Nanalysis Enters into New Credit Facility with ATB Financial

Nanalysis Scientific Corp. ("the Company" or "Nanalysis", TSXV: NSCI OTCQX: NSCIF FRA: 1N1 ), a leader in portable NMR machines and MRI technology for industrial and research applications, is pleased to announce that it has entered into a commitment letter with ATB Financial (the "Credit Agreement").  Under the Credit Agreement, ATB Financial has made available to the Company a senior secured term loan in the principal amount of up to $10 million and a senior secured revolving operating line in the principal amount of up to $5 million (the "Credit Facilities"), for total borrowings of up to $15 million .  Furthermore, with ATB Financial's approval, the Company could obtain up to an additional $5 million incremental term loan.  The new Credit Facilities are expected to provide improved financial flexibility to help the Company manage its operations, implementation of contracts, and future growth.

The term loan amortizes over four years beginning in January 2024.  The revolving operating line is calculated and available based on the accounts receivable and inventory of the Company, in a largely consistent manner with the Company's current operating facility. The Credit Facilities will be secured by, inter alia , a general security agreement over the property of Nanalysis and certain of its subsidiaries.  These new Credit Facilities will replace the Company's current operating facility with another lender.

In connection with the Credit Agreement, the Company has granted 500,000 common share purchase warrants to ATB Financial (the "Warrants"). Each Warrant entitles the holder thereof to acquire 1 common share at an exercise price of $0.80 . The Warrants expire two years from the closing date of the Credit Agreement. The issuance of the Warrants has been conditionally approved by the TSX Venture Exchange.

" We are very happy to welcome ATB Financial as our banking partner and senior lender. We believe the credit facilities ATB Financial is providing are much better suited for where the Company is positioned today and will enable us to build value for our investors in the future," said Sean Krakiwsky , Founder and CEO of Nanalysis.  "This transaction strengthens our balance sheet and provides us with a strong capital structure to execute on our contracts and pursue our future growth initiatives."

Nanalysis' business is what we term "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The Company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020 Nanalysis announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.

Nanalysis' devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.

In 2022 the Company acquired K'(Prime) Technologies Inc. ("K'Prime"), a North American sales and service company which provides sales services for scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications.  K'Prime's service organization provides airport and commercial security installation and maintenance solutions across North America .

Additionally in 2022, the Company acquired a 43% ownership in Quad Systems AG ("Quad Systems"), a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither 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.

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SOURCE Nanalysis Scientific Corp.

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