Mr. Marc Edwards reports

KANE BIOTECH ANNOUNCES CLOSING OF FULLY SUBSCRIBED PRIVATE PLACEMENT OFFERING AND AMENDMENTS TO ITS CREDIT FACILITY

On Sept. 11, 2023, Kane Biotech Inc. has fully subscribed and closed its previously announced non-brokered private placement offering of units of the company. Kane issued 6,250,000 units at a price of eight cents per unit for aggregate gross proceeds of $500,000. Each unit consists of one common share of the company and one-half of one share purchase warrant. Each full warrant entitles the holder thereof to purchase one additional share of the company for a period of 18 months at an exercise price of 10 cents per share.

After a period of four months from the closing date of the offering, in the event that the shares traded on the TSX Venture Exchange have a closing price at or exceeding 20 cents per share for five consecutive trading days, the company reserves the right to call the warrants, at their exercise price of 10 cents per warrant. If the company wishes to call the warrants, the company must provide written notice to the holders of the warrants that it is calling the warrants. Investors will have 30 days from the date of such notice to exercise the warrants and, in the event that any warrants are not exercised, such warrants shall be cancelled. Holders of warrants shall be restricted from exercising any number of warrants that will cause the holder to own such number of shares that will equal or exceed 20 per cent of the then issued and outstanding shares.

"The closing of this private placement, during a period of very challenging external capital market conditions, comes at an opportune time as we proceed toward three major milestones: (1) the commercial launch of our coactiv+TM Antimicrobial Wound Gel cleared by the U.S. Food and Drug Administration in May, 2023, (2) the kickoff of our U.S. Department of Defense funded phase 1 clinical trial for our DispersinB wound gel and (3) The strategic review of our STEM Animal Health subsidiary," said Ray Dupuis, chief financial officer.

President and chief executive officer Marc Edwards and chief financial officer Raymond Dupuis participated in the offering. The insider subscription is deemed to be a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is exempt from the formal valuation and minority approval requirements for related party transactions pursuant to Subsection 5.5(a) and Subsection 5.7(a) of MI 61-101, respectively.

The net proceeds of the offering will be used for working capital and general corporate purposes.

All securities issued in connection with the offering are subject to a hold period of four months and one day in Canada.

The closing of the offering remains subject to the final approval of the TSX Venture Exchange.

The company also announces that on Sept. 11, 2023, the company and Pivot Financial I Ltd. Partnership entered into a definitive agreement to amend the terms of the company's amended and restated credit agreement between Pivot and the company dated Aug. 31, 2021, as amended, by, among other things, increasing the size of the credit facility from $5-million to $6-million and extending the maturity date of the credit facility from Aug. 31, 2023, to Nov. 30, 2023. The amended credit facility has an interest rate of 15 per cent per annum.

Under the terms of the amended credit facility, Pivot and the third party guarantor of $1-million of the amended credit facility (the guarantor), each received 2.5 million compensation warrants. Subject to the call right, each compensation warrant is exercisable into one share for a period of 12 months at an exercise price of 10 cents per share. In accordance with the policies of the TSX-V, the 2.5 million compensation warrants previously issued to the guarantor on April 20, 2023, will expire on the closing date of the amended credit facility and will be of no further force or effect.

"I'd like to once again thank Pivot for their ongoing support," added Mr. Dupuis.

The closing of the amended credit facility remains subject to the final approval of the TSX Venture Exchange.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. The company has a portfolio of biotechnologies, intellectual property (74 patents and patents pending, trade secrets, and trademarks) and products developed by the company's own biofilm research expertise and acquired from leading research institutions. StrixNB, DispersinB, Aledex, bluestem, silkstem, goldstem, coactiv+, DermaKB and DermaKB Biofilm are trademarks of Kane Biotech. The company is listed on the TSX Venture Exchange under the symbol KNE and on the OTCQB Venture Market under the symbol KNBIF.

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