Kovo HealthTech Corporation announced that it has entered into definitive investment agreement and a non brokered private placement of 17,600,000 units at a price of CAD 0.25 per unit for gross proceeds of CAD 4,400,000 on March 22, 2023. Each unit shall consist of one common share of the company, and one-half of one transferable common share purchase warrant, exercisable to acquire an additional common share at CAD 0.40 for a period of twenty-four months. The transaction will include participation from Avonlea Ventures #2 Inc. The transaction will be made pursuant to the terms of a definitive investment agreement to be finalized and executed by the parties and containing customary terms and conditions, including representations and warranties, as well as conditions and covenants of the parties suitable for a transaction of this nature and scope, including all necessary TSX Venture Exchange, shareholder and other regulatory approvals.

As of the date hereof, there are 40,006,156 common shares issued and outstanding. Upon completion of the transaction, Avonlea Ventures #2 Inc will own or beneficially control 17,600,000 common shares, which represents approximately 30.6% of the post closing common shares outstanding on a basic basis or 39.8% of the outstanding post closing common shares on a partially diluted basis and assuming exercise of the warrants. All securities to be issued in connection with the transaction will be subject to a four month and one day statutory hold period.