Medivolve Announces Closing of "Bought Deal" Private Placement

THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Jan. 26, 2021 (GLOBE NEWSWIRE) --  Medivolve Inc. (“Medivolve” or the “Company”) (NEO:MEDV; FRA:34C1) is pleased to announce that it has closed the previously announced "bought deal" private placement of an aggregate of 20,000,000 units (the “Units”) at a price per Unit of $0.25 (the “Issue Price”) for aggregate gross proceeds to the Company of $5,000,000 (the “Offering”). Canaccord Genuity Corp. (“Canaccord”) acted as the sole lead underwriter and sole bookrunner for the Offering.

Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.40 for a period of 24 months from the date hereof, subject to an acceleration right exercisable by the Company if, at any time following the date that is four months and one day from the closing date, the daily volume weighted average trading price of the Company's Common Shares on the NEO Exchange is greater than $0.80 for the preceding 10 consecutive trading days.

As consideration for the services provided by Canaccord in connection with the Offering, Canaccord received (i) a cash commission equal to 6.5% of the gross proceeds of the Offering (other than from the issue and sale of the Units to certain purchasers on a president's list, for which a 3.0% cash commission was paid), (ii) a corporate finance fee equal to 276,800 Units, and (iii) 1,160,000 compensation warrants (the “Compensation Warrants”). Each Compensation Warrant shall entitle the holder thereof to acquire one Unit at the Issue Price for a period of 24 months from the date hereof.

The Company plans to use the net proceeds from the Offering to expand its testing capacity, for the repayment of existing debt and for general corporate purposes.

The securities issued under the Offering are subject to a statutory hold period of four months and one day following the closing date, expiring May 27, 2021.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.