Zecotek Announces Proposed Debt Settlement

SINGAPORE--(Marketwired - January 05, 2018) - Zecotek Photonics Inc. (TSX VENTURE: ZMS) (FRANKFURT: W1I), a developer of leading-edge photonics technologies for medical, industrial and scientific markets, announced today that it has entered into agreements to settle an aggregate of $2,958,019 of debt owed to certain creditors to the Company, including directors, employees and third-party consultants, in consideration for the issuance of common shares of the Company. The creditors have agreed to a payout discount of up to 40% of total debt and will be issued 5,752,653 common shares of the Company at a deemed price of $0.32 per share.

"As the Company enters the commercialization phase of its photonics technologies, I would like to thank the employees, management and directors for their dedication and continued support," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. This loyal group has full confidence in the Company's success and have discounted their unpaid wages and fees by up to 40%, which will be paid out in shares in the Company. This shows trust, belief and true commitment in the Company's future. We start the new year with a substantially improved balance sheet and a business plan to increase value for shareholders."

A total of $1,033,880 of the debt is held by current insiders of the Company and includes management fees and director fees. Insiders will receive a total of 1,938,526 common shares on completion of the debt settlement. The disinterested directors of the Company have approved the debt settlements with the respective insiders and their associates and affiliates.

The debt settlement is subject to TSX Venture Exchange (TSXV) approval. Closing of the debt settlement will occur immediately following approval from TSXV.

The insider debt settlements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization.