Mr. Stephen Kilmer reports

PROFOUND MEDICAL ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Profound Medical Corp. has entered into subscription agreements, dated as of Jan. 16, 2024, with certain existing Canadian institutional investors, in connection with a non-brokered private placement for aggregate gross proceeds of approximately $2,937,502 (U.S.).

In connection with the closing of the private placement, the company is expected to issue an aggregate of 391,667 common shares in the capital of the company at a price of $7.50 (U.S.) per common share. All of the common shares issued in connection with the private placement will be subject to a four-month-and-one-day statutory hold period. The company expects to use the proceeds from the closing to finance the continued commercialization of the Tulsa-Pro system in the United States, the continued development and commercialization of the Tulsa-Pro system and the Sonalleve system globally, and for working capital and general corporate purposes.

The closing of the private placement is expected to occur on or about Jan. 17, 2024, subject to customary closing conditions.

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 MRI, 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. Tulsa-Pro is CE marked, Health Canada approved, and 510(k) cleared by the U.S. Food and Drug Administration.

Profound is also commercializing Sonalleve, an innovative therapeutic platform that is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases. Sonalleve has also been approved by the China National Medical Products Administration for the non-invasive treatment of uterine fibroids and has FDA approval under a humanitarian device exemption for the treatment of osteoid osteoma. The company is in the early stages of exploring additional potential treatment markets for Sonalleve, where the technology has been shown to have clinical application, such as non-invasive ablation of abdominal cancers and hyperthermia, for cancer therapy.

We seek Safe Harbor.