An undisclosed buyer signed a non-binding offer to acquire an unknown entire stake in STEM Animal Health Inc. from Kane Biotech Inc. (TSXV:KNE) on December 19, 2023. The terms of the offer remain confidential but specify that Kane will sell its ownership of STEM. In addition, pursuant to the terms of the offer, Kane will receive a deposit in the amount of $625,000 which will be applied towards the sale price of Kane?s interest in STEM.

The parties have agreed to collaborate using their best efforts to enter into a binding share purchase agreement with respect to the sale of STEM within 90 days. In addition, the Company and Pivot Financial I Limited Partnership (?Pivot?) have agreed, to extend the term of the Company?s amended credit agreement between the Company and Pivot dated September 11, 2023, by extending the maturity date of the credit facility from November 30, 2023 to March 31, 2024. The proposed sale of Kane?s interest in STEM and the Proposed Amended Credit Facility are both subject to the execution of definitive transaction documents and the receipt of any necessary approvals, including the approval of the TSX Venture Exchange and, potentially, shareholder approval.

As of December 20, 2023, Kane and Pivot I Financial Limited Partnership entered into a definitive agreement to amend the terms of the Company?s amended and restated credit facility. The amendment to the Credit Facility remains subject to the final approval of the TSX Venture Exchange.