DIAGNOS Inc. announced a non-brokered private placement of 5 units at an issue price of CAD 50,000 per unit for the gross proceeds of CAD 250,000 on January 13, 2023. Each unit consists of one unsecured convertible debenture and 50,000 stock warrants. Each Warrant entitles the holder to purchase one Share at a price of CAD 0.26 per Share, for a period of 18 months ending July 13, 2024.

Each Debenture has a term of 36 months ending January 13, 2026 and bears interest at the annual rate of 10%. At the option of the holder of the Debenture, the principal amount of the Debenture may be converted, at any time during the Term, into common shares of the Corporation at a price of CAD 0.22 per Share. Any accrued interest on the principal, at time of conversion, will be immediately payable in cash.

250,000 Warrants have been issued as part of the transaction. . If, at any time following May 14, 2023, the daily volume weighted average trading price of the Shares is or exceeds CAD 0.40 for 15 consecutive trading days, the company shall have the option to accelerate the expiry of the Warrants.

If the company chooses to exercise the acceleration right, the new expiry date of the Warrants will be the 30th day following the notice of such exercise. In connection with the closing of the transaction, the company paid a cash commission of CAD 12,500 to one qualified firm acting at arm's length, Optimista consulting services Inc. All securities issued as part of the Private Placement are subject to a statutory hold period ending May 14, 2023. The transaction is subject to receipt of all required approvals, including the approval of the TSX Venture Exchange, as well as full receipt of funds and execution of formal documentation.

The company has raised 1,100,000 units so far. The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement. The transaction included participation from one placee.