Mr. Cameron Groome reports

MICROBIX ANNOUNCES ISSUANCE OF STOCK OPTIONS

Microbix Biosystems Inc. has issued stock options under its shareholder-approved 2018 stock option plan, as part of its compensation programs to incentivize and retain its board of directors, executives and managers.

Details of the option issuance

In consultation with management, Microbix's board of directors has approved the issuance of 2,795,000 options in accordance with the terms of the stock option plan. The approved options are exercisable at a price of 40 cents per share, as determined by the closing price of the Toronto Stock Exchange on Feb. 22, 2024. Each option will vest and be exercisable after three years and have a total life of five years. The stock option grants form part of the total remuneration package for the recipients and are subject to TSX approval.

Management discussion

Microbix management believes that stock options are an important tool to incentivize and retain senior personnel, particularly for smaller, publicly listed companies. In February, 2019, Microbix announced its intention to broadly use its stock option plan once per year -- following the issuance of its Q1 results.

The options now issued are being allocated across 35 individuals that comprise the more senior tiers of Microbix's approximately 110 employees, inclusive of its independent directors. The quarterly expense incurred as a result of this option award is estimated to be $52,000, and will represent approximately 2 per cent of total company compensation costs. The potentially dilutive impact of this option issuance may be up to 2 per cent of the issued and outstanding shares of Microbix, offset in part by normal course issuer bid (NCIB) share repurchases that have totalled approximately 600,000 shares since the initiation of the most recent NCIB in December, 2023.

About the Microbix stock option plan

Details of the stock option plan are available on Microbix's website, via SEDAR+ and are provided as an appendix to the current management information circular. The stock option plan is a rolling plan that permits issuance of options representing up to 10 per cent of Microbix's issued and outstanding common shares. Prior to the current issuance, a total of 10,419,000 options had been issued and are outstanding, with an average exercise price of 46 cents and average remaining life of 2.6 years. Following the current issuance, a total of 13,214,000 options will be outstanding, comprising approximately 96 per cent of the current plan availability. The plan is administered under the supervision of the board of Microbix or the human resources, compensation and governance committee of the board.

About Microbix Biosystems Inc.

Microbix Biosystems creates proprietary biological products for human health, with over 100 skilled employees and annualized sales targeting $2-million per month. It makes a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 and 13485 accredited, U.S. Food and Drug Administration registered, Australian Therapeutic Good Administration registered registered, and Health Canada establishment licensed, and provides CE marked products.

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