Mr. Douglas Liu reports

MEDIFOCUS INC. ANNOUNCES PLANS TO UNDERGO BALANCE SHEET RESTRUCTURING

Medifocus Inc. has commenced restructuring proceedings by filing for creditor protection to allow the company to address the debt on its balance sheet.

On Sept. 8, 2021, Medifocus commenced the restructuring proceedings to ensure stability during the continuing COVID-19 pandemic and to position the company for sustained long-term growth. Weiss Fell Kour LLP is serving as restructuring counsel to Medifocus.

"Following a thorough financial and strategic review, we believe that it is in the best interest of Medifocus to enter into restructuring proceedings to deal with our financial obligations and restructure our balance sheet. We are deeply committed to our technology. By beginning this process, we are optimistic the restructuring will allow us to continue focusing on developing emergent and effective treatments," said Douglas Liu, the vice-president of finance of Medifocus.

Medifocus has received and is considering a proposal from its secured lender to provide debtor-in-possession (DIP) financing to finance the restructuring as well as an asset purchase agreement to acquire all of the assets of Medifocus. The asset purchase agreement will serve as a stalking horse agreement in a proposed sale process to be approved by the court. If the secured lender's proposal is agreed to by Medifocus, the DIP financing and sale process will be subject to court approval with notice to interested parties.

"We expect that these proceedings will have minimal impact on our day-to-day operations," said Mr. Liu. "We thank the many patients who rely on our treatment systems, our partners and our customers for their support during this restructuring."

The company intends to provide further updates on the restructuring process when there are significant developments.

We seek Safe Harbor.