ARHT Announces Closing of Previously Announced Public Offering Raising Gross Proceeds of $7.9 million

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, March 17, 2021 (GLOBE NEWSWIRE) -- ARHT Media Inc. (TSX VENTURE: ART) ("ARHT" or the "Company") is pleased to announce that it has closed its previously announced overnight marketed offering (the “Offering”) of units of the Company (the “Units”) at a price of $0.24 per Unit (the “Offering Price”) for aggregate gross proceeds of $7,980,400.08. The Offering was led by Leede Jones Gable Inc.

Each Unit consists of one common share in the capital of the Company (each a “Common Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at an exercise price of $0.33 for a period of 36 months following the closing of the Offering; provided, however, that if volume weight average price of the Company's common shares is greater than $0.70 for a period of 10 consecutive trading days, the Company shall have the right to accelerate the expiry of the Warrants. The Company has received conditional approval to list the Warrants on the TSX Venture Exchange (the "TSXV"), subject to the fulfillment of the usual listing conditions.

The net proceeds of the Offering will be used to: i) increase direct and channel marketing programs; ii) increase inventory levels; iii) increase personnel and sales support programs; iv) develop in-house technical expertise; v) grow sales team and authorized partner program; vi) product and software development; vii) develop patent portfolio; viii) repay the outstanding secured debentures of the Company maturing on December 30, 2021; and viii) working capital and general corporate purposes.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the 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 State in which such offer, solicitation or sale would be unlawful.