Mr. Craig Leon reports

MYNDTEC INC. ANNOUNCES INABILITY TO SECURE FINANCING, CESSATION OF OPERATIONS AND EVALUATION OF STRATEGIC ALTERNATIVES INCLUDING INSOLVENCY PROCEEDINGS

Myndtec Inc. has been unable to secure the additional financing required to continue operations. As previously disclosed, the company's operations during 2024 and 2025 were substantially financed by its principal shareholder, Jim Anderson, through his participation in successive private placement offerings. Mr. Anderson has confirmed that he will not be making any further investments in the company. The company has been unable to secure alternative sources of financing and, as a result, no longer has the liquidity required to maintain operations or meet its financial obligations as they come due.

Background

As disclosed in the company's management's discussion and analysis for the nine-month period ended Sept. 30, 2025, the company's ability to continue as a going concern was materially dependent on its ability to raise additional capital, which in turn was dependent in large part on the continued participation of Mr. Anderson, who was under no obligation to provide future financing. The MD&A further disclosed that if Mr. Anderson were to determine not to participate in future financing rounds, the company may be unable to secure alternative financing on acceptable terms or at all, which could result in the company's inability to continue operations.

As at Sept. 30, 2025, the company had cash and cash equivalents of $90,212, negative working capital of $1,272,270, and accumulated losses of $21,697,141. The company was also in default on its obligations to the Federal Economic Development Agency and its former legal counsel, totalling approximately $1,124,195. The company's auditor included an emphasis of matter paragraph regarding going concern in its auditor report on the company's Dec. 31, 2024, annual financial statements.

Despite continuing efforts to secure additional financing, including through the continuation of the company's private placement offering, and engagement with existing and potential new investors, the company has exhausted its available financing alternatives.

Evaluation of strategic alternatives including insolvency proceedings

After careful consideration of all available alternatives and in consultation with counsel, the board of directors has authorized management to consult with insolvency counsel and engage a licensed insolvency trustee to evaluate the company's options. The company is evaluating all available strategic alternatives, which may include a restructuring of the company's financial affairs through a proposal to creditors under Part III of the Bankruptcy and Insolvency Act (Canada) or a sale of some or all of the company's assets.

The company expects to provide a further update on the outcome of its discussions with the LIT and the path forward in due course. There can be no assurance that the company will be able to file a viable proposal to its creditors or that any restructuring or sale process will result in any recovery for creditors or shareholders of the company.

Operational changes

In connection with the foregoing, the company has implemented immediate cost reduction measures, including the cessation of all research and development activities, the termination or layoff of substantially all employees and consultants, and the suspension of all non-essential service provider contracts.

Trading in the company's securities

The company expects that trading in its common shares on the Canadian Securities Exchange may be halted or suspended pending further review of the company's financial condition and listing status. Shareholders and other stakeholders are cautioned that there can be no assurance as to any recovery for holders of the company's common shares.

About Myndtec Inc.

Myndtec is incorporated under the Business Corporations Act (Ontario) and is listed on the Canadian Securities Exchange under the symbol MYTC. The company developed and commercialized the MyndMove system, a patented functional electrical stimulation platform cleared by the U.S. Food and Drug Administration and licensed by Health Canada for the treatment of upper and lower body paralysis in stroke and spinal cord injury patients. The company also held exclusive licence agreements with the University of Toronto and University Health Network relating to neurostimulation and neural regeneration technologies.

We seek Safe Harbor.