Kane Biotech Announces New Private Placement Offering

• Financing Announcement: Kane Biotech announced a non-brokered private placement offering of up to 20,000,000 units.
• Offering Terms: Units priced at $0.05 each, targeting gross proceeds of up to $1,000,000.
• Unit Structure: Each unit includes one common share and one warrant exercisable for 18 months at $0.06 per share.
• Call Provision: Warrants can be called if shares trade above $0.09 for five consecutive days after four months, forcing exercise within 30 days.
• Insider Participation: Certain insiders may participate in the offering.
• Closing Timeline: Expected to close in the coming days following TSX Venture Exchange approval.
• Hold Period: Shares subject to a four-month and one-day hold period.

• Liquidity Extension: The company raised $901,698 as of December 31, 2025. This new offering aims to raise an additional $1M, extending cash runway by approximately 6-9 months given the current burn rate and low revenue.
• Dilution Risk: Issuing up to 20 million units represents significant dilution for existing shareholders. The offering price ($0.05) is significantly higher than the recent trading price ($0.03), suggesting reliance on insider commitment or strategic investors willing to pay a premium, which may be difficult to close without strong insider backing.
• Revenue Context: Full Year 2025 revenue collapsed to $427,869 from $2,080,879 in FY 2024. The financing is necessary due to this operational contraction rather than aggressive growth expansion.
• Market Sentiment: Frequent financings (Nov 2025, Dec 2025, May 2026) indicate a persistent cash burn issue and lack of organic revenue generation sufficient to cover operating expenses ($2.6M in FY 2025).
• Warrant Overhang: New warrants add $1.2M potential equity value (20M units * $0.06 exercise price), creating future selling pressure if exercised or called.

• Company: Kane Biotech Inc., focused on antimicrobial wound care solutions.
• Flagship Product: revyve® Antimicrobial Wound Gel, Spray, and Cleanser.
• Technology: Thermoreversible gel technology designed to normalize chronic wound pH and eradicate biofilms (S. aureus, P. aeruginosa).
• Regulatory Status: FDA 510(k) cleared for Gel, Spray, and Cleanser in the U.S.; Health Canada approved for Gel and Spray.
• Commercialization Stage: Transitioning from clinical validation to commercial sales; initial shipments under new partnerships commenced Q2 2026.
• Strategy: Three-pillar approach focusing on case series data, scientific publications, and rebuilding U.S. distributor networks (VA, DOD, IHS channels).