A2Z Smart Technologies Closes Previously Announced US$5.8 Million Registered Direct Offering and Announces New US$1 Million Registered Direct Offering

TEL AVIV, ISRAEL / ACCESSWIRE / June 15, 2023 / A2Z Smart Technologies Corp. ("A2Z" or the "Company") (TSXV:AZ)(NASDAQ:AZ), a global leader in innovative technology solutions, today announced that it closed its previously announced US$5.8 million registered direct offering on June 15, 2023. The company entered into agreements on June 12, 2023 relating to the sale of 3,262,720 common shares, at a purchase price of US$1.80 (CAN$2.41) per share, together with warrants to purchase 1,631,356 common shares at an exercise price of US$2.20 (CAN$2.93) per share for a period of two years from issuance. The gross proceeds from the offering were US$5,872,900 (CAN$7,849,300) before deducting fees and expenses.

A2Z anticipates that the net proceeds from this offering, after deducting offering expenses, will be used for working capital and general corporate purposes. No placement agent was used or participated in the offering. The Company has paid certain persons including US registered broker dealers and non-US residents fees of USD $469,832 and issued them 261,018 warrants (the "Finder Warrants"). Each Finder Warrant will be exercisable into an additional common share upon payment of US$2.20 (CAD$2.93) per Warrant. The Finder Warrants have been issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.

The company has filed a prospectus with the Securities and Exchange Commission relating to the common shares and warrants issued to the investors, which can be viewed at www.sec.gov.

Also on June 15, 2023 the Company announced that it has entered into a definitive securities purchase agreement with an accredited investor to purchase, in a new registered direct offering (the "New Offering), 555,555 common shares, at a purchase price of US$1.80 (CAN$2.41) per share, together with warrants to purchase 277,778 common shares at an exercise price of US$2.20 (CAN$2.93) per share for a period of two years from issuance, for aggregate gross proceeds equal to US$1,000,000 (CAN$1,338,888). In relation to the New Offering, the Company has agreed to pay certain persons including US registered broker dealers and non-US residents fees of USD $80,000 and has agreed to issue them 44,444 Finder Warrants. Subject to customary closing conditions, including the final approval of the TSX Venture Exchange, the New Offering is expected to close on June 21, 2023. The intended principal uses of proceeds of the New Offering are the continued development and expansion of existing business and for working capital purposes.