Edmonton, Alberta - TheNewswire - August 1, 2023 - Mr. Alan Savage ("Savage"), and Lonsdale Capital Corporation collectively and presently owns or controls (directly or indirectly) 13,590,055 (approximately 34.93%) of the issued and outstanding common shares on a non diluted basis of Innovotech Inc. (the "Company"), a reporting issuer in Alberta and British Columbia listed on the TSX Venture Exchange (TSXV:IOT), announce pursuant to the early warning requirements of National Instrument 62-103, that on July 18, 2023, Lonsdale Capital Corporation (“Lonsdale”), a company which is wholly owned and controlled by Savage, and can be considered 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 the Company owned by Lonsdale, representing, approximately 5.91% of the issued and outstanding common shares of the Company, ranging in price from $0.10 to $0.20 per common share as follows:

• up to 1,300,000 at a price of $0.10 per common share exercisable immediately upon execution of the Option Agreement; 

• up to a further 500,000 common shares under option, or any lesser part thereof, at a price of $0.15 per common share exercisable on or after the date that is twelve (12) months from the date of grant; and 

• the final 500,000 common shares under option, or any lesser part thereof, at a price of $0.20 per common share exercisable on or after the day that is twenty-four (24) months from the date of grant. 

The Option Agreement is effective on August 1, 2023, the start date that the Optionee commences his position as Chief Executive Officer of the Company and expires on July 9, 2029 unless modified as per the Option Agreement.

Mr. Alan Savage, the President of Lonsdale states, “This Option Agreement, in its substance and simplicity speaks to the confidence and trust that Lonsdale has in the ability of Dr. Milne to advance the cause of the Company and its shareholders.”

Immediately prior to and immediately after the entering into the Option Agreement, Savage (directly or indirectly) owned 13,590,055 common shares of the Company, representing approximately 34.93% of the issued and outstanding common shares.  Of these common shares, 75,000 common shares are owned directly by Savage and 13,515,055 common shares are owned by Lonsdale.  As well, Savage holds stock options for an additional 60,000 common shares and 264,027 common 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 were exercised 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 or indirectly, would decrease to a total 11,290,055 common shares of the Company, of which 11,215,055 common shares would be held by Lonsdale, representing approximately 28.82% of the issued and outstanding common shares of the Company.  Savage also holds 60,000 stock options and 264,027 Warrants which if exercised in full (and assuming no further issuances of common shares) will increase his ownership and control to 11,539,082 common shares of the Company or 29.41%.

At this time, Savage nor Lonsdale has received any consideration with respect to this transaction.  

Other than outstanding stock options and Warrants held by him, Savage has no further rights to acquire any other securities of the Company.  Depending on the market and other conditions Savage will evaluate his investments in the Company and may increase or decrease his investments by future acquisitions and dispositions of common shares at his discretion, as circumstances warrant.

A copy of the Early Warning Report is available under the Company’s SEDAR profile at www.sedar.com.

About Innovotech

Innovotech is a Canadian biotechnology company owning proprietary intellectual property, conducting contract research, and owning and providing proprietary devices for testing in multiple applications in microbiology. Innovotech can be found online at www.innovotech.ca.

James G. Timourian

President

Innovotech Inc.

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 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.