Mr. Greg Reid reports

KRAKEN ROBOTICS INC. ANNOUNCES $17.5 MILLION BOUGHT DEAL PUBLIC OFFERING

Kraken Robotics Inc. has entered into an agreement with a syndicate of investment dealers led by Cormark Securities Inc., pursuant to which the underwriters have agreed to purchase 18,422,000 common shares from the treasury of the company, at a price of 95 cents per common share and offer them to the public by way of short form prospectus for total gross proceeds of $17,500,900.

The company has granted the underwriters an option to purchase up to an additional 15 per cent of the common shares of the offering on the same terms exercisable at any time up to 30 days following the closing of the offering for market stabilization purposes and to cover overallotments, if any.

Kraken expects to use the net proceeds to facilitate its long-term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated working capital for expansion of sole-source/single-award programs and high-probability pipeline opportunities, further strengthen the company's balance sheet in anticipation of coming customer and partners decisions and source selection on additional large, new program and contract opportunities, and for general corporate purposes.

Closing of the offering is expected to occur on or about May 16, 2024, and is subject to regulatory approval, including that of the TSX Venture Exchange.

The common shares to be issued under the offering will be offered by way of a short form prospectus in each of the provinces of Canada, except Quebec, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable state securities laws and certain other jurisdictions outside of Canada and the United States.

About Kraken Robotics Inc.

Kraken Robotics is a marine technology company providing complex subsea sensors, batteries and robotic systems. The company's high-resolution 3-D acoustic imaging solutions and services enable clients to overcome the challenges in the oceans -- safely, efficiently and sustainably. Kraken Robotics is headquartered in Canada and has offices in North America, South America and Europe. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter.

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