Mr. Doug Blakeway reports

NANOTECH SECURITY RETIRES $3.0 MILLION NOTE

Nanotech Security Corp. has provided an update on the early retirement of a $3-million secured note. The note was previously issued to finance real estate assets acquired in the Fortress Optical Features Ltd. acquisition in September, 2014. It bore a 4-per-cent annual interest rate and was due in September, 2017.

The company used funds originally earmarked to redeem its $4.2-million convertible debentures. As many debenture holders elected to convert their debentures into common shares of the company, only $1.4-million was required to be repaid. With the recent retirement of the convertible debentures and now with the payment of the $3-million secured note, the company is debt free.

"Given our recent $13.3-million financing, the cash from operations generated in the third quarter, and the visibility into our pipeline, we decided to repay the debt early, instead of refinancing, to reduce our interest expense," said Nanotech chief executive officer Doug Blakeway. "Doing so saves the company $120,000 per year in interest and the company is now debt free with a strong cash balance to execute on our growth opportunities."

About Nanotech Security Corp.

Nanotech designs, manufactures and markets nano-optic OVDs and OTF products. These products have brand protection and enhancement applications across a wide range of markets, including banknotes, secure government documents, commercial branding and the pharmaceutical industry. The company is initially focusing its efforts on the banknote market due to its high margins and its established customer base.