Nanalysis Provides Corporate Update - February 17, 2022

Holding Call at 5pm ET Today

CALGARY, AB , Feb. 17, 2022 /CNW/ Nanalysis Scientific Corp. ("the Company", TSXV: NSCI , OTCQX: NSCIF , FRA: 1N1 ), a leader in portable NMR and MRI machines for healthcare and industrial applications, provides a corporate update and will be holding at call at 5:00pm ET today.

"Our growth trajectory continued though the end of 2021 and continues today," said Sean Krakiwksy, Chief Executive Office of Nanalysis. "After a solid fourth quarter we closed a banner year in 2021 for Nanalysis. Over a month ago we closed our acquisition of K'Prime and subsequently announced the acquisition of Quad Systems. We couldn't have been more pleased with the interest in our recent equity offering, resulting in an upsizing to satisfy demand. As I look into 2022, we will not be entering into any other acquisitions, we will focus on the integration of K'Prime and Quad Systems and focus on growing our sales with our current and future products. We truly believe we have set the stage to continue our growth trajectory into 2022, 2023 and beyond."

Financial Highlights (unaudited):

• Annual gross revenues for the twelve months ended December 31, 2021 of approximately $16 million , representing an increase of up to 103% year over year.
• Gross margins anticipated in the range of 63% to 65% for the twelve months ended December 31, 2021 .

Recent strategic and operational highlights include:

• Closed Marketed public offering and private placement for combined gross proceeds of $15,224,700 : These funds will be used to complete the acquisition of QUAD systems, provide working capital and accelerate organic growth.
• Announced Acquisition of Quad Systems: As part of the agreement, Nanalysis has provided Quad Systems with a CHF 1,000,000 loan (Loan) which is convertible into shares in the capital of Quad Systems, Nanalysis will the subscribe for 260,000 Quad Systems shares for cash consideration of CHF 6,500,000 (Equity Investment). On completion of the Equity Investment a second representative of Nanalysis will be appointed to Quad Systems' Board of Directors. At this stage, Nanalysis will own 43% of Quad Systems. Until July 1, 2023 (Option Period), Nanalysis has an option (Option) to acquire 100% of the issued and outstanding shares of Quad Systems at a pre-set valuation formula in a combination of cash and majority Nanalysis shares. During the Option Period, Nanalysis has a right of first refusal on all debt and equity offerings of Quad Systems.
• Announced closing of the acquisition of K'(Prime) Technologies ("Kprime"): Kprime a North American sales and service company, with a particular focus on scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications. Over the past four fiscal years KPrime's unaudited revenue has been between C$8 million and C$10 million with positive EBIDTA ⁽¹⁾ of roughly $1.0 to $1.5 million per year.
• The Company delivered 13 100 MHz units in the Fourth Quarter and as at February 17, 2022 has 31 on back order . The expansion of the manufacturing facility has been completed and the newly trained manufacturing personnel are ramping up production.

Outlook
Sean Krakiwsky states, "Our current business for our flagship products, the 100MHz and 60MHz, remains very strong and we see this continuing. We are now able to continue to expand with a full sales and service organization in multiple additional channels with the addition of K'Prime. Conversely, K'Prime can now pursue RFP's and contracts that they were previously unable to as a stand-alone company. Quad Systems allows us to enter the high-end part of the market, expand our product line offerings and to leverage the capabilities of both Company's technology suites. We are confident these acquisitions will both help fuel our growth for the years to come."

Conference Call
Chief Executive Officer Sean Krakiwsky and Chief Financial Officer Luke Caplette will host a conference call to discuss these results at 5:00 P.M. Eastern time today. All interested parties are invited to join this call.

Investors interested in participating on the live call can dial 1-877-451-6152 or 1-201-389-0879 from abroad. Investors can also access the call online through a listen-only webcast https://themediaframe.com/mediaframe/webcast.html?webcastid=jAnyFUII , or on the investor relations section of the Company's website HERE .

The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback of the conference call will be available by calling 1-844-512-2921 or 1-412-317-6671 from abroad. The conference ID is 13727085. Telephonic playback will be available for 14 days after the conference call.

Financial Disclaimer
The preliminary estimated financial results and other data for the twelve months ended December 31, 2021 set forth above are subject to the completion of the Company's financial closing procedures. This data has been prepared by, and is the responsibility of, the Company's management. Ernst & Young, Nanalysis' independent firm of Chartered Professional Accountants, does not express an opinion or any other form of assurance with respect thereto. The Company currently expects that its final results of operations and other data for the year ended December 31, 2021 will be consistent with the estimates set forth above, but such estimates are preliminary and Nanalysis actual results of operations and other data could differ materially from these estimates due to the completion of its annual audit procedures, final adjustments, and other developments that may arise between now and the time such audited consolidated financials statements for the twelve months ended December 31, 2021 are released.

⁽¹⁾ Use of Non-GAAP Measures‎
Nanalysis reports on certain financial performance measures that are described and presented in order to provide shareholders and potential investors with additional measures to evaluate Nanalysis ability to fund its operations and information regarding its liquidity. In addition, these measures are used by management in its evaluation of performance. These financial performance measures ("Non-GAAP Terms") are not recognized financial terms under Canadian generally accepted accounting principles ("Canadian GAAP"). For publicly accountable enterprises, such as Nanalysis, Canadian GAAP is governed by principles based on IFRS and interpretations of IFRIC. Management believes these Non-GAAP Terms are useful supplemental measures. These Non-GAAP Terms do not have standardized meanings and may not be comparable to similar measures presented by other entities. Specifically, Working capital and EBITDA are not recognized terms under IFRS and do not have standardized meanings prescribed by IFRS.

About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA:1N1)
Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', Over the Counter (OTC) in the United States under the ticker symbol 'NSCIF', and on the Frankfurt Exchange (FRA) under the symbol '1N1'.

Nanalysis is an international business focused on capitalizing its proprietary technologies in nuclear magnetic resonance (NMR) that go into NMR spectrometers and magnetic resonance imaging (MRI). Nanalysis operates out of two subsidiaries, Nanalysis Corp. and RS2D S.A.S. (RS2D).

Nanalysis Corp. is an industry leader in developing and manufacturing compact NMR spectrometers for laboratory and industrial markets. Its advanced 60 and 100 MHz spectrometers require no liquid helium or other cryogens. These devices are used by chemical professionals spanning a wide variety of industries, including oil and gas, chemical, mining, pharmaceutical, and biotechnology.

Through its European subsidiary RS2D, the Company's electronic boards and software are used in conventional NMR and MRI equipment and are being incorporated into next-gen MRI systems as well as miniaturized MRI devices.

To sign up for updates relating to Nanalysis, please complete the online form found HERE .

Notice regarding Forward Looking Statements and Legal Disclaimer

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 accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Nanalysis Scientific Corp.

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