Mr. Stephen Kilmer reports

PROFOUND MEDICAL CORP. ANNOUNCES PRICING OF UP TO $40 MILLION FINANCING COMPRISED OF A $36 MILLION REGISTERED DIRECT OFFERING AND A SUBSEQUENT $4 MILLION PRIVATE PLACEMENT

Profound Medical Corp. will sell 5,142,857 common shares at a purchase price of $7 per share in a registered direct offering and has planned a subsequent private placement in Canada of up to 571,428 common shares at a purchase price of $7 per share for aggregate gross proceeds of up to $40-million.

The registered direct offering was structured as a straightforward equity investment with no warrant coverage and was led by health-care-dedicated investors alongside existing shareholders. This portion of the offering is expected to close on or about Monday, Dec. 22, 2025, subject to the satisfaction of customary closing conditions.

Gross proceeds to the company from the offering are expected to be approximately $36-million, before deducting placement agent's fees and other offering expenses payable by the company. The company intends to use the net proceeds from the offering for expansion of its sales and marketing, working capital, research and development, strategic transactions, and general corporate purposes.

Konik Capital Partners LLC, a division of T.R. Winston and Company LLC, is acting as the exclusive placement agent for this offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (file No. 333-291516), which was previously filed with and declared effective by the Securities and Exchange Commission on Dec. 4, 2025. The offering is being made only by means of a prospectus supplement and accompanying base prospectus, which form a part of the effective shelf registration statement. A prospectus supplement and the accompanying base prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website. Additionally, when available, electronic copies of the prospectus supplement and the accompanying base prospectus may be obtained, when available, from Konik Capital Partners, 7 World Trade Center, 46th floor, New York, N.Y., or by e-mail at capmarkets@konikcapitalpartners.com.

In addition to the registered direct offering, the company intends to complete a private placement of up to 571,428 common shares at a purchase price of $7 per share, for aggregate gross proceeds of up to $4-million, to certain Canadian purchasers on a private placement basis. The common shares sold pursuant to the private placement will be subject to a hold period of four months plus one day from the closing date of the private placement. The closing of the private placement is expected to occur on or prior to Dec. 30, 2025, and is subject to the company receiving all necessary approvals, including the conditional approval from the Toronto Stock Exchange. No securities will be sold under the private placement to U.S. purchasers.

About Profound Medical Corp.

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

Profound is commercializing Tulsa-Pro, a technology that combines real-time MRI, AI-enhanced planning, robotically driven transurethral ultrasound and closed-loop temperature feedback control. The Tulsa procedure, performed using the Tulsa-Pro system, has the potential of becoming a mainstream treatment modality across the entire prostate disease spectrum, ranging from low-, intermediate- or high-risk prostate cancer to hybrid patients suffering from both prostate cancer and benign prostatic hyperplasia, to men with BPH only, and, also, to patients requiring salvage therapy for radio-recurrent localized prostate cancer. The Tulsa procedure employs real-time MR guidance for precision to preserve patients' urinary continence and sexual function, while killing the targeted prostate tissue through precise sound absorption technology that gently heats it to 55 to 57 C. Tulsa is an incision- and radiation-free one-and-done procedure performed in a single session that takes a few hours. Virtually all prostate shapes and sizes can be safely, effectively and efficiently treated with Tulsa. There is no bleeding associated with the procedure, no hospital stay is required and most Tulsa patients report quick recovery to their normal routine. 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, adenomyosis, pain palliation of bone metastases, desmoid tumours and osteoid osteoma. 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. Profound 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.