QI Materials Announces Update to Listed Issuer Financing Exemption (LIFE) Non-brokered Private Placement of Units

Montreal, Quebec–(Newsfile Corp. – May 7, 2024) – Quebec Innovative Materials Corp. (CSE: QIMC) (FSE: 7FJ) (“QI Materials“, “QIMC” or the “Company“), would like to provide an update to its previously-announced (see April 29, 2024 press release) non-brokered private placement of up to 17,500,000 units (the “Units“) of the Company at a price of $0.03 per Unit for gross proceeds to the Company of up to $525,000 (the “Offering“). Following the announcement, the Company received unsolicited interest from Quebec resident investors, including Mr. John Karagiannidis, the President and CEO of the Company, to participate in the private placement. Accordingly, the Board of Directors of QI Materials agreed to consider subscription offers from Mr. Karagiannidis and certain other Quebec residents to subscribe for Units in reliance upon the “accredited investor” prospectus exemption set out in Quebec Regulation 45-106 respecting Prospectus Exemptions.

Mr. Karagiannidis has offered to subscribe for 1,958,334 Units, representing gross proceeds to the Company of $58,750, and the other Quebec resident “accredited investors” have offered to subscribe for an aggregate of 1,166,666 Units, representing gross proceeds to the Company of $35,000.

Accordingly, the Units offered as a part of the Offering will be offered (i) to Mr. Karagiannidis and certain other Quebec residents pursuant to the “accredited investor” prospectus exemption set out in Quebec Regulation 45-106 respecting Prospectus Exemptions, and (ii) to purchasers resident in all provinces of Canada, except Quebec, pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “Listed Issuer Financing Exemption“). The Company now expects to issue up to an aggregate of 14,375,000 Units for maximum aggregate gross proceeds of $431,250 under the Listed Issuer Financing Exemption. The Units offered under the Listed Issuer Financing Exemption will not be subject to resale restrictions pursuant to applicable Canadian securities laws. All other securities issued pursuant to the Offering, including the Units which may be distributed to Mr. Karagiannidis and certain other Quebec residents, will be subject to the statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws.