Mr. Gene McConnell reports

SPOTLITE360 ANNOUNCES REDUCTION IN DEBT, STOCK OPTION GRANT AND GO TO MARKET STRATEGY

Spotlite360 IOT Solutions Inc. has provided an update on a reduction in outstanding debt, the cancellation of certain previously granted stock options and the issuance of additional incentive stock options.

Over the past three quarters, the company has focused its efforts on the delivery of SaaS-based (software as a service), IoT-enabled (Internet of Things) supply chain tracing, tracking and sustainability solutions within its target industries. It has also worked diligently to reduce its outstanding operating expenses and accrued liabilities as it positions itself for growth within 2024. Since the beginning of this quarter, the company has successfully reduced its liabilities from more than $1-million to less than $250,000. Over the subsequent quarters, it is the company's objective to further reduce liabilities with incremental revenue that it anticipates generating through sales pipeline development and resulting customer contracts.

The company has cancelled a total of 7.5 million shares, stock options and restricted share units issued previously and has granted, effective Feb. 1, 2024, an aggregate of 6.5 million stock options to certain management, members of the board of directors, advisers and key employees in accordance with the company's stock option plan. Each option is exercisable for a period of 10 years for one common share in the capital of the company at a price of seven cents per share. This is a normal-course grant that comprises part of the long-term compensation and retention incentives program provided by the company. The options will vest over a 12-month period, with 20 per cent of each grant vesting immediately and the remaining options vesting in equal tranches of 20 per cent every three-month period thereafter.

The recent pandemic negatively impacted companies, large and small, around the globe. It increased awareness regarding the importance of supply chain visibility and chain of custody across all industries. Major enterprises are required to invest in technologies to gain better visibility and to remain competitive in today's global supply chain environment. To better address this industry opportunity, the company has shifted its go-to-market strategy from lengthy direct sales to better leverage of its strong partner network. The company, with its strengths and experience in the delivery of proven IoT-enabled hardware, supply chain solutions and related services will now bundle these total capabilities as a unique offering that can be delivered to large enterprises through outsourcing relationships with the company's key partners. This will help the partners expand their revenue opportunities within their core customers through the delivery of new IoT-enabled supply chain tracing and tracking solutions developed and delivered by Spotlite360. The company will be selling into its partners' existing customer base and facilitating shorter sales cycles and larger potential revenue opportunities while minimizing the risk of significant hardware expenses and hosting fees. As these outsourcing opportunities materialize, the company anticipates that it will be able to announce engagements with new clients in the near future.

About Spotlite360 IOT Solutions Inc.

Spotlite360 provides a fully integrated SaaS-based enterprise tracing, tracking and collaboration solution that companies trust to achieve more sustainable and better performing supply chains. Spotlite360's solution is built on a scalable and fully customizable platform that leverages a broad array of RFID (radio-frequency identification), IoT (Internet of Things) and sensor technologies to provide item level visibility, proof of origin, authenticity and chain of custody to its customers in pharmaceutical, health care and agriculture. Companies across all industries are needing to invest in more resilient, adaptable and collaborative supply chains in order to remain competitive. Current demand by consumers for proof of ESG (environmental, social and governance), pressure across all industries to become more sustainable, new regulatory and legal requirements, and the need for companies to become more efficient are some of the factors contributing to demand for supply chain solutions. Spotlite360 will leverage its proven supply chain tracing and tracking solutions to meet this demand and transform logistics workflows for enterprise clients in its target markets.

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