On January 16, 2023, MediaValet Inc. closed the transaction. The company now issued 2,692,315 units at an issue price of CAD 1.30 per unit for the gross proceeds of CAD 3,500,010. The transaction which was negotiated between the Company and Shen Capital, is being subscribed in part by Insiders of the Company.

This will result in total potential dilution to Shareholders from the issuance to Insiders of 4,615,400 Shares (2,307,700 Shares comprised in the Units and 2,307,700 Warrant Shares), representing approximately 11.3% of the currently outstanding Shares (approximately 10.0% of the outstanding Shares after the Offering and exercise of the Warrants). Shen Capital Partners Inc. a long-standing shareholder of the Company, has agreed to subscribe, directly or through an affiliate, for 1,923,077 Units and David Miller, the Chief Financial Officer of the Company, has agreed to subscribe for 384,623 Units. Shen Capital held 7,677,786 Shares prior to the transaction, representing approximately 18.83% of the then outstanding Shares on an undiluted basis, and has one representative on the Board of Directors, Mr. Francis Shen.

The Company now has 43,478,770 Shares outstanding after closing the Private Placement. With its participation in the transaction, Shen Capital will increase its holdings to 9,600,863 Shares, and will hold Warrants that could increase its holdings to 11,523,940 Shares. Accordingly, on completion of the Offering Shen Capital will hold 22.08% of the outstanding Shares (on an undiluted basis) and 25.38% of the outstanding Shares on a partially diluted basis (assuming Shen Capital exercises all of its Warrants and no other Shares are issued).

The transaction was oversubscribed.