Dr. Lior Shaltiel reports

NUREXONE BIOLOGIC ANNOUNCES PRECLINICAL EVIDENCE OF STRUCTURAL REPAIR IN INJURED SPINAL CORD TISSUE FOLLOWING EXOPTEN TREATMENT

Nurexone Biologic Inc. has released new preclinical imaging results providing anatomical evidence consistent with structural repair of spinal cord following treatment with ExoPTEN.

An imaging-based analysis of animals treated with ExoPTEN after a spinal cord injury showed more organized spinal cord tissue compared with untreated controls. A functional assessment of this same cohort showing that 100 per cent of animals in a higher-dose group regained motor function was published in July, 2025.

"The data from the MRI with diffusion tensor imaging indicates that the injured spinal cords showed greater structural integrity and tissue organization when treated with ExoPTEN in the animal model. Importantly, those structurally preserved spinal cords strengthen the accumulating evidence of ExoPTEN neuroprotective and regeneration-promoting activity following spinal cord injury," said Dr. Kineret Taler, head of preclinical studies.

Unmet need in spinal cord injury and evidence of spinal cord repair

Spinal cord injury is life-altering and imposes a substantial health care and economic burden. Current treatments focus on stabilizing patients but do not repair damaged tissue. ExoPTEN is designed to support nerve repair and restore function. Nurexone continues preparations for its first-in-human clinical trial of ExoPTEN, subject to regulatory approval.

MRI-DTI is an advanced imaging technique that maps the movement of water molecules in tissue, providing a detailed view of microstructural integrity beyond conventional MRI and effectively shows a spinal cord's wiring.

Two key features are used:

1. Fractional anisotropy: indicates alignment and preservation of nerve fibres; higher FA values indicate stronger structural integrity;
2. Mean diffusivity: reflects microscopic tissue architecture; lower MD values indicate healthier cellular structure and less disruption from injury.

In ExoPTEN-treated animals, FA values were higher, and MD values were lower near the injury site, suggesting more organized, structurally intact tissue.

Chief executive officer Dr. Lior Shaltiel commented, "This new analytic evidence, together with previously reported functional studies demonstrating recovered walking function in small animals, creates robust, support of the strong preclinical profile of ExoPTEN in spinal cord injury."

Private placement

The company is also pleased to announce that, subject to TSX Venture Exchange approval, it has closed a non-brokered private placement of 1,258,072 units at a price of 62 cents per unit for aggregate gross proceeds of $780,004.64. The company intends to use the proceeds of the offering for working capital purposes.

Chief financial officer Eran Ovadya added: "This limited financing round provides us with additional resources to support our ongoing operations and drive the continued development of ExoPTEN. Notably, the round included participation from existing investors who expressed their confidence in Nurexone by increasing their holdings. As we advance toward our first-in-human studies, we remain committed to prudent financial management and to creating long-term value for our stakeholders."

Terms of the offering

Each unit consisted of: (i) one common share in the capital of the company; and (ii) one-half of one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of 80 cents per common share for a period of 36 months, subject to acceleration. If the daily volume-weighted average trading price of the common shares on the TSX Venture Exchange for any period of 20 consecutive trading days equals or exceeds $1.70, the company may, upon providing written notice to the holders of the warrants, accelerate the expiry date of the warrants to the date that is 45 days following the date of the acceleration notice. If the warrants are not exercised by the accelerated expiry date, the warrants will expire and be of no further force or effect.

Closing of the offering is subject to receipt of all necessary regulatory approvals, including the TSX-V, and all securities issued under the offering are subject to a statutory hold period of four months and one day from the closing of the offering and applicable U.S. legends.

About Nurexone Biologic Inc.

Nurexone is a TSX Venture Exchange, OTCQB and Frankfurt-listed biotech company focused on developing regenerative exosome-based therapies for central nervous system injuries. Its lead product, ExoPTEN, has demonstrated strong preclinical data supporting clinical potential in treating acute spinal cord and optic nerve injury, both multibillion-dollar markets. Regulatory milestones, including obtaining the orphan drug designation, facilitate the road map toward clinical trials in the United States and Europe. Commercially, the company is expected to offer solutions to companies interested in quality exosomes and minimally invasive targeted delivery systems for other indications. Nurexone has established Exo-Top Inc., a U.S. subsidiary, to anchor its North American activity and growth strategy.

We seek Safe Harbor.