Mr. Jim Hutchens reports

IMAGIN MEDICAL ANNOUNCES PROPOSED OFFERING OF $3 MILLION OF CONVERTIBLE NOTES AND SHARE CONSOLIDATION

Imagin Medical Inc. intends to:

1. Offer, subject to market conditions and other factors, up to $3-million (U.S.) aggregate principal amount of convertible notes;
2. Undertake a 1:20 share consolidation that will occur on or about the first closing of the offering.

Offering of convertible notes

The notes will be secured obligations of Imagin; will accrue 10-per-cent interest annually, payable semi-annually in arrears; and will mature 18 months following the date of issue, unless earlier repurchased, redeemed or converted. The notes will be convertible at the holder's discretion into units at a conversion price of two U.S. cents per unit (40 U.S. cents postconsolidation). Each unit will consist of one postconsolidated common share, one-half common share purchase warrant exercisable at 2.5 U.S. cents (50 U.S. cents postconsolidation) and one-half common share purchase warrant exercisable at three U.S. cents (60 U.S. cents postconsolidation). All warrants will be exercisable for five years from the date of issue.

The offering may close in one or more tranches, at the discretion of the company. Closing of a $750,000 (U.S.) first tranche of the offering is expected to occur on or about Oct. 22, 2020, subject to completion of the consolidation and any required regulatory approval, including that of the Canadian Securities Exchange.

All securities issued in connection with the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Share consolidation

On or about the first closing, Imagin will complete, subject to CSE approval, a consolidation of its issued and outstanding common shares on the basis of 20 existing common shares for each postconsolidation share. The consolidation will reduce the number of shares outstanding, and the number of shares and warrants into which the notes can be converted. The consolidation will correspondingly increase the note conversion price and the warrant exercise prices.

About Imagin Medical Inc.

Imagin Medical is a surgical imaging company focused on advancing new methods of visualizing cancer during minimally invasive procedures. The company believes its first product, the i/Blue imaging system, with its proprietary optics and light sensors, will greatly increase the efficiency and accuracy of detecting cancer for removal, helping to reduce recurrence rates. The company's initial focus is bladder cancer.

We seek Safe Harbor.