Mr. Brian Kalish reports

XIGEM TECHNOLOGIES PROVIDES UPDATE AND GUIDANCE FOR FISCAL 2023

Xigem Technologies Corp. has provided an update on its acquisition of EchoDigital, a software-as-a-service (SaaS)-fuelled artificial intelligence (AI) automobile shopping and delivery platform, as previously announced on March 8, 2023, and to provide guidance for the balance of the company's fiscal 2023 period.

As previously disclosed on May 4, 2023, and May 30, 2023, subsequent to the acquisition, and in accordance with the royalty and service-based management agreement that formed a portion of the asset purchase agreement between Xigem and EchoDigital's vendor, based on unaudited interim financial information for the period from March 8 to March 31, 2023, the EchoDigital asset contributed gross sales of $439,684, with net sales of $13,191 for Xigem in its first fiscal quarter of 2023.

As also previously disclosed on May 4, 2023, and May 30, 2023, in April, 2023, the company was made aware that one of the vendor's subsidiaries licensed to sell automobiles in Ontario received a temporary suspension of its licence by its regulator, the Ontario Motor Vehicle Industry Council (OMVIC). As a result, this suspension has impacted and, as described in the company's continuous disclosure filings, was expected to impact the anticipated performance the company's EchoDigital asset through its second fiscal quarter of 2023, and the balance of 2023.

On Aug. 1, 2023, the company was made aware by the vendor that all of its shares have been sold to Carnance Inc., a dealer of new and preowned vehicles, currently registered with OMVIC. On Aug. 17, 2023, the company was made aware by Carnance that OMVIC has approved a change in control of Carnance, being a necessary component of the Carnance transaction.

As part of the Carnance transaction, the royalty and service-based management agreement, and loan agreement, entered into between Xigem and the vendor as part of the acquisition have been assumed, in their entirety, by Carnance. As a result, the company anticipates performance of its EchoDigital asset to likely resume in the third part of its fiscal third quarter and/or first part of its fourth fiscal quarter of 2023.

As previously announced on March 8, 2023, the company expects to place the EchoDigital asset into a new wholly owned subsidiary of the company.

About Xigem Technologies Corp.

Established in Toronto, Ont., Xigem is positioned to become a leading technology provider for the emerging near trillion-dollar remote economy, with software capable of improving the capacity, productivity and overall remote operations for businesses, consumers and other organizations. iAgent, the company's patented technology, FOOi, its proprietary peer-to-peer mobile payments app, and Echodigital, an AI-powered SaaS automotive shopping platform, are intended to provide organizations, businesses and consumers with the tools necessary to thrive in a vast array of remote working, learning, shopping and treatment environments, while the company looks to aggregate a portfolio of innovative technologies capable of disrupting traditional business models.

We seek Safe Harbor.