TraceSafe Closes $4M Private Placement: Current Capital Needs Met, Order Pipeline Strong

August 7, 2020 - Tortola, British Virgin Islands – TraceSafe Inc. ("TraceSafe" or the "Company") (CSE: TSF), a global leader in wearable safety tech including contact tracing and self-quarantine management, is pleased to announce that it has closed its previously announced private placement (the "Offering") of 4,005,000 units of the Company (each, a "Unit"), at a price of $1.00 per Unit (the "Issue Price") for gross proceeds of $4,005,000. The Offering was led by Canaccord Genuity Corp. (the "Agent").

Concurrent with the Offering, the Company issued 43,750 Units at the Issue Price to a third-party consultant to settle existing debts owed for consulting services.

Each Unit consists of one (1) common share of the Company (a "Common Share") and one-half of one (1/2) Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one (1) Common Share (a "Warrant Share") at an exercise price of $1.50 per Warrant Share for a period of twenty-four months from the date of issuance, subject to early acceleration.

The net proceeds of the Offering are expected to be directed toward TraceSafe's inventory, software, sales and marketing and working capital purposes.

In connection with the Offering, the Company: (i) issued an aggregate of 215,850 agent warrants ("Agent Warrants") to the Agent and certain other brokers; and (ii) issued 80,100 Units to the Agent as a corporate finance fee. Each Agent Warrant entitles the holder to acquire one (1) Unit (an "Agent Warrant Unit") at an exercise price equal to the Issue Price per Agent Warrant Unit for a period of twenty-four months from the date of issuance. Each Agent Warrant Unit consists of one (1) Common Share and one-half of one (1/2) Warrant.

All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities laws.

Executive Quote

"The closing of this Private Placement gives us a solid foundation to meet our business objectives moving forward. Business and government clients from around the world are continuing to see TraceSafe's wearable technology platforms as an efficient and effective way to achieve social distancing and self-quarantine management requirements," commented Wayne Lloyd, CEO.

About TraceSafe

TraceSafe is a full suite of real-time location management services and contact tracing solutions enabled through advanced low power bluetooth beacons and enterprise cloud management. TraceSafe's leading cloud management solution ensures both user privacy and comprehensive administrative control. TraceSafe's patented contact tracing bracelet has already been deployed in mission critical quarantine applications around the world in partnership with leading governments. In addition to their government work, TraceSafe is developing leading edge solutions for Enterprise, Healthcare, Education, Government and large-scale venue management.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.