Halifax, Nova Scotia--(Newsfile Corp. - September 28, 2018) - Sona Nanotech Inc. (TSXV: SPT) ("Sona" or the "Company") further to the Company's press releases dated September 18, 2017 and March 26, 2018, Sona is pleased to announce that it
has completed the amalgamation of its predecessor companies, Stockport Exploration Inc. and Sona Nanotech Ltd. to form "Sona
Nanotech Inc." as a federally amalgamated corporation, as more particularly described below under the heading, "The
Amalgamation".
Sona has reduced the pricing of the previously private placement of common shares of the Company from $0.40 per share to $0.25
per share. The Company has now completed this private placement of its common shares at $0.25 per share to raise gross proceeds of
$2,000,000, by the issuance of 8,000,000 common shares (the "Offering"). In connection with the Offering, the Company has
paid $150,000 in finder's fees and issued finder's share purchase warrants to Numus Capital Corp., a private company controlled by
a director and consultant to Sona, for the right to purchase up to 600,000 common shares at an exercise price of $0.25 per share
until September 27, 2020. The net proceeds from the Offering will be used by Sona to fund its business development and for general
working capital.
Overview of Sona
Sona is a nano technology life sciences firm that has developed two proprietary methods for the manufacture of rod shaped gold
nanoparticles. The principal business carried out and intended to be continued by Sona is the research and development of its
proprietary technology for use in multiplex diagonostic testing platforms that will improve performance over existing tests in the
market.
Sona'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 nano technologies may be adapted for use
in applications, as a safe and effective delivery system for multiple medical treatments, pending the approval of various
regulatory boards including Health Canada and the FDA.
The Amalgamation
Pursuant to the terms of the Amalgamation, every four (4) common shares of Stockport were exchanged for one (1) common share of
Sona (the "Sona Shares"); and every 1.5802 common shares of Sona Nanotech Ltd. were exchanged for one (1) Sona Share.
The amalgamation was completed on August 8, 2018.
The Company voluntarily delisted its common shares from the TSX Venture Exchange on August 7, 2018, and proposes to file an
application for listing its common shares on the Canadian Securities Exchange ("CSE"). The Company received conditional
approval for the CSE listing on July 27, 2018, and listing on the CSE is subject to the Company fulfilling all listing
requirements.
For More Information
For more information about Sona, please contact:
Darren Rowles
President and Chief Executive Officer
Telephone: (902) 442-0653
Email: darren@sonanano.com
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect
the Company's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in
this press release includes information relating to the use of proceeds from the Offering, and the implementation of Sona's
business plan. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that
may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements, or other future events, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the
following risks: risks associated with the marketing and sale of securities, the need for additional financing, reliance on key
personnel, the potential for conflicts of interest among certain officers or directors, and the volatility of the Company's common
share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that
statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking
statements.
There are a number of important factors that could cause the Company's actual results to differ materially from those indicated
or implied by forward-looking statements and information. Such factors include, among others, risks related to Sona's proposed
business, such as failure of the business strategy and government regulation; risks related to Sona's operations, such as
additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition,
intellectual property and reliable supply chains; risks related to Sona and its business generally, such as infringement of
intellectual property rights and conflicts of interest. The Company cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking statements and information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will
not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the
actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any
particular time.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF
THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES
NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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