Mr. Mike Seckler reports

EVOME MEDICAL TECHNOLOGIES EXECUTES NON-BINDING LETTER OF INTENT TO EXTEND REMAINING SIMBEX ACQUISITION DEBT TO JUNE 2025; INCREASES SALES TARGETS BY 7.5% FOR BIODEX DISTRIBUTION CONTRACTS; RAISES BIODEX PRODUCT PRICING BY 2% FOR 2024

Evome Medical Technologies Inc. has executed a non-binding letter of intent (LOI) to extend acquisition debt of $3,294,440 (U.S.) to the sellers of Simbex LLC to June 30, 2025. In exchange for the extensions, the company intends to grant the Simbex sellers: (i) a subordinated security interest in all non-Biodex assets; (ii) a 10-per-cent annual interest rate on the amount due from April 14, 2023, to the due date; (iii) cash payments when free cash flow balances of the company exceed $500,000 after payments to other creditors with priority; and (iv) a waiver from the contractual restriction from holding more than 500,000 common shares of Evome at any one time. As part of the transaction, Simbex sellers have indicated an intention to convert the 4,640,708 Class A non-voting shares still held into common shares.

The company has increased sales targets by 7.5 per cent for all distributors in the United States, as well as raising Biodex product prices 2 per cent on all products, effective Jan. 1, 2024, for the United States market. The management believes these new targets and price increases should have a positive impact on the current quarter.

"I am pleased we were able to restructure and extend this last part of our acquisition debt obligation," said Mike Seckler, chief executive officer of Evome Medical Technologies. "This enables the company to use capital in the coming quarters to accelerate growth and work towards building cash on our balance sheet. Two thousand twenty-four is shaping up to be an exciting year for us. We have two new products we expect to launch shortly. We have a new sales and marketing team that has improved our distribution contracts by incorporating performance metrics, including volume minimums. We have reorganized the board of directors and the top management to focus on our business plan. This debt extension follows my plan to provide time and space to execute our business plan over the next 18 months. As part of the negotiations with the Simbex sellers, we made sure this debt extension did not violate any of the terms of our previous agreement executed with holders of our other acquisition debt and our current bank lines."

We seek Safe Harbor.