(TheNewswire)
Edmonton, Alberta - TheNewswire - August 1, 2023 - Mr.Alan Savage (" Savage "), and Lonsdale CapitalCorporation collectively and presently owns or controls (directly orindirectly) 13,590,055 (approximately 34.93%) of the issued andoutstanding common shares on a non diluted basis of Innovotech Inc. (the" Company "), a reporting issuer in Alberta and British Columbialisted on the TSX Venture Exchange (TSXV:IOT), announce pursuant tothe early warning requirements of National Instrument 62-103, that onJuly 18, 2023, Lonsdale Capital Corporation (“Lonsdale”), acompany which is wholly owned and controlled by Savage, and can beconsidered a joint actor of Savage with respect to the Company,entered into an option agreement (the “Option Agreement”) with Dr.Craig Milne, the incoming Chief Executive Officer of the Company (the“Optionee”), to acquire up to 2,300,000 common shares of theCompany owned by Lonsdale, representing, approximately 5.91% of theissued and outstanding common shares of the Company, ranging in pricefrom $0.10 to $0.20 per common share as follows:
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up to 1,300,000 at a price of $0.10 per common shareexercisable immediately upon execution of the OptionAgreement;
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up to a further 500,000 common shares under option, orany lesser part thereof, at a price of $0.15 per common shareexercisable on or after the date that is twelve (12) months from thedate of grant; and
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the final 500,000 common shares under option, or anylesser part thereof, at a price of $0.20 per common share exercisableon or after the day that is twenty-four (24) months from the date ofgrant.
The Option Agreement is effective on August 1, 2023,the start date that the Optionee commences his position as ChiefExecutive Officer of the Company and expires on July 9, 2029 unlessmodified as per the Option Agreement.
Mr. Alan Savage, the President of Lonsdale states,“This Option Agreement, in its substance and simplicity speaks tothe confidence and trust that Lonsdale has in the ability of Dr. Milneto advance the cause of the Company and its shareholders.”
Immediately prior to and immediately after the enteringinto the Option Agreement, Savage (directly or indirectly) owned13,590,055 common shares of the Company, representing approximately34.93% of the issued and outstanding common shares. Of these commonshares, 75,000 common shares are owned directly by Savage and13,515,055 common shares are owned by Lonsdale. As well, Savageholds stock options for an additional 60,000 common shares and 264,027common share purchase warrants (“Warrants”), which if exercised,would raise the total number of common shares beneficially owned,directly or indirectly, by Savage to 13,914,082 common shares. Assuming the stock options and Warrants held by Savage wereexercised in full, Savage would own (directly or indirectly)approximately 35.46% of the then issued and outstanding common shares,on a partially diluted basis.
In the event the Option Agreement is exercised in full,the common shares of the Company owned by Savage, directly orindirectly, would decrease to a total 11,290,055 common shares of theCompany, of which 11,215,055 common shares would be held by Lonsdale,representing approximately 28.82% of the issued and outstanding commonshares of the Company. Savage also holds 60,000 stock options and264,027 Warrants which if exercised in full (and assuming no furtherissuances of common shares) will increase his ownership and control to11,539,082 common shares of the Company or 29.41%.
At this time, Savage nor Lonsdale has received anyconsideration with respect to this transaction.
Other than outstanding stock options and Warrants heldby him, Savage has no further rights to acquire any other securitiesof the Company. Depending on the market and other conditions Savagewill evaluate his investments in the Company and may increase ordecrease his investments by future acquisitions and dispositions ofcommon shares at his discretion, as circumstances warrant.
A copy of the Early Warning Report is available underthe Company’s SEDAR profile at www.sedar.com .
About Innovotech
Innovotech is a Canadian biotechnology company owningproprietary intellectual property, conducting contract research, andowning and providing proprietary devices for testing in multipleapplications in microbiology. Innovotech can be found online at www.innovotech.ca .
James G. Timourian
President
Innovotech Inc.
This document may containforward-looking statements that are predictive in nature and subjectto risks and uncertainties that cannot be predicted or quantified;consequently, actual results may differ materially from past resultsand those expressed or implied by any forward-looking statements.Factors that could cause or contribute to such risks or uncertaintiesinclude, but are not limited to: the regulatory environment includingthe difficulty of predicting regulatory outcomes; changes in the valueof the Canadian dollar; the Company’s reliance on a small number ofcustomers including government organizations; fluctuations inoperating results; government policies or actions; progress and costof clinical trials; reliance on key strategic relationships;uncertainty related to intellectual property protection and potentialcosts associated with its defense; the Company’s exposure tolawsuits and other matters beyond the control of management. Shouldknown or unknown risks or uncertainties materialize, or shouldmanagement’s assumptions prove inaccurate, actual results could varymaterially from those anticipated. The Company undertakes noobligation to publicly make or update any forward-looking statements,except as required by applicable law.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
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