Mr. John Ricci reports

DANAVATION(R) PROVIDES CORPORATE UPDATE HIGHLIGHTED BY PROPOSED AMENDMENTS TO CONVERTIBLE DEBENTURES, INCLUDING EXTENDED TERM

Danavation Technologies Corp. has provided a corporate update which includes financial information that collectively supports the company's go-forward strategy and execution.

During the month of September, Danavation successfully secured contracts for 11 additional installations that were announced on Sept. 20, 2023, and Sept. 11, 2023, which are expected to meaningfully contribute to revenue for fiscal 2024.

Further, the company has initiated in a process with its debenture holders to extend the term of the convertible debentures closed on Aug. 17, 2021 (see press release dated Aug. 17, 2021), to allow the company more time to repay the debentures in an effort to allow it to focus on the short-term day to day growth of the business. The key features of the proposed amendments are: (i) the maturity date being extended from Aug. 17, 2024, to Sept. 30, 2025; (ii) the conversion price being amended from 45 cents to 20 cents; (iii) the forced conversion price being reduced from 75 cents to 35 cents; and (iv) removing the 2-per-cent prepayment penalty.

The company has received written approval by more than 66 per cent of the debenture holders by way of a written resolution and the company is working with the trustee to complete the amendments shortly. The changes were proposed by the largest debenture holder who holds $2-million of the $3.85 million (52 per cent) of the principal amount of the debentures outstanding and the company is working with the trustee under the debenture indenture to implement the amendments and will seek approval of the amendments from the Canadian Securities Exchange. A further announcement related to the effective date of the amendments will be provided in due course.

"I am pleased with this start to our first fiscal quarter of 2024, as we exited September with new client contracts for installations of our Digital Smart Labels and stand to benefit from the revenue associated with them, while also announcing a proposed extension of our debentures," said John Ricci, chief executive officer of Danavation. "We view this as a strong vote of confidence in the company that, once approved, will allow us to remain entirely focused on growing clients and revenue for the next 24 months without undue pressure to repay the debenture within the next year. We greatly appreciate the support of the debenture holders as we continue to ramp up client contracts and grow the company's revenue."

About Danavation Technologies Corp.

Danavation is the only North American-founded and headquartered technology company providing Digital Smart Labels and a software platform-as-a-service (PaaS) solution that enables companies across various sectors to automate labelling, price, product and promotions in real time. The company's Digital Smart Labels enhance data accuracy and improve performance by removing high labour costs and low productivity typically associated with traditional labour-intensive workflows. The company's goal is to create a sustainable and profitable business for shareholders while advancing sound environmental, social and governance practices, including by significantly reducing paper usage. Danavation has introduced its solution to retailers across North America, including big box and boutique grocers, while also targeting new markets, including health care providers, manufacturing and logistics companies.

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