Sona Establishes an At-The-Market Common Share Offering

Halifax, Nova Scotia–(Newsfile Corp. – April 9, 2021) – Sona Nanotech Inc. (CSE: SONA), (OTCQB: SNANF) (the “Company” or “Sona“) a developer of rapid, point-of-care diagnostic tests announces that pursuant to an equity distribution agreement (the “Equity Distribution Agreement“) with Canaccord Genuity Corp., the Company may, from time to time, sell up to $10 million of common shares (“Common Shares“) in the capital of the Company (the “ATM Offering“). The Company intends to use the net proceeds of the ATM Offering, if any, principally for general corporate and working capital requirements, funding ongoing operations (including research and development), to repay indebtedness outstanding from time to time or for other corporate purposes.

Under the ATM Offering, Common Shares will be distributed at trading prices prevailing at the time of the sale. As such, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company’s management and in accordance with the terms of the Equity Distribution Agreement. As of the date of this release, no Common Shares have been distributed by the Company under the ATM Offering or pursuant to the Equity Distribution Agreement.

Sales of Common Shares, if any, under the ATM Offering are anticipated to be made in transactions that are deemed to be “at-the-market distributions” as defined in National Instrument 44-102 – Shelf Distributions, as sales made directly on the Canadian Securities Exchange or any other recognized Canadian “marketplace” within the meaning of National Instrument 21-101 – Marketplace Operation. The ATM Offering is being made pursuant to a prospectus supplement dated April 9, 2021 (the “Prospectus Supplement“) to the Company’s short form base shelf prospectus dated March 31, 2021 (the “Base Shelf Prospectus“), filed with the securities regulatory authorities in each of the provinces and territories of Canada.

A copy of the Prospectus Supplement (as well as the related Base Shelf Prospectus) can be found on SEDAR at www.sedar.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Investor Relations Contact:

Arlen Hansen
604 684 6730 | 1 866 684 6730
arlen@kincommunications.com

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 Nanotech’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 FDA.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CANADIAN SECURITIES EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain “forward-looking statements” under applicable Canadian securities legislation, including statements regarding Sona’s sale of Common Shares from time to time, the amount of Common Shares that could be distributed as part of an “at-the-market distribution” and the Company’s planned use of proceeds therefrom. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements, including the risk of the failure of the Company to complete the transactions contemplated herein as proposed on a timely basis or at all, the lack of financing opportunities or favourable market conditions, Sona may not be successful in obtaining additional data necessary for regulatory approvals, or in obtaining required approvals once additional data is available, that potential customers may not adopt its products, that Sona’s saliva test technology may not prove to deliver the same level of testing accuracy and sensitivity as its nasopharyngeal swab-based test, that Sona may not be successful in identifying or reaching agreements with additional manufacturing partners, that Sona’s manufacturing partners are not able to scale up manufacturing of Sona’s products to the anticipated level, that raw materials may not be available in the amounts or on the schedules required to achieve Sona’s manufacturing targets, that Sona may not be able to obtain further clinical data, that Sona may not re-submit to the FDA and Health Canada, and that regulatory requirements may change. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sona disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Not for distribution to United States newswire services or for dissemination in the United States.

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