $1-million as a result of the exercise of 9,533,540 previously issued common share purchase warrants.

"This quarter, Optel completed the redesign of the i/Blue imaging system's control unit, resulting in an innovative modular system that has a 90-per-cent-smaller footprint than our original prototype," said Jim Hutchens, Imagin's president and chief executive officer. "We believe the redesign has resulted in a highly manufacturable and cost-effective product that conforms to all FDA specifications. As we continue the dialogue with the FDA to refine our regulatory strategy, we will work with Optel to prepare the system's dual control camera unit for functional unit testing in the coming weeks."

Summary first quarter fiscal 2019 financial results

Total operating expenses for the first quarter of fiscal 2019 were $1,011,586, compared with $1,270,498 for the same quarter in 2018, and consisted primarily of research and development (R&D) and general and administrative (G&A) expenses. R&D expenses for the first quarter of fiscal 2019 were $372,494 compared with $38,012 in the same quarter in 2018. The increase in R&D was primarily attributable to development, design, engineering and regulatory expenses. G&A expenses for the first quarter of fiscal 2019 were $639,092 compared with $1,232,486 for the same quarter in 2018. The decrease in G&A expenses was primarily attributable to the decrease in stock-based compensation.

Net loss for the three months ended Dec. 31, 2018, was $1,011,586, or a one-cent loss per common share, compared with a net loss of $1,270,498, or a two-cent loss per common share, for the three months ended Dec. 31, 2017.

Liquidity and outstanding share capital

As at Dec. 31, 2018, the company had cash of $5,365,497.

As at Feb. 27, 2019, Imagin had an unlimited number of authorized common shares with 139,060,278 common shares issued and outstanding.

The company's financial statements and management's discussion and analysis are available on SEDAR.

Conference call details

Imagin is pleased to invite all interested parties to participate in a conference call on Feb. 27, 2019, at 5 p.m. ET, during which the results will be discussed.

Live call

Canada and the United States:  888-428-7458

International:  862-298-0702

Replay:  919-882-2331 (Canada and the United States)

Replay ID:  43992

The call will also be broadcast live and archived on the company's website under events and presentations.

About Imagin Medical Inc.

Imagin Medical is a surgical imaging company focused on establishing a new standard of care in visualizing cancer during minimally invasive surgeries (MIS). The company believes its first product, the i/Blue imaging system, will dramatically improve surgeons' ability to visualize cancerous cells by producing higher-quality images more quickly compared with current methods. Based on advanced optics and light sensors, the i/Blue imaging system employs patented ultrasensitive imaging technology and offers easy-to-use viewing options for more accurate resection. The company's initial focus is bladder cancer.

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