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VANCOUVER, BC – October 30, 2020 – Izotropic Corporation (“Izotropic” or the “Company”) (CSE: IZO) (OTC US: IZOZF) (FSE: 1R3) – Further to the Company’s News Release of October 20, 2020, the Company is pleased to announce that it has completed the second and final tranche of its non-brokered private placement financing (the “Offering”), whereby the Company issued 2,866,334 units (each, a “Unit”) at a price of $0.55 per Unit for gross proceeds of $1,576,483.70. The Company received an aggregate of $4,060,870 from the first and second tranche of the Offering.

Each Unit consists of one common share and one transferable warrant (each, a “Warrant”), and each Warrant entitles the holder to purchase one additional share at a price of $0.75 per share for a period of two years from closing of the Offering, subject to the Acceleration Right (as defined below) such that:

1. at any time after the date that is four months and one day after the issue date of the Warrants, if, for at least ten (10) consecutive trading days, the closing price at which the Shares trade on the Canadian Securities Exchange (the “Exchange”) each day exceeds $1.25 per Share, the Company may issue a notice (the “Acceleration Notice”) to the holder (which Acceleration Notice will be given to the holder by the Company by disseminating a press release) to accelerate the expiry date of the Warrants (the “First Acceleration Right”);
2. 50% of the then unexercised Warrants will terminate on the date that is thirty (30) days from the date of the Acceleration Notice in the event that the holder has not exercised the Warrants in accordance with the terms of the Acceleration Notice by such date;
3. at any time after the date that is four months and one day after the issue date, if, for at least ten (10) consecutive trading days, the closing price at which the Shares trade on the Exchange each day exceeds $1.75 per Share, the Company may issue a notice (the “Second Acceleration Notice”) to the holder (which Second Acceleration Notice will be given to the holder by the Company by disseminating a press release) to accelerate the expiry date of the Warrants (the “Second Acceleration Right” and together with the First Acceleration Right, the “Acceleration Right”), and
4. 50% of the then outstanding Warrants will terminate on the date that is thirty (30) days from the date of the Second Acceleration Notice in the event that the holder has not exercised the Warrants in accordance with the terms of the Second Acceleration Notice by such date.

The use of proceeds from the Offering will be used for final engineering and product development of the Company’s first commercial breast CT unit, production of commercial units, the initial FDA study; and general working capital.

The Company paid an aggregate of $112,242.06 and issued and aggregate of 182,701 broker warrants in connection with the closing of the first and second tranche of the Offering. Each broker warrant will entitle the holder to purchase one additional share at a price of $0.55 per share for a period of two years from closing of the respective tranche.

All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.

ON BEHALF OF THE BOARD

Robert Thast
Chief Executive Officer

About Izotropic Corp.
Izotropic Corporation and its wholly owned U.S. operating subsidiary, Izotropic Imaging Corp. have been established to commercialize the next generation of breast imaging technology for early diagnosis of breast cancer. The Izotropic Breast CT Imaging System produces high resolution breast images in 3D. A single 10 second breast CT scan acquires approximately 500 images, without painful breast compression, providing radiologists with fully 3D viewing of the scanned breast.
Mammography scanning requires compression of the breast between 2 imaging plates, resulting in 2D images.

The Company has the exclusive worldwide license from the University of California, Davis (UC Davis) to commercialize the technology developed by principal founder and Company director Dr. John M. Boone and researchers at UC Davis. The license includes all intellectual property, trade secrets, patents and patent-pending applications that are the foundation of the Company’s breast CT imaging platform.

Approximately $20 million in research funding and over 15 years of research and development have been invested in developing this groundbreaking breast CT imaging technology. Research includes a current, ongoing $2.9M U.S. clinical trial at UC Davis Medical Center.

The Company founders believe that this technology will be a disruptive entry to the market, overcoming many of the challenges faced by existing breast imaging modalities.