Vancouver, British Columbia--(Newsfile Corp. - July 24, 2024) - Kovo Healthtech Corporation (TSXV: KOVO) ("Kovo" or the "Corporation") is pleased to announce that, further to its news release dated May 20, 2024, the TSX Venture Exchange (the "TSXV") has approved the Corporation's previously announced debt conversion transaction (the "Debt Conversion Transaction") and the Corporation settled outstanding debt in the aggregate amount CDN$2,257,229.56 owing to its largest secured creditor, Avonlea Ventures #2 Inc. ("AVI") by issuing 57,543,906 common shares in the capital of the Corporation ("Common Shares") at a deemed issue price per Common Share equal to $0.035 and 4,863,861 Common Shares at a deemed issue price per Common Share equal to $0.05. In aggregate, 62,407,767 Common Shares (the "Settlement Shares") were issued to AVI and are subject to a customary four month plus one day hold period.

Upon the TSXV acceptance of the Debt Conversion Transaction: (i) the forbearance agreement dated February 27, 2024 between Kovo and AVI terminated and the Corporation is no longer subject to the default interest rate provided for in the senior loan and security agreement dated as of April 20, 2023 (the "Loan Agreement"); and (ii) the amendment and restatement of the Loan Agreement (the "Amended and Restated Loan Agreement") is deemed effective and, among other things, extends the maturity date of the remaining indebtedness owed to AVI (the "Remaining Indebtedness") to April 30, 2025 and provides AVI with the right to convert the Remaining Indebtedness into Common Shares (the "Additional Conversion Right") at a fixed price of CDN$0.05 per share (the "Loan Agreement Amendments", with the Debt Conversion Transaction and the Loan Agreement Amendments collectively, the "Transaction"). As a condition to obtaining the TSXV acceptance, the Corporation and AVI filed undertakings with the TSXV confirming that: (i) Kovo has not and will not make any adjustments to the outstanding equity incentive awards issued under the Corporation's equity incentive plan as a consequence of or in respect of the Transaction; and (ii) AVI shall not exercise its Additional Conversion Right unless, after such conversion, Kovo continues to meet the applicable Continued Listing Requirements in accordance with the policies of the TSXV.

About Kovo HealthTech Corporation

Kovo HealthTech Corporation is a growing healthcare technology company that specializes in Billing-as-a-Service offering SaaS-style recurring revenue contracts and software for more than 2250 US healthcare providers. Kovo helps healthcare providers digitally track and manage complex patient care registration, services, billing and payments in a seamless way. Currently, through its clients, Kovo processes over $250 million CAD ($200M USD) in annual billing transactions for more than 3.5 million patients. By offering effective billing practices, Kovo helps healthcare practitioners get paid so they can focus on offering quality care. To learn more about Kovo and to keep up-to-date on Kovo news, visit .

Forward Looking Information

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the Corporation's settlement of certain debt obligations owed to entities controlled by a current directors of the Corporation, the future financial condition of the Corporation and its prospects, including any proposed debt restructuring transaction, including the Debt Conversion Transaction and the Loan Agreement Amendments. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Corporation. Although management of the Corporation believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Corporation's ability to continue operations without adequate capital, the Corporation's ability to raise further capital, the Corporation's ability to meet the terms of its current debt obligations and to repay its indebtedness with or without the Debt Conversion Transaction and the Loan Agreement Amendments, the likelihood of the Corporation satisfying its ongoing obligations under the proposed Debt Conversion Transaction and Loan Agreement Amendments, the Corporation's ability to efficiently and successfully develop new opportunities, failure to identify future transactional counter-parties, and the likelihood of any debt restructuring transaction being consummated, and the Corporation not defaulting in the future. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.