Dr. Rahul Kushwah reports

DEEPSPATIAL CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Deepspatial Inc. has closed the first trance of its previously announced private placement. The company issued 11.7 million units at a price of five cents per unit to investors for gross proceeds of $585,000. Each unit consists of one common share of the company and one common share purchase warrant, whereby each warrant entitles the holder to purchase one additional common share for a period of two years from closing at an exercise price of 10 cents per share. If, following four months and a day after the closing date, the volume-weighted average price of the common shares on the Canadian Securities Exchange is equal to or greater than 20 cents for any 10 consecutive trading days, the company may, upon providing written notice to the holders of warrants, accelerate the expiry date of the warrants to the date that is 30 days following the date of such written notice.

A finder's fee of $58,500 was settled by the issuance of units resulting in the issuance of an additional 1.17 million units.

The company expects to close a second tranche of the private placement in the next couple of weeks.

Net proceeds will be used for general operations (working capital), including business development and technology upgrades. All securities issued in connection with the private placement are subject to a statutory hold period expiring four months and one day from the date of issuance of the securities.

Shares for services

The company also announces that in satisfaction of services rendered to the company pursuant to a consultant agreement dated Aug. 3, 2023, it has issued 350,000 common shares and 150,000 warrants, with an exercise price of 12 cents per share for two years, to an arm's-length consultant. The shares and warrants will be subject to a hold period expiring Jan. 14, 2024.

About Deepspatial Inc.

Deepspatial is an outcome-based artificial intelligence company, enabling organizations to enhance their decision-making capabilities by leveraging the power of data and AI. From finding the most efficient supply chain routes to knowing where to develop next, Deepspatial's artificial-intelligence-driven platform enables its clients to visualize what is going on, predict what is coming, analyze data and optimize processes to make smarter decisions for a better future.

We seek Safe Harbor.