ChitogenX Inc. announced a best-efforts private placement of 19,333,333 units at an issue price of CAD 0.225 per unit for gross proceeds of up to CAD 4,349,999.925, and non-brokered private placement issue up to 7,777,777 units at an issue price of CAD 0.225 per unit for gross proceeds of up to CAD 1,749,999.825 on February 9, 2023. Each unit will consist of one class A share of the company and one share purchase warrant of the company. Each warrant will entitle the holder to purchase one share of the company at a price of CAD 0.35 per warrant share at any time on or before the date which is 60 months after the closing date of the offering, subject to adjustment in certain events.

If, at any time following the date that is 6 months following the closing date, the daily volume weighted average trading price of the shares on the Canadian Securities Exchange is greater than CAD 0.50 per share for the preceding 10 consecutive trading days, the company shall have the right to accelerate the expiry date of the warrants to a date that is at least 30 days following the date of such notice to holders of warrants. The company has granted the agents an option to arrange for the sale of up to an additional 15% of the units at the issue price. The agent's option may be exercised in whole or in part at any time up to 48 hours prior to the closing date, subject to limitations prescribed by the LIFE exemption.

The best-efforts private placement and non-brokered private placement is scheduled to close on or around February 28, 2023, and is subject to certain conditions including, but not limited to, receipt of all necessary approvals including satisfaction of listing conditions of the Canadian Securities Exchange. The closing of the best-efforts private placement is conditional upon the closing of the non-brokered private placement.