Mr. Trevor Burns reports

CARDIOL THERAPEUTICS RECEIVES NASDAQ DEFICIENCY NOTICE REGARDING MINIMUM BID PRICE REQUIREMENT

On Oct. 19, 2023, Cardiol Therapeutics Inc. received a notice from the Nasdaq Stock Market LLC, stating that the company is not in compliance with the minimum bid price requirement of $1.00 (U.S.) per share under the Nasdaq Listing Rule 5550(a)(2) based upon the closing bid price of the company's Class A common shares for the 30 consecutive business days prior to the date of the notice.

The notice has no immediate effect on the listing or trading of the common shares on Nasdaq, and the company's operations are not affected by the receipt of the notice. Under Nasdaq Listing Rule 5810(c)(3)(A), the company has 180 calendar days from the date of the notice, or until April 16, 2024, to regain compliance with the minimum bid requirement, during which time the common shares will continue to trade on Nasdaq. If at any time before April 16, 2024, the bid price of the common shares closes at or above $1.00 (U.S.) per share for a minimum of 10 consecutive business days, the company will regain compliance with the minimum bid requirement. If the company does not regain compliance with the minimum bid requirement by April 16, 2024, the company may be eligible, upon satisfaction of certain Nasdaq listing requirements, for an additional period of 180 calendar days that would further extend the period of time to regain compliance to Oct. 14, 2024, or the common shares may be subject to delisting from Nasdaq.

About Cardiol Therapeutics Inc.

Cardiol Therapeutics is a clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease. The company's lead small molecule drug candidate, CardiolRx (cannabidiol) oral solution, is pharmaceutically manufactured and in clinical development for use in the treatment of heart disease. It is recognized that cannabidiol inhibits activation of the inflammasome pathway, an intracellular process known to play an important role in the development and progression of inflammation and fibrosis associated with myocarditis, pericarditis and heart failure.

Cardiol has received investigational new drug application authorization from the U.S. Food and Drug Administration to conduct clinical studies to evaluate the efficacy and safety of CardiolRx in two diseases affecting the heart: (i) a phase 2 multicentre open-label pilot study in recurrent pericarditis (the MAvERIC-pilot study -- NCT05494788), an inflammatory disease of the pericardium which is associated with symptoms including debilitating chest pain, shortness of breath and fatigue, and results in physical limitations, reduced quality of life, emergency department visits and hospitalizations; and (ii) a phase 2 multinational, randomized, double-blind, placebo-controlled trial (the Archer trial -- NCT05180240) in acute myocarditis, an important cause of acute and fulminant heart failure in young adults, and a leading cause of sudden cardiac death in people less than 35 years of age.

Cardiol is also developing a novel subcutaneously administered drug formulation of cannabidiol intended for use in heart failure -- a leading cause of death and hospitalization in the developed world, with associated health care costs in the United States exceeding $30-billion annually.

We seek Safe Harbor.