Mr. James Van Staveren reports

CYBEATS ANNOUNCES FIRST TRANCHE CLOSING FOR GROSS PROCEEDS OF OVER $1.1 MILLION

Cybeats Technologies Corp., further to its press release of Feb. 19, 2024, has closed the first tranche of its previously announced non-brokered private placement through the issuance of 7,635,034 units of the company at a price of 15 cents per unit for gross proceeds of $1,145,255.

Each unit consists of one common share in the capital of the company and one-half of one whole common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share at a price of 20 cents per common share until the date that is 18 months from the date of issuance.

Gross proceeds raised from the offering will be used for working capital and general corporate purposes. The securities issued upon closing of the offering will be subject to a hold period of four months plus a day from the date of closing, pursuant to applicable securities laws. The closing of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange.

In connection with the offering, the company paid certain eligible persons: (i) a cash commission in the aggregate of $1,500; and (ii) an aggregate of 190,170 finder warrants. Each finder warrant is exercisable at a price of 20 cents per common share until Sept. 8, 2025. In addition, a finder was issued 113,500 compensation shares representing a cash commission in the amount of $17,025.

In addition, further to the press release dated Feb. 19, 2024, the company announces that it has increased the total size of the offering to aggregate gross proceeds of up to $2-million through the issuance of up to 13,333,333 units due to investor demand.

The offering constituted a related party transaction as defined in Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions (MI 61-101), as certain insiders of the company acquired 1,366,700 units. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by insider does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the offering in an expeditious manner.

About Cybeats Technologies Corp.

Cybeats is a cybersecurity company providing SBOM (software bill of materials) management and software supply chain intelligence technology, helping organizations to manage risk, meet compliance requirements and secure their software from procurement to development and operation. The platform gives customers comprehensive visibility and transparency into their software supply chain, enabling them to improve operational efficiency and increase revenue. Cybeats -- software made certain.

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