On January 4, 2022, DIRTT Environmental Solutions Ltd. provided an update regarding the requisition made by 22NW Fund, LP and reiterates that notwithstanding its concerns regarding 22NW Fund's conduct, the committee of its independent directors tasked with reviewing and considering the requisition remains committed to engaging in discussions with 22NW Fund regarding this unnecessary proxy fight. The Company stated that it has raise significant concerns regarding whether 22NW has complied with various disclosure and reporting obligations under Canadian and US securities laws. The Company has also raised these issues with the Alberta Securities Commission, including apparent breaches by 22NW Fund of certain provisions under the alternative monthly reporting regime of Canadian securities laws.

The Company stated that its Board is raising concerns about 22NW Fund's activities and disclosures because they raise fundamental issues with respect to the protection of the Company's minority shareholders and the equal treatment of its shareholders, and in order to ensure that shareholders have accurate and complete information to make informed decisions.