DIRTT Adopts Shareholder Rights Plan and Enters Into Support Agreement

CALGARY, Alberta, March 22, 2024 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (TSX: DRT; OTC: DRTTF), a leader in industrialized construction, announced today that its Board of Directors has adopted the shareholder rights plan announced on March 19, 2024 and has also entered into a support agreement with DIRTT’s largest shareholder, 22NW Fund, LP.

As previously announced, the rights plan is substantially similar to the rights plan adopted by the Company in 2021 and is intended to limit further concentration of ownership of the company. While the rights plan has been approved by the Board of Directors with one director dissenting and is now in effect, it remains subject to shareholder ratification within six months of its adoption. The date and time of the special meeting of shareholders to ratify the rights plan will be announced by the Company at a future date and is expected to be in the third quarter of 2024.

If the rights plan is not ratified by shareholders, the rights plan and any rights issued thereunder will cease at that time. The rights plan is not being adopted in response to any specific proposal to acquire control of the Company, and the board is not aware of any pending or potential take-over bid for the Company.

Under the support agreement, among other things, 22NW Fund, LP has agreed to certain voting and standstill obligations, including voting in favor of the ratification of the rights plan and voting in favor of the management director nominees at each of the next two annual general meetings of the Company. The full text of the rights plan and support agreement will be available on the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

ABOUT DIRTT

DIRTT is a leader in industrialized construction. DIRTT’s system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, healthcare, education, and public sector markets, DIRTT’s system provides total design freedom, and greater certainty in cost, schedule, and outcomes. DIRTT’s interior construction solutions are designed to be highly flexible and adaptable, enabling organizations to easily reconfigure their spaces as their needs evolve. Headquartered in Calgary, AB Canada, DIRTT trades on the Toronto Stock Exchange under the symbol “DRT”.