Mr. Kym Anthony reports

AVIVAGEN MAKES VOLUNTARY ASSIGNMENT INTO BANKRUPTCY UNDER THE BIA

Avivagen Inc. has made a voluntary assignment in bankruptcy for the benefit of its creditors pursuant to Section 49 of the Bankruptcy and Insolvency Act (Canada). BDO Canada Ltd. has consented to act as licensed insolvency trustee, and will administer the estate and realize on the company's assets in accordance with the BIA.

A notice of the bankruptcy and particulars of the first meeting of creditors will be sent to creditors by mail in the coming days.

Avivagen announced on May 18, 2023, that it had formed a special committee of the board of directors to explore strategic alternatives to maximize value for all stakeholders of the company. The special committee explored many alternatives and engaged with many of the world's leading animal health and animal feed and nutrition companies, including Fortune 500 companies. Avivagen connected with existing suppliers, distributors and new parties, leading to a number of reviews of the opportunity under confidentiality and with access to the company's core information. One international conglomerate, specialized in the animal health industry, put forward a non-binding letter of intent that was signed and that would have seen a significant value ascribed to the animal health business of Avivagen. Following the completion of an agreed-to exclusivity period and with significant diligence conducted, the other party notified Avivagen of a change at its company and that it could no longer complete the transaction. The LOI is no longer valid, and other parties were contacted to engage in a strategic transaction, with conversations not producing an offer for the company or its assets.

After a careful review of available options under the process to find strategic alternatives and following thorough consultation with its legal and financial advisers, the special committee and the entire board of directors determined that the only option was to file a bankruptcy under the BIA. Despite the growing industry enthusiasm for antibiotic-free, sustainable food production and Avivagen's encouraging field and commercial results, including with customers in multiple countries, there are no viable opportunities to raise additional capital in the current market conditions, and Avivagen was unable to identify a suitable solution available in the near term.

As a result of the contemplated transaction under LOI not being able to complete and insufficient resources, Avivagen has missed its regulatory requirements to file the following documents:

• Audited annual financial statements for the year ended Oct. 31, 2023;
• Management's discussion and analysis relating to the audited annual financial statements for the year ended Oct. 31, 2023;
• Certification of the foregoing filings as required by National Instrument 52-109 (Certification of Disclosure in Issuers' Annual and Interim Filings).

Trading in the common shares of the company on the TSX Venture Exchange has been halted, and it is anticipated that the trading thereof will continue to be halted permanently pending delisting.

"The decision to initiate a bankruptcy of the company has been the hardest decision in the entire journey of working for Avivagen -- a journey of science and evidence to bring better health to animals and people alike," stated Kym Anthony, chief executive officer of Avivagen. "I regret the impact the restructuring and bankruptcy of our business will have on our valued stakeholders. This has been an incredibly difficult decision, but is the only one available to us now."

About OxC-beta Technology and OxC-beta Livestock

Avivagen's OxC-beta Technology is derived from Avivagen discoveries about beta carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function, the technology provides a non-antibiotic means of promoting health and growth. OxC-beta Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Mexico, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia.

Avivagen's OxC-beta Livestock product is safe and effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta Livestock have proved that the product performs as well as and sometimes in some aspects better than in-feed antibiotics.

We seek Safe Harbor.