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Edmonton, Alberta TheNewswire - October 15, 2025 Innovotech Inc. (TSX-V: IOT) ("Innovotech" or the "Company") is pleased to announce a series of strategic initiatives that advance its expansion into analytical laboratory services, an area representing significant and growing market opportunities.
As part of this strategy, Innovotech intends to complete an offering (the "Offering"), subject to TSX Venture Exchange ("TSX V") acceptance and other regulatory approval as applicable, in the form of an unsecured convertible debenture ("Debenture") for an aggregate principal amount of up to $200,000. The Debenture carries an interest rate of eight percent (8%) to be paid quarterly in cash. The Debenture and all accrued and unpaid interest shall mature on the date which is 60 months from the closing of the Offering (the "Maturity Date"). The principal amount of the Debenture may, at the option of the debenture holder, be converted, in whole or in part, at any time before the Maturity Date into common shares of the Company ("Common Shares") at a price of $0.25 per Common Share.
Proceeds from the Offering will be applied to expand Innovotech's analytical services and capabilities through its Keystone Labs division, including the purchase of state-of-the-art laboratory equipment to enable hazardous drug testing and further analytical and identification capabilities. This investment substantially enhances the Company's technical capacity and positions Innovotech to serve increasingly complex and regulated markets in health product commercialization, pharmaceuticals, and natural health product validation.
To fuel this next phase of growth, Innovotech is pleased to announce the addition of Mr. Jeff Kelly to its team who brings extensive experience in analytical testing equipment sales and service, and will play a key role in establishing Innovotech as a trusted provider of analytical services in regulated markets.
"These investments mark a pivotal step in Innovotech's evolution," said Craig Milne, CEO of Innovotech Inc. "We see strong potential to extend our deep integration in our clients' product development activities into adjacent analytical markets, where regulatory rigor and data integrity are driving demand."
The Company believes that expanding into analytical services will not only diversify its revenue streams but also strengthen its role as a leading contract research organization, serving industries that depend on rigorous scientific validation.
Innovotech anticipates that a "related party" of Innovotech will be the single participant in the Offering. The acquisition of the Offering by such "related party" will constitute a "related party transaction" pursuant to the policies of the TSX Venture Exchange and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In particular, Innovotech determined that the exemptions set out in paragraph (a) and (b) in section 5.5 of MI 61-101 are applicable since the aggregate consideration to be paid by the related party does not exceed 25% of the market capitalization of Innovotech and Innovotech is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemptions, the independent directors have determined that the exemptions set out in paragraphs (1)(a) and (b) in section 5.7 of MI 61-101 are applicable in that the aggregate consideration to be paid by the related party does not exceed 25% of the market capitalization of Innovotech, the distribution of the securities to the related party has a fair market value of not more than $2,500,000 and Innovotech is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. No finders fees are applicable with respect to the Offering.
The "related party" has also given notice that it intends to exercise 384,615 Innovotech share purchase warrants at $0.17 acquired pursuant to the terms of a private placement that closed on November 6, 2024 for consideration of $65,384.55.
About Innovotech:
Innovotech Inc. is a diversified Canadian technology company with business operations in a growing portfolio of specialized laboratory services, biotechnology businesses, and proprietary intellectual property. Innovotech Inc. manages several subsidiary companies. Innovotech Labs Corporation is a contract research organization that owns and provides proprietary devices for antimicrobial testing in multiple applications and commercializes antimicrobial silver solutions. Learn more at www.innovotech.ca . Keystone Labs Inc. is a DEL-accredited lab serving the Canadian pharmaceutical industry and industrial markets. Learn more at www.keystonelabs.ca. Innovotech Inc. owns a 60% stake in NouLifeSciences Inc., a company holding intellectual property related to antioxidant molecules with potential applications in cosmetics and various medical conditions including neuropathies.
Craig Milne, CEO Innovotech Inc.
+1-604-239-1819 craig.milne@innovotech.ca
This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company's reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company's exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management's assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward- looking statements, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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