Entheon Biomedical Closes Private Placement

Vancouver, British Columbia--(Newsfile Corp. - December 25, 2020) - Entheon Biomedical Corp. (CSE: ENBI) (FSE: 1XU1) ("Entheon" or the "Company")announces that it has closed a non-brokered private placement financing for total gross proceeds of CAD $3,174,374.25 (the "Placement"). The majority of the Placement was subscribed for by strategic investors.

The Company has allotted and issued 4,232,499 units (the "Units") at a price of CAD $0.75 per Unit. Each Unit is comprised of one common share and one-half of one non-transferable warrant (each whole, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share for a period of two (2) years at a price of CAD $1.00 per share, subject to accelerated expiry.

In the event that, after four months and one day from issuance, the Company's common shares trade at a closing price at or greater than $1.50 per share for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the Company.

In addition, the Company has paid finder's fees totaling $126,367.43 and issued an aggregate 168,490 finder's warrants (the "Finders Warrants") to an arm's-length parties. Each Finders Warrant is exercisable into one Unit for a period of up to two (2) years at a price of CAD $0.75.

The Company intends to use the proceeds from the Placement towards the advancement of clinical trials and general working capital purposes. All securities issued under the Placement will be subject to a four-month and one-day hold period.

About Entheon Biomedical Corp.

Entheon is a biotechnology research and development company committed to developing and commercializing a portfolio of safe and effective N,N-dimethyltryptamine based psychedelic therapeutic products ("DMT Products") for the purposes of treating addiction and substance use disorders. Subject to obtaining all requisite regulatory approvals and permits, Entheon intends to generate revenue through the sale of its DMT Products to physicians, clinics and licensed psychiatrists in the United States, certain countries in the European Union and throughout Canada.

On Behalf of the Board of Directors

Timothy KoCEO

For more information, please contact the Company at:

Entheon Biomedical Corp.Joseph Cullen, Investor RelationsTelephone: +1 (778) 919-8615Joe@entheonbiomedical.comhttps://entheonbiomedical.com/^[1][2]

For media inquiries, please contact Crystal Quast at:

Bullseye CorporateCrystal QuastTelephone: +1 (647) 529-6364Quast@BullseyeCorporate.com^[3]

Cautionary Note on 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. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company 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 Company 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 Company's ability to raise further capital and the Company's ability to obtain regulatory and exchange approvals. 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.

Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71027^[4]

References

1. ^{^} Joe@entheonbiomedical.com (www.newsfilecorp.com)
2. ^{^} https://entheonbiomedical.com/ (www.newsfilecorp.com)
3. ^{^} Quast@BullseyeCorporate.com (www.newsfilecorp.com)
4. ^{^} https://www.newsfilecorp.com/release/71027 (www.newsfilecorp.com)