Dr. Deborah Rathjen reports

BIOASIS PROVIDES CORPORATE UPDATE AND ANNOUNCES SUSPENSION OF OPERATIONS

Bioasis Technologies Inc. today provided an update on its financial condition and operations.

As previously disclosed, the termination of the company's proposed merger with Midatech Pharma PLC (now Biodexa Pharmaceuticals PLC) (Biodexa) in January, 2023, left the company with limited cash and significant liabilities, including a $350,000 bridge loan from Lind Global Macro Fund LP, a $500,000 (U.S.) bridge loan from Biodexa and approximately $3.3-million owing to Lind under the 2021 convertible security funding agreement between the company. All of these debts are secured by liens over all of the company's assets (with Lind holding first-ranking security) and the bridge loans (including accrued and unpaid interest) mature on June 30, 2023. Bioasis is currently, or will be, in default of its obligations to Lind and Biodexa and they are, or will be, entitled to take actions in accordance with their loan and security documents with Bioasis to enforce their rights as secured lenders.

Since the termination of the merger, Bioasis has pursued numerous strategic alternatives to preserve and enhance shareholder value, including: mergers; the sale of all or portions of the company or its assets; partnerships' licensing and joint venture transactions; and third party financings. In pursuing these transactions, Bioasis was assisted by third party advisers, including Shadow Lake Group and Maxim Group. Since the end of January, Bioasis and its advisers have contacted numerous potential counterparties, several of whom entered into non-disclosure agreements with the company and engaged in active discussions with the company regarding potential transactions.

The company has recently signed a non-binding term sheet with Swiss Biotech Advisors (SBA), a group consisting of certain of the vendors of the EGF therapy platform that Bioasis acquired in June, 2022, for an exclusive worldwide licence by Bioasis to SBA of the EGF assets along with the right to apply the company's xB3 platform to the EGF assets. In return, Bioasis would receive certain milestone payments, a 5-per-cent royalty on net sales from products developed based on the licensed technology, along with a share of any sublicensing revenue generated by SBA from the licensed technology. The transaction is subject to certain conditions, including the execution of a definitive license agreement.

The current economic environment and market conditions for small-cap development stage biopharmaceutical companies continue to be very challenging. Although the company is still pursuing certain potential strategic alternatives, other than the potential transaction with SBA (which is not expected to generate any cash flow for the company in the short term) the company does not currently have any actionable alternatives, is almost out of cash and is no longer in a position to continue funding its operations.

As a result, the board of directors has made the difficult decision to suspend all of Bioasis's operations.

Given the company's limited cash resources, it has been unable to pay its auditors to produce audited financial statements for its financial year ended Feb. 28, 2022. As a result, the company will not be in a position to file its audited annual financial statements and related management's discussion and analysis for that financial year prior to the June 28, 2023, deadline for doing so. The company anticipates that this will result in the British Columbia Securities Commission issuing a cease trade order in respect of its shares and a suspension of trading of its shares on the TSX Venture Exchange.

Finally, the company announces that Chiesi Farmaceutici S.p.A. has advised the company that, Chiesi does not intend to continue to pursue the potential development of xB3 and will be terminating the non-exclusive research collaboration and licensing agreement between the company and Chiesi.

About Bioasis Technologies Inc.

Bioasis is a multiasset rare and orphan disease biopharmaceutical company developing clinical-stage programs based on epidermal growth factor and the xB3 platform, a proprietary technology for the delivery of therapeutics across the blood-brain barrier and the treatment of CNS (central nervous system) disorders in areas of high unmet medical need. The delivery of therapeutics across the blood-brain barrier represents the final frontier in treating neurological disorders. The in-house development programs at Bioasis are designed to develop symptomatic and disease-modifying treatments for brain-related diseases and disorders.

We seek Safe Harbor.