CHITOGENX ANNOUNCES ITS THIRD QUARTER 2023 RESULTS

• Successful completion of the first part of the ORTHO-R US Phase I/II clinical trial for the repair of rotator cuff tears
• Restructured balance sheet with $5.8 million favorable impact on working capital
• $1.2 million secured after Q3-23, to support operations
• Launched meniscus repair as the second orthopedic development program, with preclinical surgeries in large animals successfully completed.
• Sales of medical-grade chitosan continue as new near-term business revenue initiative
• New corporate name to better represent the broad applications of the company’s proprietary technology platform beyond orthopedics

MONTREAL, December 29, 2022 /CNW/ – ChitogenX Inc., (CSE: CHGX) (OTCQB: CHNXF) (“ChitogenX“or the”Company“), a clinical-stage orthobiology company focused on the development of novel regenerative soft tissue repair technologies, today announced financial results and highlights for the third quarter of fiscal 2023 ended October 31, 2022.

“During the third quarter, the company continued to execute on its business strategy of expanding its technology platform applications beyond the orthopedic domain. From pursuing sales of medical-grade chitosan as a non-dilutive revenue stream to signing collaborative development agreements with renowned medical innovation institutes, ChitogenX is advancing initiatives that will help realize the full value of our proprietary technology,” said Philippe Deschamps, Chairman and CEO. “Given the versatile properties and functionality of our hybrid Chitosan-PRP biologic implant, we are confident that even more opportunities will be presented to help address many other significant unmet medical needs.”

Commenting on the results for the third quarter of 2023, Luc Mainville, senior vice president and chief financial officer of ChitogenX, said; “Restructuring our balance sheet and reducing our current liabilities was a priority for the Company. The accelerated conversion of existing debentures demonstrates our investors’ confidence in our strategy. Now that this part of the plan is complete, we now look forward to delivering more Phase I/II clinical trial and company milestones.”

Q3 2023 ORTHO-R Program Highlights

• In October 2022the Company launched its second orthopedic development program in meniscus repair following the completion of the development of its preclinical arthroscopic surgery program.

Third Quarter 2023 Highlights

• In October 2022the company has signed a partnership with the California Medical Innovations Institute to identify collaborative projects and pursue proof-of-concept research programs using ChitogenX’s proprietary regenerative medicine solutions to improve patient outcomes;
• In October 2022, the company announced its decision to pursue sales of medical-grade chitosan as a new near-term commercial revenue initiative following the completion of an internal business and regulatory readiness process; and
• In September 2022the company changed its corporate name from Ortho Regenerative Technologies Inc. to ChitogenX Inc. to better reflect the expanded clinical and business opportunities, mission, values ​​and core competencies of the company.

Events after the third quarter of 2023

• In December 2022, the Company has entered into an agreement with the holders of existing convertible and non-convertible debentures. An agreement is in place for the accelerated conversion of $2.6 million value of convertible debentures as well as the extension of the $3.0 million maturity of the non-convertible debentures from November 2023 to February 2025;
• In December 2022the company has obtained $1.2 million to fund operations and support initiatives related to the Phase I/II clinical trial for the repair of rotator cuff tears;
• In November 2022, the company has successfully completed the first part of its ORTHO-R U.S. Phase I/II clinical trial for the repair of rotator cuff tears requiring staggered enrollment of 5 patients and review by the data security and sequential authorization for each trial participant; and
• In November 2022the Company has successfully completed large animal surgeries for its previously announced Axelys-funded preclinical meniscus repair program $750,000 grant.

Third quarter 2023 Financial statements and management report

ChitogenX Financial Statements and MD&A for the Three and Nine Month Periods Ended October 31, 2022are available on SEDAR at www.sedar.com.

About ChitogenX Inc.

ChitogenX Inc. (formerly Ortho Regenerative Technologies Inc.) is a clinical-stage regenerative medicine company dedicated to developing novel therapeutic tissue repair technologies to enhance tissue healing. The Company is engaged in the clinical development of its exclusive technology platform RESTORE, a muco-adhesive biopolymer matrix based on CHITOSAN, specially designed to provide biological products such as platelet-rich plasma (PRP) or the concentrate of bone marrow aspiration (BMAC), to improve healing. in various regenerative medicine applications.

Other formulations are being developed to take advantage of the technology’s performance characteristics such as tissue adhesion, flexibility, and the ability to deliver biologicals or therapeutics to various tissues damaged by trauma or disease. Further information about ChitogenX is available on the Company’s website at www.chitogenx.com and on SEDAR at www.sedar.com.

Forward-looking statements

This press release may contain certain forward-looking statements regarding the Company’s expectations regarding future events. These expectations are based on certain assumptions based on currently available information. If these assumptions prove incorrect, actual results could differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, but are not limited to, uncertainty of the final outcome and other risks. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by safety laws.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER HAS REVIEWED NOR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Ortho Regenerative Technologies Inc.

For further information: Company: Philippe Deschamps, President and CEO, 614-596-2597, [email protected] or Luc Mainville, Senior Vice President and Chief Financial Officer, 514 693-8854, [email protected]; Investors: Frédéric Dumais, Director of Communications and Investor Relations, (514) 693-8847, [email protected]