CoTec Holdings Corp. Announces Initial Closing of Non-Brokered Private Placement - Seite 2

All securities issued to investors in connection with the Private Placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation in Canada.

Early Warning Report

This press release is also being disseminated as required by National Instrument 62-103 - The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report by Kings Chapel in respect of its ownership position in the Corporation.

Kings Chapel participated in the Initial Closing and purchased an aggregate of 4,000,000 Units. Prior to the Initial Closing, (i) Kings Chapel owned or controlled 22,666,307 Common Shares representing approximately 37.22% of the 60,901,506 issued and outstanding Common Shares, and (ii) Julian Treger owned or controlled 2,708,500 Common Shares representing approximately 4.45% of the issued and outstanding Common Shares as well as 3,011,325 options to purchase Common Shares.

Immediately following the Initial Closing, (ii) Kings Chapel owned or controlled 26,666,307 Common Shares representing approximately 41% of the 65,042,531 issued and outstanding Common Shares as well as 4,000,000 warrants to purchase Common Shares, and (ii) Julian Treger owned or controlled 2,708,500 Common Shares representing approximately 4.16% of the issued and outstanding Common Shares as well as 3,011,325 options to purchase Common Shares.

Kings Chapel and Mr. Treger hold Common Shares for investment purposes. Each of them has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. Depending on market conditions, general economic, and industry conditions, the Company's business and financial condition, and/or other relevant factors, each such shareholder may develop such plans or intentions in the future.

A copy of the Early Warning Report to be filed by Kings Chapel in connection with the transactions described above will be available on the Corporation's SEDAR+ profile at www.sedarplus.ca.

The head office of the Corporation is located at Suite 428, 755 Burrard Street, Vancouver, BC V6Z 1X6. Kings Chapel's address is No. 2 The Forum, Grenville Street, St. Helier, Jersey JE1 4HH.