Mr. Brooks Bergreen reports

HIT TECHNOLOGIES INC. CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

Hit Technologies Inc. has closed the second tranche of its previously announced non-brokered private placement of units, raising aggregate gross proceeds to the company of $300,000. Pursuant to the first and second tranches of the offering, the company issued 23.6 million units for aggregate gross proceeds to the company of $1.18-million.

At the closing of the second tranche of the offering, the company issued an aggregate of six million units at a subscription price of five cents per unit. Each unit is composed of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of seven cents for a period of 18 months from the date of the closing of the first tranche of the offering, provided that, in the event that the common shares trade at or above 15 cents for 10 consecutive trading days on the TSX Venture Exchange or exceed a volume-weighted average price of 15 cents during a consecutive 30-day period, the company will have the right to accelerate the expiry of the warrants by providing 30 days prior written notice to the warrantholders of such expiry. The common shares and warrants comprising the units issued as part of the second tranche of the offering, as well as any common shares issued upon the exercise of warrants, will be subject to a four-month hold period, which will expire on Sept. 27, 2016.

In connection with the first and second tranches of the offering, an aggregate finder's fee of $86,400 in cash and 1,728,000 finders' warrants were paid to Gravitas Securities Inc. (GSI), Haywood Securities Inc., Canaccord Genuity Corp. and Raymond James Ltd. Each finder's warrant entitles the holder to acquire one unit at an exercise price of five cents for a period of 18 months from the date of the first tranche closing. The finders' warrants issued as part of the second tranche of the offering, as well as any common shares and warrants comprising any units issued upon the exercise of finders' warrants, will be subject to a four-month hold period, which will expire on Sept. 27, 2016. As previously announced, GSI also acted as a financial adviser to the company with respect to the offering.

The company received conditional acceptance of the offering from the TSX Venture Exchange. The net proceeds of the offering will be used by the company for ramping up direct and channel sales and for general corporate and working capital purposes.

We seek Safe Harbor.