Mr. Thomas Looby reports

CONAVI MEDICAL REPORTS FISCAL THIRD QUARTER 2026 RESULTS AND OPERATIONAL HIGHLIGHTS

Conavi Medical Corp. has released financial results and provided an operational update for the fiscal quarter ended June 30, 2026 (fiscal Q3 2026).

• Net loss for fiscal Q3 2026 was $6.3-million (fiscal Q3 2025 -- $3.6-million) reflecting continued investment in research and development activities of $4.4-million (fiscal Q3 2025 -- $3.2-million);
• Ended fiscal Q3 2026 with $900,000 in cash and cash equivalents (fiscal Q4 2025 -- $5.8-million) and on Aug. 12, 2026, closed $10-million public offering;
• Received $1.25-million Ontario Life Sciences Scale-Up Fund Milestone Payment;
• Achieved U.S. (United States) FDA (Food and Drug Administration) 510(k) clearance for next-generation hybrid IVUS-OCT imaging system;
• Added to clinical evidence supporting hybrid IVUS-OCT imaging.

"Fiscal Q3 was an important quarter for Conavi with FDA 510(k) clearance for our next-generation hybrid IVUS-OCT system," said Thomas Looby, president and chief executive officer of Conavi Medical. "FDA clearance was a major milestone for the company and allows us to move forward with commercialization in the U.S. We believe there is a real clinical need for a system that gives physicians the benefits of both IVUS and OCT in a single platform. The case reports published to date, with additional publications expected, add to the clinical evidence supporting hybrid imaging and demonstrate how access to both modalities can support physician decision-making in complex coronary procedures. With the subsequent completion of our $10-million financing, we are now focused on completing the transfer to production and expect our first U.S. clinical placement in H2 2026."

Fiscal Q3 2026 financial highlights

All amounts are in Canadian dollars unless otherwise noted.

Net loss for fiscal Q3 2026 was $6.3-million, compared with a net loss of $3.6-million in the prior-year period. For the nine months ended June 30, 2026, net loss was $13.8-million compared with $13.7-million in the prior-year period.

Licensing and R&D (research and development) services revenue for fiscal Q3 2026 was $100,000 compared with $100,000 in the prior-year period. For the nine months ended June 30, 2026, total revenue was $500,000 compared with $8.8-million in the prior-year period. The prior-year period included milestone revenue under the company's technology transfer and licensing agreement with East Ocean Medical that did not recur in fiscal 2026.

Total operating expenses for fiscal Q3 2026 were $6.5-million compared with $4.7-million in fiscal Q3 2025. The increase primarily reflected higher research and development spending associated with Novasight 3.0 and transfer-to-production activities, as well as higher general and administrative expenses. Research and development expenses were $4.4-million compared with $3.2-million in the prior-year period.

Cash and cash equivalents were $900,000 as of June 30, 2026, compared with $5.8-million as of Sept. 30, 2025. Subsequent to quarter-end, the company completed the $10-million public offering described below.

For additional information regarding the company's financial performance, including management's discussion and analysis, readers are encouraged to review Conavi Medical's filings on SEDAR+ and on the company's website.

Fiscal Q3 2026 business and operational highlights

FDA 510(k) clearance of next-generation hybrid imaging system

On April 20, 2026, Conavi received U.S. Food and Drug Administration (FDA) 510(k) clearance for its next-generation Novasight Hybrid intravascular imaging system. The system combines intravascular ultrasound (IVUS) and optical coherence tomography (OCT) to enable simultaneous and co-registered imaging of coronary arteries within a single workflow.

Following clearance, Conavi has focused on completing transfer to production and preparing for a targeted market release at United States hospitals in calendar H2 2026. Commercial readiness activities include manufacturing readiness, reliability studies, early inventory build and finalization of production transfer documentation.

$1.25-million Ontario Life Sciences Scale-Up Fund Milestone Payment

On June 29, 2026, Conavi received a $1.25-million milestone payment from the Province of Ontario through the Life Sciences Scale-Up Fund (LSSUF). The payment was triggered by the company's achievement of U.S. FDA 510(k) clearance.

Including this payment, Conavi has received $1.75-million under the program to date and remains eligible to receive additional funding under the agreement, which provides for up to $2.5-million based on the achievement of specified milestones. Funding under the program is intended to support commercialization initiatives, manufacturing scale-up and other eligible costs associated with the launch of Conavi's hybrid imaging system.

Peer-reviewed publication adds to clinical evidence supporting hybrid IVUS-OCT imaging

On July 8, 2026, subsequent to quarter-end, Conavi announced the publication of a case report in the Journal of the Society for Cardiovascular Angiography & Interventions (JSCAI) titled "Versatility of Hybrid OCT and IVUS Imaging Enhances Contrast-Sparing Management of Eruptive Calcified Nodules."

The case report featured Conavi's hybrid IVUS-OCT imaging system in a complex coronary procedure involving a patient with impaired renal function and demonstrated how the complementary information provided by IVUS and OCT supported lesion assessment, treatment planning, stent optimization and management of contrast use. The authors concluded that hybrid IVUS-OCT imaging may play an important role in patients with challenging plaque morphology, particularly in the setting of chronic kidney disease. Management believes the publication adds to the growing body of clinical evidence demonstrating the potential utility of having both IVUS and OCT available through a single hybrid imaging platform.

Closed $10-million public offering to support U.S. commercialization

On Aug. 12, 2026, subsequent to quarter-end, Conavi closed its previously announced public offering for aggregate gross proceeds of $10-million. The company intends to use the net proceeds to support a targeted market release of its hybrid IVUS OCT system in the United States, as well as for working capital and general corporate purposes.

Outlook

With FDA 510(k) clearance secured and the $10-million financing completed subsequent to quarter-end, Conavi is focused on executing its U.S. commercialization strategy. Near-term priorities include completing transfer to production, building initial inventory, initiating a targeted market release at U.S. hospitals and continuing to build clinical evidence supporting adoption of hybrid IVUS-OCT imaging.

About Conavi Medical Corp.

Conavi Medical is focused on designing, manufacturing and marketing imaging technologies to guide common minimally invasive cardiovascular procedures. Its patented Novasight Hybrid platform combines intravascular ultrasound (IVUS) and optical coherence tomography (OCT) into a single system, enabling simultaneous and co-registered imaging of coronary arteries. Conavi has received U.S. Food and Drug Administration (FDA) 510(k) clearance for its next-generation hybrid intravascular imaging system and is advancing preparations for commercialization in the United States.

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