Critical Outcome Technologies Closes $1.5 Million Private Placement

LONDON, ONTARIO and BOSTON, MASSACHUSETTS--(Marketwired - Sept. 20, 2017) - Critical Outcome Technologies Inc. (TSX VENTURE:COT)(OTCQB:COTQF) ("COTI" or the "Company"), a clinical stage biopharmaceutical company advancing a pipeline of targeted therapies for the treatment of cancer, today announced that it closed the first tranche of a non-brokered private placement with accredited investors primarily from its existing investor base. The Company issued approximately 1,300,000 units (the "Units") at a price of CAD $1.16 per Unit, for gross proceeds of approximately $1,500,000. Additional funding is expected from an upcoming second tranche to be closed in the next few weeks.

"We are pleased to have raised CAD $1.5 million, and appreciate the support of our investors, both new and existing," said Alison Silva, President and CEO. "These proceeds will support the ongoing development of COTI-2, as we advance the head and neck squamous cell carcinoma (HNSCC) Phase 1 clinical trial. We continue to expect to report secondary and exploratory endpoints from the gynecological arm of the trial later this year, and to report top-line data from the HNSCC expansion arm in 2018."

Each Unit consisted of one common share and one common share purchase warrant (each, a "Warrant") of the Company. Each Warrant is exercisable for one common share of the Company at an exercise price of $1.21 CAD per common share for a period of 12 months from the date of issue. The expiration date of the Warrants is subject to acceleration by the Company in certain circumstances. The common shares and Warrants issued by the Company pursuant to the private placement are subject to restrictions on resale in accordance with applicable Canadian and U.S. securities laws and the policies of the TSX Venture Exchange. In this regard, under Canadian securities laws, the common shares and Warrants comprising the Units are subject to restrictions on resale expiring on January 20, 2018, as are any common shares issued upon the exercise of the Warrants prior to the end of this restricted sale period. The offering is subject to final acceptance by the TSX Venture Exchange.