Aequus Closes $1 Million Financing

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

VANCOUVER, British Columbia, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products is pleased to announce that it has closed a non-brokered private placement of 6,666,666 units of the Company (the "Units") at a price of $0.15 per Unit (the "Offering Price"), for aggregate gross proceeds of $1,000,000 (the “Private Placement”) to Marc Lustig, a director of the Company. Each Unit shall consist of one common share of the Company and one-half non-transferrable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.25 for a period of twenty-four (24) months following the transaction closing date. The Units will be subject to a four month hold period expiring June 27, 2021.
Aequus intends to use the proceeds of the Private Placement for general corporate and working capital purposes, including commercial and marketing activities and supporting on-going business development.

The securities issued under the Private Placement will be subject to a four month hold period in Canada following the date of closing. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The issuance of Units to Mr. Lustig under the Private Placement constitutes a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of any securities issued to, nor the consideration paid by, such individual would exceed 25.0% of the Company’s market capitalization.