Mr. Ahmad Doroudian reports

BETTERLIFE PHARMA INC. ANNOUNCES CLOSING OF US$100 MILLION PUBLIC OFFERING OF COMMON SHARES AND PRE-FUNDED WARRANTS

Betterlife Pharma Inc. has closed its previously announced public offering of common shares of the company and prefinanced common share purchase warrants of the company. Pursuant to the offering, the company issued 447,041,840 common shares at a price of 25 Canadian cents per common share and 107,958,160 prefinanced warrants at a price of 24.999 Canadian cents per prefinanced warrant, for aggregate gross proceeds of approximately $100-million (U.S.) ($138.75-million (Canadian)).

The financing was led by Deep Track Capital with significant co-investments from Coastlands Capital, Marshall Wace, RA Capital Management and Perceptive Advisors, and participation from Adage Capital Management, Affinity Asset Advisors, Kalehua Capital, Sphera Fund Management, Squadron Capital Management, Stonepine Capital Management, Woodline Partners LP and other health care specialized institutional investors.

"This financing allows BetterLife to execute the BETR-001 clinical plans set out in our prospectus, beginning with phase 1 studies, and advancing into phase 2 in cluster headache and migraine," said Ahmad Doroudian, chief executive officer of Betterlife. "I want to express my sincere appreciation to our team for their dedication and perseverance over the past several years, as well as thank our existing shareholders for their continued support. I am proud of what we have accomplished together and confident that our collective efforts will continue to drive Betterlife's success going forward."

"We're proud to have investors of this quality supporting BETR-001," said Doug Drysdale, executive chairman of Betterlife. "Deep Track and the specialist health care funds that joined them are among the most experienced investors in the sector. This is an important program for patients. People living with cluster headache have few effective treatment options and many migraine patients don't respond adequately to the therapies available today."

The offering was completed on a commercially reasonable efforts agency basis pursuant to an agency agreement dated Sept. 11, 2026, among the company, Bloom Burton Securities Inc., as lead agent, and Haywood Securities Inc.

Each prefinanced warrant entitles the holder thereof to acquire, subject to adjustment in certain circumstances, one common share at a nominal exercise price of 0.001 Canadian cent per warrant share. The prefinanced warrants are exercisable at any time and, from time to time following issuance until exercised in full, subject to certain beneficial ownership limitations applicable to each investor.

The company has granted the agents an option, exercisable in whole or in part at any time until Oct. 17, 2026, being 30 days following the closing of the offering, to offer for sale such number of additional common shares and prefinanced warrants, together representing up to 15 per cent of the number of securities issued under the offering, solely to cover overallotments, if any. If the overallotment option is exercised in full, the aggregate gross proceeds of the offering will be approximately $115-million (U.S.) ($159,562,500 (Canadian)).

In connection with the offering, the company paid the agents a cash commission of $6.9-million (U.S.), equal to 7.0 per cent of the aggregate gross proceeds of the offering (other than in respect of securities sold to purchasers on the president's list), and issued to the agents 38,284,189 broker warrants, equal to 7.0 per cent of the aggregate number of securities issued under the offering (other than in respect of securities sold to purchasers on the president's list). Each broker warrant entitles the holder thereof to purchase one common share at an exercise price of 25 Canadian cents per common share until Sept. 17, 2029.

The company intends to use the net proceeds from the offering to: (i) conduct phase 1A studies in healthy humans; (ii) conduct phase 1B clinical trials for cluster headache and migraine in parallel, rather than sequentially; and (iii) conduct phase 2 clinical trials for cluster headache and migraine. The company also intends to use the net proceeds for working capital and other general corporate purposes, as more fully described in the prospectus (as defined below).

The offering was completed pursuant to a short form prospectus of the company dated Sept. 11, 2026, filed with the securities regulatory authorities in each of the provinces of British Columbia, Alberta and Ontario. The securities were also offered by way of private placement in certain jurisdictions outside of Canada pursuant to and in compliance with applicable securities laws. A copy of the prospectus is available on the company's profile on SEDAR+.

The common shares issued under the offering, and the warrant shares and the common shares issuable upon exercise of the broker warrants, will be listed on the Canadian Securities Exchange. The prefinanced warrants will not be listed on any stock exchange. Following closing of the offering, the company has 618,007,179 common shares and 107,958,160 prefinanced warrants issued and outstanding.

About Betterlife Pharma Inc.

Betterlife is an emerging biotechnology company primarily focused on developing and commercializing BETR-001 to treat various neurological disorders. BETR-001, which is in preclinical and IND-enabling (investigational new drug) studies, is a non-hallucinogenic and non-controlled LSD derivative in development and is unique in that it is unregulated and therefore can be self-administered. Betterlife's synthesis patent for BETR-001 eliminates controlled substance manufacturing hurdles and its pending patent, for composition and method of use, covers treatment of various neurological disorders, until around 2042. Betterlife also owns a drug candidate for the treatment of viral infections and is in the process of seeking strategic alternatives for further development.

We seek Safe Harbor.