Mr. Robert Farrell reports

KALYTERA THERAPEUTICS, INC. ANNOUNCES CLOSING OF FIRST TRANCHE OF BROKERED PRIVATE PLACEMENT

Kalytera Therapeutics Inc. has completed a first tranche closing of its previously announced brokered private placement offering of common shares of the company. The first tranche closing consisted of the issuance of 29,833,300 common shares at a price of 45 cents per common share for gross proceeds of $13,424,985. Clarus Securities Inc., as lead agent, together with Haywood Securities Inc. and Canaccord Genuity Corp., acted as agents for and on behalf of the company in connection with the offering. Up to a further 3,500,033 common shares may be issued in subsequent tranches of the offering representing up to a further $1,575,015 in gross proceeds (for a total of up to 33,333,333 common shares representing total gross proceeds of up to $15-million). The net proceeds of the offering will be used by the company for the acquisition of Talent Biotechs Ltd., to complete work required to advance the Talent Biotechs product into phase 2b clinical testing for Food and Drug Administration purposes, and for general corporate and working capital purposes. Pursuant to the first tranche, the agents received a cash commission equal to 7 per cent of the gross proceeds of the offering and 2,088,331 broker warrants, each of which is exercisable to acquire one common share at the offering price until Feb. 7, 2019.

In connection with the offering, the company has agreed that it will use commercially reasonable efforts to appoint a nominee of the largest subscriber in the offering, Anson Funds, to the company's board of directors, after closing.

All securities issued in connection with the offering are subject to a hold period expiring on June 8, 2017, in accordance with applicable Canadian securities laws. The offering remains subject to final TSX Venture Exchange approval.

About Kalytera Therapeutics Inc.

Kalytera Therapeutics is pioneering the development of the next generation of cannabinoid therapeutics. Through its proven leadership, drug development expertise and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs.

Kalytera is focused first on developing a new class of proprietary cannabidiol (CBD) therapeutics. CBD is a remarkable compound that has shown activity against a number of pharmacological targets.

We seek Safe Harbor.