Dr. Madi Madiyalakan reports

QUEST PHARMATECH PROVIDES CORPORATE UPDATE

Quest Pharmatech Inc. has provided an update to its June 2 and June 6, 2023, news releases announcing the entry into of a non-binding agreement in principle with OQP Bio Inc. for the potential monetization of bonds held by Quest in OQP Bio.

Quest has recently been contacted by management of Canaria Bio M Co. Ltd. (CABM), the parent company to OQP Bio, advising that certain members of the former management team of CABM have been replaced and that the agreement in principle has been breached although is still considered to be legally valid. The breach was related to CABM's failure to identify a third party in a timely manner to buy 50 per cent of the OQP Bio bonds. The parties continue to negotiate in good faith and have commenced preliminary discussions to identify a buyer for the monetization of Quest's OQP Bio bonds. There can be no assurance that Quest will be successful in negotiating revised monetization terms with CABM for its OQP Bio bonds, that any definitive agreement will be entered into for such monetization, or that Quest will ultimately be able to monetize all or any part of its bonds. Quest is considering all available alternatives to monetize the OQP Bonds and unlock value for its shareholders.

Quest also announces that 42.5-per-cent-owned investee company, OncoQuest Inc., has commenced legal proceedings in Korea against CABM seeking payment of approximately 18.8 billion KRW or $14.5-million (U.S.) that remains unpaid in respect of the exercise of a put option by OncoQuest in connection with the sale of its immunotherapy technology assets to a predecessor to OQP Bio in April, 2020.

About Quest Pharmatech Inc.

Quest Pharmatech is a publicly traded, Canadian-based biopharmaceutical company (TSX-V: QPT) developing products to improve the quality of life. The company has a 42.5-per-cent ownership interest in OncoQuest Inc. which sold its immunotherapy technology assets to Korea-based OQP Bio Inc. in 2020. Quest also has a 23-per-cent ownership interest in OncoVent, a Chinese joint venture developing antibody-based immunotherapeutic products for cancer for the Greater China territory. Quest is also developing proprietary MAb AR 9.6 targeting truncated MUC16 as theranostic agents for cancer. AR 9.6 was licensed from University of Nebraska and currently is in the late preclinical stage.

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