In connection with the Public Offering, the Company also closed the
Concurrent Private Placement of 9,118,184 Common Shares and 3,381,816 Exchangeable Subscription Receipts, in each case, at the Offering Price, for US$12,500,000 aggregate gross proceeds, less a capital commitment fee of 1.5% payable to
Investissement Québec and Investissement Québecs legal fees. The component of the Concurrent Private Placement in the form of Exchangeable Subscription Receipts is designed to ensure that, following completion of the Public
Offering and the Concurrent Private Placement, Investissement Québec does not have beneficial ownership or control over more than 19.9% of the issued and outstanding Common Shares and therefore is not a control person within
applicable Canadian securities laws. All securities issued in connection with the Concurrent Private Placement are subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other
restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
The Company also entered into
an investor rights agreement, pursuant to which Investissement Québec will be entitled to nominate one director to the Companys board of directors for as long as it holds 50% of the Common Shares purchased pursuant to the Concurrent
Private Placement. Copies of the subscription agreement, the exchangeable receipt agreement setting forth the terms and conditions of the Exchangeable Subscription Receipts and the investor rights agreement, when available, will be filed on SEDAR+
at www.sedarplus.ca. Summaries of the subscription agreement and the exchangeable receipt agreement and a copy of the investor rights agreement, when available, will be filed on EDGAR at www.sec.gov.
As at the date of the material change, Investissement Québec beneficially owns approximately 19.9% (25.4% if the
Exchangeable Subscription Receipts were to be exchanged into Common Shares) of the issued and outstanding Common Shares. If the Option is exercised in full, Investissement Québec will beneficially own approximately 19.1% (24.5% if the
Exchangeable Subscription Receipts were to be exchanged into Common Shares) of the issued and outstanding Common Shares as of the date of closing.
Forward-Looking Information
This document contains forward-looking statements and forward-looking information, or, collectively, forward-looking
statements, within the meaning of applicable securities laws, that are based on our managements beliefs and assumptions and on information currently available to our management. You can identify forward-looking statements by terms such as
may, will, should, could, promising, would, outlook, believe, plan, envisage, anticipate, expect and
estimate, or the negatives of these terms, or variations of them. The Forward-Looking Statements contained in this material change report include, but are not limited to, statements regarding the exercise of the Option.
Although the Forward-Looking Statements contained in this material change report are based upon what the Company believes are
reasonable assumptions in light of the information currently available, investors are cautioned against placing undue reliance on these statements since actual results may vary from the Forward-Looking Statements. Forward-Looking Statements
assumptions are subject to a number of risks and uncertainties, many of which are beyond the Companys control, that could cause actual results to differ materially from those that are disclosed in or implied by such Forward-Looking Statements.
These, as well as other, risks and uncertainties are described more fully in the section titled Risk Factors of the preliminary Prospectus Supplement and of the Base Shelf Prospectus in connection with the Public Offering as well as
other public filings made by the Company available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on Forward-Looking
Statements. Forward-Looking Statements reflect current expectations regarding future events and speak only as of the date of this press release and represent the Companys expectations as of that date. The Company undertakes no obligation to
update or revise the information contained in this material change report, whether as a result of new information, future events or circumstances or otherwise, except as may be required by applicable law.
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