Opsens : Annual Information Form

OPSENS INC.

ANNUAL INFORMATION FORM

FOR THE FISCAL YEAR ENDED AUGUST 31, 2021

November 22, 2021

			TABLE OF CONTENTS
1.	PRELIMINARY COMMENTS AND FORWARD-LOOKING STATEMENT	............... 4
2.	CORPORATE STRUCTURE ....................................................................................	5
	2.1	Name, Address, and Incorporation ............................................................	5
	2.2	Intercorporate Relationship........................................................................	6
3.	GENERAL DEVELOPMENT OF THE BUSINESS ...................................................	6
	3.1	Three-Year History ......................................................................................	7
4.	DESCRIPTION OF THE BUSINESS ......................................................................	11
	4.1	General.......................................................................................................	11
		A)	Summary...........................................................................................	12
		B)	Production and Services .................................................................	15
		C)	Specialized Skill and Knowledge ....................................................	16
		D)	Competitive Conditions ...................................................................	16
		E)	New Products ...................................................................................	17
		F)	Components .....................................................................................	18
		G)	Intangible Properties........................................................................	18
		H)	Cycles ...............................................................................................	19
		I)	Economic Dependence ....................................................................	20
		J)	Changes to contracts.......................................................................	20
		K)	Environmental Protection................................................................	20
		L)	Employees ........................................................................................	20
		M)	Foreign Operations ..........................................................................	21
		N)	Lending .............................................................................................	21
	4.2	Risk Factors...............................................................................................	21
5.	DIVIDENDS AND DIVIDEND POLICY ...................................................................	43
6.	GENERAL DESCRIPTION OF THE CAPITAL STRUCTURE ................................	43
	6.1	Common Shares........................................................................................	43

6.2 Stock Options Issued under the Corporation's Stock Option Plan

		....................................................................................................................	43
7.	MARKET FOR SECURITIES..................................................................................	45
	7.1	Market ........................................................................................................	45
	7.2	Trading Price and Volume ........................................................................	46
8.	PRIOR SALES .......................................................................................................	47
9.	ESCROWED SECURITIES ....................................................................................	47
10.	DIRECTORS AND OFFICERS ...............................................................................	47
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	10.1	Name, Occupation and Security Holding.................................................	47
	10.2	Cease Trade Orders, Bankruptcies, Penalties or Sanctions ..................	52
	10.3	Conflicts of Interests.................................................................................	53
11.	AUDIT COMMITTEE ..............................................................................................	54
	11.1	The Audit Committee's Charter ................................................................	54
	11.2	Composition of the Audit Committee ......................................................	54
	11.3	Relevant Education and Experience ........................................................	54
	11.4	Audit Committee Oversight ......................................................................	54
	11.5	Reliance on Certain Exemptions ..............................................................	54
	11.6	Pre-Approval Policies and Procedures....................................................	54
	11.7	External Auditor Service Fees..................................................................	55
12.	LEGAL PROCEEDINGS AND REGULATORY ACTIONS .....................................	55

13. INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL

	TRANSACTIONS ...................................................................................................	55
14.	TRANSFER AGENT AND REGISTRAR ................................................................	56
15.	MATERIAL CONTRACTS ......................................................................................	56
16.	INTERESTS OF EXPERTS ....................................................................................	56
17.	ADDITIONAL INFORMATION................................................................................	56
SCHEDULE "A".............................................................................................................	A-1

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1. PRELIMINARY COMMENTS AND FORWARD-LOOKINGSTATEMENT

In this annual information form ("Annual Information Form") unless otherwise indicated or the context suggests otherwise, references to the "Corporation" and "OpSens" are to OpSens Inc., together with its subsidiaries OpSens Solutions (as defined herein) and OpSens Medical (as defined herein).

This Annual Information Form contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-lookingstatements") which are based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. Such statements can be identified by the use of forward-looking terminology such as "expect," "believe", "plan", "project", "assume", "likely", "may," "will," "should," "intend," or "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. No assurance can be given that the expectations in any forward-looking statement will prove to be correct and, as such, the forward-looking statements included in this Annual Information Form should not be unduly relied upon. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Such forward-looking statements are made as of the date of this Annual Information Form. Forward-looking statements in this Annual Information Form include, but are not limited to, statements with respect to:

• the general economic conditions associated with the current outbreak of the novel coronavirus known as COVID-19;
• the competitive and business strategies of the Corporation;
• the Corporation's development activities and production plan;
• the competitive conditions of the industry;
• the future outlook;
• whether the Corporation will have sufficient working capital and its ability to raise additional financing required in order to develop its business and continue operations;
• the applicable laws, regulations and any amendments thereof;
• the anticipated future gross margins of the Corporation's operations;
• the performance of the Corporation's business and operations;
• the ability of the Corporation to obtain and maintain regulatory authorizations to market its product;
• the ability of the Corporation to protect its intellectual property;
• the ability of the Corporation to obtain sufficient quantities of raw materials when needed;
• the ability of the Corporation to attract and retain skilled staff;
• the ability of the Corporation to complete research and development work;
• the annual growth in the FFR (as defined herein) market;
• the ability of the Corporation to commercialize the SavvyWire (as defined herein);
• the ability of the Corporation to continue the development of the OEM (as defined herein) business segment;
• the success of the OptoWire (as defined herein), its guidewire measuring FFR and dPR (as defined herein).

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Forward-looking statements are based on reasonable assumptions that have been made by the Corporation as at the date of such statements and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements, and those factors discussed in the section entitled "Risk Factors" in this Annual Information Form. Forward-looking statements contained in certain documents incorporated by reference in this Annual Information Form are based on the key assumptions described in such documents.

Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. 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. The Corporation does not undertake to update any forward-lookingstatements that are included in this Annual Information Form except in accordance with applicable securities laws.

2. CORPORATE STRUCTURE

2.1 Name, Address, and Incorporation

The Corporation was incorporated under the Part IA of the Companies Act (Québec) by articles of incorporation dated as of February 22, 2006, under the name "DCB Capital Inc." and its French version "Capital DCB inc."

In connection with its qualifying transaction pursuant to the TSX Venture Exchange (the "TSXV") policies, the Corporation changed its name for "OpSens Inc." on October 3, 2006, and amalgamated with 9174-3369 Québec Inc. on October 4, 2006.

The Corporation has been governed by the Business Corporations Act (Québec) (the "QBCA") since it replaced on February 14, 2011, the provisions of the Companies Act (Québec) relating to the incorporation and operation of business corporations.

To benefit from the provisions of section 153 of the QBCA, the Corporation amended its articles on February 6, 2012, to allow the directors of the Corporation to appoint one or more additional directors to hold office for a term expiring not later than the close of the next annual shareholders meeting, provided that the total number of directors so appointed may not exceed one third of the number of directors elected at the previous annual shareholders meeting.

On February 28, 2017, the Corporation received final approval of the listing of the Corporation's common shares ("Common Shares") on the Toronto Stock Exchange ("TSX"). The Common Shares commenced trading on the TSX on March 1, 2017, at market opening, under the symbol "OPS." In addition to listing on the TSX, the Common Shares were voluntarily delisted from the TSXV prior to the commencement of trading on March 1, 2017.

The Corporation's head and registered office is located at 750 boulevard du Parc- Technologique, Québec (Québec) G1P 4S3.

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