Mr. Doug Janzen reports

AEQUUS ANNOUNCES SALE OF ZIMED PF TO LUVO MEDICAL TECHNOLOGIES

Aequus Pharmaceuticals Inc. and Luvo Medical Technologies Inc. have signed an asset purchase agreement for the sale of Zimed PF.

"Since Zimed PF was launched in 2023 in collaboration with Medicom Healthcare Ltd., we've been pleased with the positive impact it has had with Canadian ophthalmologists and their patients. This transaction with Luvo will ensure consistent product supply to Canadians while significantly improving Aequus's financial outlook. We look forward to working with the Luvo team on transitioning Zimed PF operations. Aequus will be actively seeking opportunities to use the remaining company in strategic partnerships or to pursue other future endeavours," said Doug Janzen, chief executive officer of Aequus.

Under the terms of the agreement, Luvo will pay Aequus a lump sum payment of $400,000 at the closing of the transaction and a continuing royalty of 6 per cent on gross profit attributable to the sale of Zimed PF (less certain costs and fees) until July 29, 2029.

Until closing, Luvo will be responsible for managing distribution and commercialization efforts of Zimed PF. If existing inventory is not depleted by closing, Luvo will purchase the outstanding inventory.

The transaction is expected to close in fourth quarter 2025 upon the transfer of the drug identification number and is subject to certain closing conditions, including TSX Venture Exchange and shareholder approval. Aequus expects to call a special meeting of shareholders to be held in third quarter 2025 for approval of the transaction. There is no guarantee that the transaction will close on the terms set forth herein or at all. If, following closing of the transaction, a future strategic partnership or other transaction is not available, Aequus may pursue other alternatives including a potential windup of operations.

About Aequus Pharmaceuticals Inc.

Aequus is a specialty pharmaceutical company with a focus on commercializing value-added products in specialty therapeutic areas in the Canadian market.

We seek Safe Harbor.