Mr. Jim Hutchens reports

IMAGIN MEDICAL PROVIDES PRODUCT AND FINANCIAL UPDATE

Imagin Medical Inc. has provided additional information on the enCage prostate cancer program and the i/Blue bladder cancer program as well as the company's continuing capital needs.

Products

enCage: In prostate cancer therapy, the big challenge is not removing the cancer. The big challenges are erectile dysfunction, urinary incontinence and potential other damage postprocedure. These dangers have been known to cause some men to hold off on treatment until it is too late. Imagin believes that, once on the market, enCage will provide protection superior to anything on the market. Management is pleased to report that the 42-month results of a clinical trial using an early version were promising.

i/Blue: i/Blue is an enabling technology for blue-light cystoscopy (BLC). BLC has been proven to reduce bladder cancer recurrence rates by detecting 33 per cent more tumours than current modalities. Nevertheless, BLC is used in less than 10 per cent of surgical procedures due to the very high cost of entry and a clumsy surgical technique. i/Blue is designed to be the only technology that addresses these clinical and cost issues effectively. Unfortunately, due to the company's capital situation, activities with respect to i/Blue have been postponed.

Capital needs

In August, 2022, the company raised $750,000, with the expectation of receiving another $2.5-million from an investor. Unfortunately, due to the decline in overall investment, the additional $2.5-million has not become available to the company. Even though it was a difficult fundraising period for prerevenue medical device companies, Imagin was able to raise an additional $230,000. The company is attempting to raise additional bridge capital until the company is able to complete an $8.5-million financing. Pending the raise of bridge financing, management has made a decision to shut down virtually all operations and focus its full efforts on raising additional capital. Management continues to believe strongly in the products, and Jim Hutchens, chief executive officer, will lead the effort to raise capital.

Presently, the company does not have sufficient funds to pay for the audit of its annual financial statements. Failure to file such statements on a timely basis will result in a cease trade order being issued against the company.

John Vacha, chief financial officer

Mr. Vacha has left the company, and the company wishes him the best of luck in his future endeavours.