Mr. Ghislain Lemire reports

URBANIMMERSIVE STRENGTHENS ITS FINANCIAL POSITION THROUGH NEW FUNDING AND DEBT REPAYMENTS DEFERRAL

Urbanimmersive Inc. has completed a non-brokered private placement of 11,538,461 units at a price of 6.5 cents per unit for net proceeds of $750,000. Each unit consists of one common share of the company and a warrant entitling the holder to purchase one additional common share of the company at a price of 10 cents per share until June 27, 2026. The net proceeds should be used for working capital and general purposes. The units issued under this private placement are subject to a hold period of four months and one day until Oct. 28, 2023. No commissions were paid. The closing of this arm's-length private placement is subject to the approval of the TSX Venture Exchange and other customary conditions.

Furthermore, the company has reached an agreement with its bank to restructure its two main term loans (balance of $2.6-million as of today) and was thus able to obtain: (1) a capital repayment moratory until February, 2024, inclusively; and (2) that a portion (5.50 per cent) of the interests payable monthly to be capitalized to the loans until maturity in June, 2024.

The company has also reached an agreement with its principal financial partner and shareholder to restructure its promissory note (face value of $6.5-million) related to the acquisition of HomeVisit so that 50 per cent is payable no later than Oct. 19, 2027, and 50 per cent is payable no later than Oct. 19, 2030. In addition to the annual interest of 7.50 per cent capitalized to the promissory note, all integration costs charged to the company (approximately $224,000 (U.S.)) by the seller will be capitalized to the promissory note as well. The annual interest will be calculated on the face value of the promissory note (initially $6.5-million) to exclude capitalized interest in the calculation. This written agreement is subject to the finalization of the legal documentation and any other conditions required by the regulatory authorities.

The principal repayment moratory and the interest relief obtained on the two main term loans, as well as the restructuring of the promissory note, should allow the company to free up to greater than $1.0-million of liquidities over the next 12 months and approximately $1.5-million over the next five years. By combining these creditor reliefs, the rationalization of personnel, the optimization of operations carried out over the last couple of months and the private placement of $750,000, the company should be able to free up cash of nearly $4.0-million over the next 12 months. All those measures should, among other things, allow the company to rebalance its working capital and strengthen its financial position in general, while remaining resolutely focused on expanding its business further.

"We are pleased to have obtained this important strategic financing, as well as the support of our principal financial partners, who demonstrate their confidence in our team and our business plan. The combination of this financing and the debt relief granted provides us with the financial flexibility necessary to accelerate our sales, marketing and product development efforts in order to generate our expected organic growth. Those important measures will strengthen our financial situation, improve our operational efficiency and ultimately look to the future of Urbanimmersive with optimism," said Simon Bedard, chief financial officer of Urbanimmersive.

In recent months, the company's management and some employees have accepted that a portion of their compensation be paid in shares to reduce the pressure on the company's liquidities. The company issued 1,167,160 shares at a price of 6.5 cents to management, employees and a consultant as compensation.

About Urbanimmersive Inc.

Urbanimmersive develops and commercializes real estate photography technologies and services focused on redefining industry visual content standards. The company's all-in-one platform enables high-volume photography businesses to increase operational productivity, delivering feature-rich 3-D tours and floor plans, leading-edge property websites, and high-resolution artificial-intelligence-indexed images. The company's operating segments include software (software-as-a-service), 3-D photography equipment and, in a growing number of North American cities, technology-powered real estate photography service business units leading the industry photo-shoot standards transformation.

We seek Safe Harbor.