March 12, 2020 | Kneat Announces Closing of $12,650,978 Public Equity Financing and Concurrent $1,830,522 Non-Brokered Private Placement Equity Financing

Not for distribution to United States newswire services or for dissemination in the United States

HALIFAX , March 12, 2020 /CNW/ – kneat.com, inc. (TSXV: KSI) (“Kneat”) is pleased to announce that it has closed its previously announced short form prospectus offering, including the full exercise of the over-allotment option. As such, a total of 6,024,275 common shares of the Company were sold at a price of $2.10 per common share (the “Issue Price”) for aggregate gross proceeds of $12,650,978 (the “Offering”). The Offering was completed by a syndicate of underwriters co-led by Cormark Securities Inc. and Canaccord Genuity Corp., and including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation (collectively, the “Underwriters”).

The Company also completed the non-brokered private placement of 871,677 common shares of the Company at the Issue Price for aggregate gross proceeds of $1,830,522 (the “Private Placement”). The common shares issued pursuant to the Private Placement are subject to a statutory four month hold period in accordance with applicable securities laws.

In connection with the Offering, the Company paid the Underwriters cash fees totalling $684,058 and issued 318,599 broker warrants, with each broker warrant exercisable into a common share at an exercise price of $2.10 per share for a period of 24 months. In connection with the Private Placement, the Company paid cash finders fees totalling $109,831 and issued 52,301 broker warrants, with each broker warrant exercisable into a common share at an exercise price of $2.10 per share for a period of 24 months.

The Company intends to use the net proceeds of the Offering and the Private Placement for growth initiatives, working capital and general corporate purposes.

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 prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

About Kneat

Kneat, a Canadian company with operational headquarters in Limerick, Ireland, develops and markets the next generation Kneat Gx software platform (“Kneat Gx”). Multiple business processes can be configured on Kneat Gx from equipment to computer system validation, through to quality document management. Kneat Gx allows users to author, review, approve, execute testing online, manage any exceptions and post approve final deliverables in a controlled FDA 21 CFR Part 11/ Eudralex Annex 11 compliant platform. Macro and micro report dashboards enable powerful oversight into all systems, projects and processes world-wide. Customer case studies are reporting productivity improvements in excess of 100% and a higher data integrity and compliance standard. For more information visit www.kneat.com.

Cautionary and Forward-Looking Statements

Except for the statements of historical fact contained herein, certain information presented constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Such forward-looking information, includes, but is not limited to, the relationship between Kneat and the customer, Kneat’s business development activities, the use and implementation timelines of Kneat’s software within the customer’s validation processes, the ability and intent of the customer to scale the use of Kneat’s software within the customer’s organization and the compliance of Kneat’s platform under regulatory audit and inspection. While such forward-looking statements are expressed by Kneat, as stated in this release, in good faith and believed by Kneat to have a reasonable basis, they are subject to important risks and uncertainties. As a result of these risks and uncertainties, the events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, given that they involve risks and uncertainties. Kneat does not undertake any obligation to release publicly revisions to any forward-looking statement, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investors’ own risk.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Hugh Kavanagh, Chief Financial Officer, kneat.com, inc., 2001-1969 Upper Water Street, Halifax, NS, B3J 3R7, T: +353 61 203826, E: [email protected]