Mr. Craig Leon reports

MYNDTEC INC. COMPLETES THIRD TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Myndtec Inc. closed today the third tranche of its non-brokered private placement, previously announced on Oct. 13, 2023. The third tranche consists of 179,080 units of the company at a price of 75 cents per unit for aggregate gross proceeds to the company of $134,310. The second tranche of the private placement of 177,425 units for aggregate gross proceeds to the company of $133,068.75 closed on Dec. 20, 2023. The first tranche of the private placement of 184,280 units for aggregate gross proceeds to the company of $138,210 closed on Nov. 3, 2023. The cumulative amount raised under the first, second and third tranches is $405,588.75.

Each unit comprised one common share in the capital of the company and one common share purchase warrant, whereby each warrant is exercisable to acquire one common share at an exercise price of 90 cents per warrant share for a period of 36 months following the closing date of the third tranche.

The company intends to use the net proceeds of the third tranche for general corporate purposes, including working capital, corporate development, and sales and marketing.

In Canada, the units (and the underlying common shares, warrants and warrant shares) are subject to a statutory hold period of four months from the closing date of the third tranche. In the United States, the units (and the underlying common shares, warrants and warrant shares) have not and will not be registered under the U.S. Securities Act, and are subject to restrictions on transfer that prevent any transfer or resale absent registration or an applicable exemption from the registration requirements under United States federal and state securities laws. The third tranche remains subject to the final acceptance by the Canadian Securities Exchange.

The third tranche constituted a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as a certain insider of the company participated in the third tranche and acquired, directly or indirectly, under the first, second and third tranches, an aggregate of 540,785 units pursuant to the offering. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the first, second and third tranches by the insider does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the third tranche, which the company deems reasonable in the circumstances in order to complete the third tranche in an expeditious manner.

About Myndtec Inc.

Myndtec is a Canadian medical technology company dedicated to the development and commercialization of innovative products that improve function, maximize independence and enhance the quality of life for individuals who have suffered injury to the central nervous system as a result of stroke, spinal cord injury and certain traumatic brain injuries. The company develops non-invasive neurological and nervous system electrical stimulation therapeutics for the treatment of neurological diseases and injury specifically targeted to markets with large, growing and global patient populations.

The company's flagship product, MyndMove, is a non-invasive functional electrical stimulation-based intervention. MyndMove uses neuroplasticity mechanisms to stimulate development of new neural efferent and afferent pathways allowing patients to re-establish voluntary movement and improve independence in their activities of daily living. The MyndMove system offers trained therapists the ability to assist individuals affected with paralysis to improve voluntary control of their limbs. The MyndMove therapy system offers a broad spectrum of sophisticated functional electrical stimulation software protocols that therapists customize to patient needs to enable meaningful controlled movements via proprietary stimulation technology.

We seek Safe Harbor.