Mr. David Regan reports

SONA NANOTECH CLOSES ACQUISITION OF SIVA THERAPEUTICS, PLANS FOR FIRST THERAPY APPLICATION FOR COLORECTAL CANCER

Sona Nanotech Inc. has closed its previously announced acquisition of Siva Therapeutics Inc. Pursuant to the share exchange agreement announced on Jan. 26, 2023, Sona has issued 15,107,457 common shares in the company to the shareholders of Siva, which were issued at the 10-day volume-weighted average price for 18.24 cents per share, or $2-million (U.S.) in total. As additional consideration, Sona may issue additional performance shares to the shareholders of Siva in up to four instalments for up to an additional $6.65-million (U.S.) in Sona common shares, upon Siva achieving the four milestones, described in Sona's press release of Jan. 26, 2023.

David Regan, chief executive officer of Sona, commented: "By merging with Siva, Sona's primary goal now becomes developing targeted hyperthermia therapy (THT) to help increase the treatability of colorectal cancer and reduce the estimated 60,000 deaths that are projected to occur each year in North America. In so doing, there is a service obtainable market for THT for rectal cancer alone estimated to be $2.1-billion (U.S.). While this won't be quick or easy to achieve, doing so could save lives and improve the quality of life for thousands for people living with cancer."

"In Sona, we found the most stable, biocompatible and scalable gold nanorods available, and the recent analysis by the National Cancer Institute's Nanotechnology Characterization Laboratory (NCL) gave us further confidence. We look forward to using those materials in THT first for rectal cancer in a minimally invasive outpatient procedure that addresses an underserved patient segment. With success, we'd look to then address head and neck cancer, esophageal cancer, prostate cancer, and bladder cancer, each of which has characteristics possibly making them suitable for THT," said Len Pagliaro, PhD, president and chief executive officer of Siva.

Sona will now work to progress the development of Siva's THT photo thermal therapy for cancer using Sona's uniquely biocompatible gold nanorods. The company's preparation to develop THT for use in colorectal cancer will include engaging appropriate regulatory counsel, pursuing laboratory accreditation for the production of Sona's biocompatible gold nanorods, the engineering of the next generation of Siva's SivaLum light source and securing the further preclinical studies that are expected to be required to obtain regulatory clearance for human trials.

Dr. Pagliaro, PhD, CEO of Siva, will now serve as chief scientific officer of Sona and president of Sona's wholly owned U.S. subsidiary, Siva Therapeutics Inc. Sona's Darren Rowles will assume the new role of head of diagnostics for Sona and continue to drive the development of Sona's rapid concussion and bovine tuberculosis tests, both of which also rely upon Sona's biocompatible gold nanorod platform technology.

As announced on Feb. 24, 2023, the company completed an oversubscribed equity financing which raised $1.1-million in gross proceeds.

About Sona Nanotech Inc.

Sona Nanotech is a nanotechnology life sciences firm that has developed multiple proprietary methods for the manufacture of various types of gold nanoparticles. The principal business carried out and intended to be continued by Sona is the development and application of its proprietary technologies for use in multiplex diagnostic testing platforms that will improve performance over existing tests in the market. Sona Nanotech's gold nanorod particles are CTAB (cetyltrimethylammonium) free, eliminating the toxicity risks associated with the use of other gold nanorod technologies in medical applications. It is expected that Sona's gold nanotechnologies may be adapted for use in applications, as a safe and effective delivery system for multiple medical treatments, subject to the approval of various regulatory boards, including Health Canada and the Food and Drug Administration.

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