Dechra Veterinary Products, Inc. signed a non-binding offer to acquire 66.66% stake in STEM Animal Health Inc. from Kane Biotech Inc. (TSXV:KNE) on December 19, 2023. Dechra Veterinary Products, Inc. signed a definitive agreement to acquire 66.66% stake in STEM Animal Health Inc. from Kane Biotech Inc. (TSXV:KNE) for $8.8 million on April 11, 2024. In connection with the Transaction, but not included in the net amount of the sale, Kane Biotech will be eligible for a $750,000 sales-based milestone payment and will also be entering into product development and transitional manufacturing agreements with STEM. The terms of the offer remain confidential but specify that Kane will sell its ownership of STEM. In addition, pursuant to the terms of the offer, Kane will receive a deposit in the amount of $625,000 which will be applied towards the sale price of Kane?s interest in STEM. The parties have agreed to collaborate using their best efforts to enter into a binding share purchase agreement with respect to the sale of STEM within 90 days. In addition, the Company and Pivot Financial I Limited Partnership (?Pivot?) have agreed, to extend the term of the Company?s amended credit agreement between the Company and Pivot dated September 11, 2023, by extending the maturity date of the credit facility from November 30, 2023 to March 31, 2024. The proposed sale of Kane?s interest in STEM and the Proposed Amended Credit Facility are both subject to the execution of definitive transaction documents and the receipt of any necessary approvals, including the approval of the TSX Venture Exchange and, potentially, shareholder approval. As of December 20, 2023, Kane and Pivot I Financial Limited Partnership entered into a definitive agreement to amend the terms of the Company?s amended and restated credit facility. The amendment to the Credit Facility remains subject to the final approval of the TSX Venture Exchange.

Dechra Veterinary Products, Inc. completed the acquisition of 66.66% stake in STEM Animal Health Inc. from Kane Biotech Inc. (TSXV:KNE) on April 15, 2024. The Transaction has received the approval of a majority of Kane?s shareholders and the conditional approval of the TSX Venture Exchange. The Transaction remains subject to the final approval of the TSX Venture Exchange. In connection with the Transaction, Research Capital Corporation acted as Kane?s financial advisor and was paid an advisory fee of approximately $0.08712 million (CAD 120,000).