Dr. Ryan Mitchell reports

SATELLOS BIOSCIENCE ANNOUNCES RESULTS FROM ITS ANNUAL GENERAL MEETING OF SHAREHOLDERS AND ADOPTION OF AMENDMENTS TO STOCK OPTION PLAN

Satellos Bioscience Inc. has released the results of its annual general meeting of shareholders held virtually on June 29, 2023, as well as the adoption of amendments to the company's stock option plan.

A total of 34,607,323 common shares were voted in connection with the meeting, representing approximately 30.68 per cent of the issued and outstanding common shares of the company.

Shareholders approved fixing the number of directors of the company at eight, and each of the eight nominees listed in the management information circular of the company May 29, 2023, namely, Frank Gleeson, Dr. Rima Al-awar, Brian Bloom, William Jarosz, Geoff MacKay, Dr. William McVicar, Adam Mostafa and Franklin M. Berger, were elected as a director of Satellos for the ensuing year, or until his or her successor is elected or appointed.

In addition, Satellos reports that an ordinary resolution approving the appointment of MNP LLP as the company's auditor for the ensuing year and to authorize the directors to fix the auditor's remuneration was passed at the meeting.

Further, an ordinary resolution of disinterested shareholders of the company was passed approving the amendment and restatement of the company's stock option plan in order to change the stock option plan from a rolling 10 per cent plan to a fixed plan, pursuant to which the aggregate number of common shares to be issued thereunder will not exceed 18.3 million common shares (subject to the approval of the TSX Venture Exchange). This number of common shares represents approximately 12 per cent of the sum of (i) the number of common shares issuable pursuant to the exercise of prefunded warrants issued in the company's May, 2023, prospectus offering and (ii) the number of issued and outstanding common shares as of the date of the circular. Such number of common shares also represents approximately 16 per cent of the issued and outstanding common shares of the company (excluding the prefunded warrants) as of the date of the circular.

The amendment and restatement of the company's stock option plan has also been adopted by the company's board of directors. Pursuant to the amendment and restatement of the stock option plan, the board of directors of the company may, from time to time, grant options to directors, officers, employees and consultants of the company. The amendment and restatement of the company's stock option plan remains subject to the approval of the TSX Venture Exchange. Options granted pursuant to the amendment and restatement of the company's stock option plan may not be exercised until TSX-V approval has been received.

About Satellos Bioscience Inc.

Satellos is a publicly traded biotechnology company dedicated to developing life-improving medicines to treat degenerative muscle diseases. Satellos has incorporated breakthrough research in muscle stem cell polarity into a proprietary discovery platform, called MyoReGenX, to identify degenerative muscle diseases where deficits in this process affect muscle regeneration and are amenable to therapeutic intervention. With this platform, Satellos is building a pipeline of novel therapeutics to correct muscle stem cell polarity and promote the body's innate muscle repair and regeneration process. The company's lead program is an oral, small-molecule drug candidate in development as a disease-modifying treatment for Duchenne muscular dystrophy. Satellos is headquartered in Toronto, Ont.

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