Mr. Kristina Hachey reports

THERALASE(R) CLOSES $CAN 2.66 MILLION FINANCING

Theralase Technologies Inc. has successfully closed both a non-brokered private placement offering of units and a line of credit (LOC).

On closing of the offering, the corporation issued an aggregate of 6,404,700 units at a price of 26 cents per unit for aggregate gross proceeds of $1,665,222.

Each unit consisted of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire an additional common share at an exercise price of 36 cents per share for a period of five years following the date of closing.

The $1-million revolving LOC was secured through an agreement with Desjardins.

The company plans to use the proceeds of both financings to further the phase II BCG-Unresponsive non-muscle invasive bladder cancer (NMIBC) carcinoma in situ (CIS) clinical study currently under way, commencement of Good Laboratory Practice (GLP) toxicology analysis for Rutherrin, working capital and general corporate purposes.

Related party transactions

An aggregate of 937,400 units, representing gross proceeds of $243,724 were issued to certain insiders of the corporation. Pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9, such insider subscriptions are a related party transaction. The corporation is exempt from the formal valuation requirement of MI 61-101 in connection with the insider subscriptions in reliance on Section 5.5(b) of MI 61-101, as no securities of the corporation are listed or quoted for trading on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the Nasdaq stock market, or any other stock exchange outside of Canada or the United States. Additionally, the corporation is exempt from obtaining minority shareholder approval in connection with the insider subscriptions in reliance on Section 5.7(1)(a) of MI 61-101 as the aggregate value of the insider subscriptions does not exceed 25 per cent of the market capitalization of the corporation. Due to the limited time between the launch and the close of the offering, there will be less than 21 days between the date the corporation files its material change report in respect of the offering and the completion date of the offering.

Finder's fee

In connection with the offering, the company paid a finder's fee of $15,241, through the issuance of 58,620 common shares. In addition, the company issued 29,310 non-transferable finder warrants. Each finder warrant is exercisable into one common share at an exercise price of 36 cents per share for a period of five years following the date of closing.

All securities issued under the offering will be subject to a four-month-and-one-day hold period from the closing date under applicable Canadian securities laws, which expires on Aug. 11, 2026.

The offering is subject to receipt of final acceptance from the TSX Venture Exchange.

Roger DuMoulin-White, BSc, PEng, ProDir, president, chief executive officer and chairman of the board of Theralase, stated: "Closing of the $2.66-million financing, in conjunction with the previously announced $1.1-million equity financing completed on March 10, strengthens our balance sheet and provides the company with additional capital to execute on its strategic initiatives. In 2026, the company plans to file new drug applications to Health Canada and the FDA seeking marketing approval of its light-activated drug, Ruvidar, in the treatment of BCG-Unresponsive NMIBC CIS."

About Theralase Technologies Inc.

Theralase is a clinical stage pharmaceutical company dedicated to the research and development of energy-activated small molecules for the safe and effective destruction of cancer, bacteria and viruses.

We seek Safe Harbor.