Mr. Marc Edwards reports

KANE BIOTECH ANNOUNCES IMPROVED THIRD QUARTER 2023 FINANCIAL RESULTS

Kane Biotech Inc. has released its third quarter 2023 financial results.

Third quarter financial highlights:

• Revenue from product and services for the three months ended Sept. 30, 2023, was $548,785, an increase of 29 per cent from $425,671 in the three months ended Sept. 30, 2022. This increase is due mainly to higher Stem Animal Health on-line and pet retail sales in the current period.
• Royalty and licence revenue for the three months ended Sept. 30, 2023, was $169,067, an increase of 16 per cent compared with $146,015 in the three months ended Sept. 30, 2022. This increase is due mainly to incremental licence revenue in the current period associated with the Skout's Honor licence and distribution agreement, which was signed earlier in the year.
• Total revenue for the three months ended Sept. 30, 2023, was $717,852, an increase of 26 per cent compared with $571,686 in the three months ended Sept. 30, 2022.
• Gross profit for the third quarter of 2023 was $315,265, an increase of 17 per cent compared with $269,740 for the quarter ended Sept. 30, 2022.
• Total operating expenses for the three months ended Sept. 30, 2023, were $1,513,154, an increase of 35 per cent compared with $1,121,337 for the three months ended Sept. 30, 2022. The increase is due mainly to higher non-cash long-term incentive expense and legal expenses related to both the company's private placement offering and amendments to its credit facility recorded in the current period, as well as higher government assistance recorded in the comparative period.
• Loss for the third quarter of 2023 was ($1,197,889), an increase of 41 per cent compared with ($851,597) for the quarter ended Sept. 30, 2022.

Detailed financial information about Kane Biotech can be found in its Sept. 30, 2023, financial statements and management's discussion and analysis on SEDAR+ and the company's website.

"In the third quarter of 2023, we continued to make good progress on all fronts. This includes the scale-up manufacturing of our newly rebranded revyve anti-microbial wound gel and open communication with the [Food and Drug Administration] as we progress towards our DispersinB wound gel clinical trial. I'm also pleased with the progress we've made in relation to our strategic review of Stem Animal Health, and I look forward to reporting on the outcome of that review in the near future. I also want to thank Pivot Financial for their continued support as we work through the strategic review," said Marc Edwards, president and chief executive officer.

Recent corporate developments:

• On Nov. 16, 2023, Kane Biotech announced that Dr. John Coleman had been appointed to the board of directors of Kane Biotech, effective immediately. Dr. Coleman is an accomplished executive with over two decades of senior biotechnology expertise. He is the president and chief executive officer of Avivo Biomedical Inc., a Vancouver-based biotech firm specializing in groundbreaking technologies facilitating the conversion of blood and organs into universally accepted types, thereby significantly improving the utilization of the existing pool of donors.
• On Nov. 2, 2023, the company announced the launch of the newly rebranded revyve anti-microbial wound gel (formerly coactiv+ anti-microbial wound gel). The revyve anti-microbial wound gel is a combination of the company's patented coactiv+ technology and PHMB, paired with a non-ionic pluronic surfactant with thermogelling properties. The combination of these three components provides for a moist environment best suited for wound healing, with effective anti-microbial activity in an easy-to-use gel that is optimized for sensitive wounds.
• On Oct. 25, 2023, the company announced that it would be unveiling the new brand for its coactiv+ anti0microbial wound gel product at the Symposium on Advanced Wound Care Fall forum. Both the company and its U.S. wound gel distribution partner, ProgenaCare Global, hosted informational booths at SAWC Fall introducing the new brand and recruited practitioners to participate in clinical evaluations using the company's wound gel.
• On Sept. 12, 2023, the company announced the closing of its fully subscribed private placement offering and amendments to its credit facility with Pivot Financial I Limited Partnership. Kane Biotech issued 6.25 million units of the company at a price of eight cents per unit for aggregate gross proceeds of $500,000. Each unit is composed 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. The company and Pivot 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 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.
• On Aug. 2, 2023, the company announced that it had engaged Research Capital Corp. as Kane Biotech's exclusive financial adviser to conduct a strategic review process for its Stem Animal Health business division. Kane Biotech is considering a variety of strategic alternatives to maximize shareholder value with regard to Stem. These alternatives could include, among other things, the sale of all or part of its assets in Stem, a merger or other business combinations with another party, or any other strategic transaction.

Conference call

Kane Biotech is pleased to invite all interested parties to participate in a conference call on Tuesday, Nov. 28, 2023, at 4:30 p.m. ET, to review the financial results and discuss business developments in the period.

Participants can listen to the live webcast. A webcast of the call will be available on the company's website under news/events in the investors section of the Kane Biotech website.

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 (80 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, bluestem, silkstem, goldstem, coactiv+, coactiv+, DermaKB, DermaKB Biofilm and revyve 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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