Mr. Philippe Deschamps reports

CHITOGENX REPORTS THIRD QUARTER 2024 RESULTS

Chitogenx Inc. has released its financial results and highlights for the third quarter of fiscal year 2024 ended on Oct. 31, 2023.

Highlights:

• Launch of new skin repair development program targeting $19-billion in unmet medical needs;
• Successful demonstration of protection from joint degeneration and osteoarthritis after meniscal repair surgery in Ortho-R large-animal study;
• Conclusion of enrolment of phase I/II clinical trial for rotator cuff tear repair;
• Received notice of allowance for key patent in the United States and Canada;
• Reduced operating losses by 73 per cent during year-to-date fiscal 2024 compared with prior year;
• Closed a $640,000 private placement and improved working capital since fiscal 2023 by $3.6-million.

"We launched a highly promising skin repair development program targeting $19-billion in unmet medical needs. This follows several important development milestones in the orthopedic field, with the completion of enrolment in our phase I/II rotator cuff repair trial as well as demonstrated protection against osteoarthritis in a pivotal large-animal meniscus study. The company is now prioritizing development programs with faster regulatory pathway in key markets such as the U.S. The unique characteristics of our proprietary chitosan-based polymer are especially well suited to help address current technological limitations in the skin repair market, for example," said Philippe Deschamps, president and chief executive officer. "Leveraging our Polytechnique partnership and non-dilutive research grants will help us pursue and secure strategic development partnership agreements going forward without having to commit material financial resources," continued Mr. Deschamps.

Commenting on the third quarter 2024 results, Luc Mainville, senior vice-president and chief financial officer of Chitogenx, said; "During our third quarter 2024, we continued to improve our financial situation by reducing our working capital deficit by 53 per cent and our operating losses by 73 per cent compared to last year. We were able to attract additional capital and leverage our R&D [research and development] grants to support our R&D efforts while reaching important milestones that will help our ability to fund the company going forward."

Third quarter 2024 corporate highlights:

• In September, 2023, the company concluded subject enrolment at 20 in its U.S. phase I/II rotator cuff tear repair clinical trial. All study activities will be completed by June, 2024, as per clinical trial protocol following completion of the clinical follow-up and safety analysis for the 20 recruited subjects.
• In September, 2023, the corporation closed the third tranche of its non-brokered private placement offering of units. The third tranche consisted of gross cash proceeds of $390,000 and $250,000 in debt conversion from holders of convertible debentures that matured on May 1, 2023. The corporation issued 4,255,138 units at a price of 15 cents per unit for a total consideration of $640,000.
• In September, 2023, the company received a notice of allowance for a key patent in the United States and Canada. The patents make the chitosan-based biopolymer scaffold proprietary without the need for it to be combined with plasma-rich platelets or other blood products (as was previously the case).
• In August, 2023, the company announced the voting results from its annual general meeting of shareholders held through video conference on July 19, 2023. The following seven nominees were elected as directors of the company to hold office until the next annual meeting of shareholders or until their successors are elected or appointed: Tim Cunningham, Philippe Deschamps, Pierre Laurin, Dr. Brent Norton, Patrick O'Donnell, Steve Saviuk and Howard P. Walthall. Guimond Lavallee Corp., chartered professional accountants, was also appointed as auditor of the company.

Third quarter 2024 subsequent events:

• In November, 2023, the company launched a new development program targeting significant unmet medical needs in the burn and skin repair market, currently valued at $19-billion (U.S.) and growing at greater-than-5-per-cent CAGR (compound annual growth rate) through 2032. Proof-of-concept studies have already been successfully completed and results will be the subject of news releases in the coming weeks.
• In November, 2023, the company announced that Ortho-R successfully demonstrated protection from joint degeneration after meniscal repair surgery in a large-animal study. The results demonstrated protection from knee joint degeneration and osteoarthritis development after meniscal repair surgery.
• In November, 2023, the company granted an aggregate of 3,316,667 DSUs (deferred share units) and 500,000 options to directors and officers of the company in lieu of cash compensation.
• The corporation reached an agreement to extend the repayment of $330,000 of short-term notes (capital and interest) to Feb. 1, 2025.

Third quarter 2024 financial statements and MD&A (management discussion and analysis)

Chitogenx's financial statements and MD&A for the three-month and nine-month periods ended Oct. 31, 2023, is available on SEDAR+.

About Chitogenx Inc.

Chitogenx (formally Ortho Regenerative Technologies Inc.) is a clinical-stage regenerative medicine company dedicated to the development of novel therapeutic tissue repair technologies to improve tissue healing. The company is committed to the clinical development of its proprietary Restore technology platform, a muco-adhesive chitosan-based biopolymer matrix, specifically designed to deliver biologics such as platelet-rich plasma (PRP) or bone marrow aspirate concentrate (BMAC) to enhance healing in various regenerative medicine applications.

Other formulations are being developed to leverage the technology's performance characteristics such as tissue adhesion, pliability and ability to deliver biologics or therapeutics to various tissues damaged by trauma or disease.

We seek Safe Harbor.