Mr. Cameron Groome reports

MICROBIX RECEIVES $2.4 MILLION FROM EXERCISE OF WARRANTS

Microbix Biosystems Inc. has received $2.4-million in new equity capital from the partial exercise of expiring share purchase warrants.

The warrants were issued in connection with a private placement undertaken in January, 2020, and had an exercise price of 36 cents and a five-year term. Originally, 12,321,000 of the 2020 warrants were issued and 8,881,564 of the 2020 warrants remained unexercised at Sept. 30, 2024. A total of 6,703,314 of those remaining 2020 warrants have now been exercised, representing 75.5 per cent of the remaining warrants and providing $2.4-million of additional equity capital to Microbix.

Microbix intends to use this additional capital to broaden its product development capabilities, to expand its manufacturing capacity and to make more improvements to the efficiency of its operations. A portion of the proceeds may also be used to reduce debt or, when judged to be appropriate, to finance additional share repurchases under Microbix's previously disclosed normal course issuer bid (NCIB).

A total of 1.45 million of the remaining 2020 warrants were exercised by insiders. After the addition of all new shares resulting from 2020 warrant exercises, Microbix has 142,326,164 common shares outstanding. There are no further Microbix warrants outstanding following the expiry of this series. Microbix's cash and equivalents balance stands at over $15-million after the exercise of these remaining 2020 warrants.

Cameron Groome, chief executive officer and president of Microbix, stated: "We greatly appreciate the confidence that our shareholders are demonstrating by exercising their expiring warrants to purchase common shares. We will appropriately deploy the additional equity capital that they are committing. Such new equity capital will be used to create further value for our shareholders by helping enable Microbix to realize still greater sales, achieve better gross margins and attain higher net earnings."

Jim Currie, chief financial officer of Microbix, also commented: "With these warrant exercises, Microbix now has a current ratio of over 7.0 times and a debt-to-equity ratio of approximately 0.30. This financial strength helps demonstrate to current and prospective customers that we are a reliable long-term partner and should thereby accelerate the growth of our business. Among other matters, our available funds and ongoing positive cash flow are being used to add new product development capabilities, manufacturing capacity and sophistication, and to implement optimal use of our eQMS and ERP [enterprise resource planning] systems."

About Microbix Biosystems Inc.

Microbix Biosystems creates proprietary biological products for human health, with over 120 skilled employees and sales now targeting $2-million or more per month. It makes and exports a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers while QAPs are sold to clinical lab accreditation organizations, diagnostics companies and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 and ISO 13485 accredited, U.S. Food and Drug Administration registered, Australian Therapeutic Goods Administration registered, and Health Canada establishment licensed, and it provides IVDR-compliant (In Vitro Diagnostic Regulation) CE-marked (Conformite Europeenne) products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (for example, its DxTM for patient-sample collection). Microbix is traded on the Toronto Stock Exchange and the OTCQX and is headquartered in Mississauga, Ont., Canada.

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