Mr. Stephen Kilmer reports

PROFOUND MEDICAL ANNOUNCES PRICING OF US$20 MILLION PUBLIC OFFERING OF COMMON SHARES

Profound Medical Corp. has priced its previously announced underwritten public offering of 2,666,667 common shares at a price to the public of $7.50 (U.S.) per common share, led by health-care-focused institutional investors. Gross proceeds to the company from the offering are expected to be approximately $20-million (U.S.), prior to deducting underwriting discounts and commissions and other expenses related to the offering, assuming no exercise of the underwriter's overallotment option.

Titan Partners Group, a division of American Capital Partners, is acting as the sole bookrunner for the offering.

The offering is expected to close on or about Jan. 2, 2024. Closing of the offering will be subject to a number of customary conditions including, but not limited to, the listing of the common shares on the Toronto Stock Exchange and any required approvals of that exchange, as well as notice of the listing of the common shares on Nasdaq in accordance with the rules of that exchange, and there can be no assurance as to whether or when the offering may be completed.

The net proceeds of the offering are expected to be used: (i) to finance the continued commercialization of the Tulsa-Pro system in the United States; (ii) to finance the continued development and commercialization of the Tulsa-Pro system and the Sonalleve system globally; and (iii) for working capital and general corporate purposes.

The company intends to file a final prospectus supplement to its short form base shelf prospectus dated March 23, 2022, in the United States and Canada relating to the proposed offering.

The final supplement will be filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. The final supplement will also be filed with the U.S. Securities and Exchange Commission (the SEC) as part of the company's effective registration statement on Form F-10 (file No. 333-263248), as amended, previously filed under the multijurisdictional disclosure system adopted by the securities regulatory authorities in Canada and in the United States. Copies of the final supplement and the base shelf prospectus will be available on SEDAR+ and on EDGAR, and a copy of the registration statement is available on EDGAR. Copies of the final supplement, the base shelf prospectus and the registration statement may also be obtained in the United States by contacting Titan Partners Group at 4 World Trade Center, 29th floor, New York, N.Y., 10007, by telephone at 929-833-1246 or by e-mail to info@titanpartnersgrp.com.

The company is offering the common shares in the United States only. The common shares will not be qualified for sale under the securities laws of Canada or any province or territory of Canada and are not being offered for sale in Canada or to any resident of Canada.

About Profound Medical Corp.

Profound is a commercial-stage medical device company that develops and markets customizable, incision-free therapies for the ablation of diseased tissue.

Profound is commercializing Tulsa-Pro, a technology that combines real-time magnetic resonance imaging, robotically driven transurethral ultrasound and closed-loop temperature feedback control. Tulsa-Pro is designed to provide customizable and predictable radiation-free ablation of a surgeon-defined prostate volume while actively protecting the urethra and rectum to help preserve the patient's natural functional abilities. Tulsa-Pro has the potential to be a flexible technology in customizable prostate ablation, including intermediate-stage cancer, localized radio-recurrent cancer, retention and hematuria palliation in locally advanced prostate cancer, and the transition zone in large-volume benign prostatic hyperplasia (BPH). Tulsa-Pro is CE marked, Health Canada approved, and 510(k) cleared by the U.S. Food and Drug Administration.

We seek Safe Harbor.