Satellos Bioscience Announces Results from Its Annual General Meeting of Shareholders and Adoption of Amendments to Stock Option Plan

Toronto, Ontario--(Newsfile Corp. - June 30, 2023) - Satellos Bioscience Inc. (TSXV: MSCL) ("Satellos" or the "Company"), a regenerative medicine company aimed at developing therapeutics that change the way degenerative muscle diseases are treated, announced today the results of its annual general meeting of shareholders held virtually on June 29, 2023 (the "Meeting"), as well as the adoption of amendments to the Company's Stock Option Plan.

A total of 34,607,323 common shares were voted in connection with the Meeting, representing approximately 30.68% of the issued and outstanding common shares of the Company.

Shareholders approved fixing the number of directors of the Company at eight, and each of the eight nominees listed in the management information circular of the Company (the "Circular") dated May 29, 2023, namely, Frank Gleeson, Dr. Rima Al-awar, Brian Bloom, William Jarosz, Geoff MacKay, Dr. William McVicar, Adam Mostafa, and Franklin M. Berger, was elected as a director of Satellos for the ensuing year or until his or her successor is elected or appointed.

In addition, Satellos reports that an ordinary resolution approving the appointment of MNP LLP as the Company's auditors for the ensuing year and to authorize the directors to fix the auditors' remuneration was passed at the Meeting.

Further, an ordinary resolution of disinterested shareholders of the Company was passed approving the amendment and restatement of the Company's Stock Option Plan in order to change the Stock Option Plan from a "rolling 10% plan" to a "fixed plan", pursuant to which the aggregate number of common shares to be issued thereunder will not exceed 18,300,000 common shares (subject to the approval of the TSX Venture Exchange (the "TSXV")). This number of common shares represents approximately 12% of the sum of (i) the number of common shares issuable pursuant to the exercise of pre-funded warrants issued in the Company's May 2023 prospectus offering (the "Pre-funded Warrants") and (ii) the number of issued and outstanding common shares as of the date of the Circular. Such number of common shares also represents approximately 16% of the issued and outstanding common shares of the Company (excluding the Pre-Funded Warrants) as of the date of the Circular.

The amendment and restatement of the Company's Stock Option Plan has also been adopted by the Company's board of directors. Pursuant to the amendment and restatement of the Stock Option Plan, the board of directors of the Company may, from time to time, grant options to directors, officers, employees and consultants of the Company. The amendment and restatement of the Company's Stock Option Plan remains subject to the approval of the TSXV. Options granted pursuant to the amendment and restatement of the Company's Stock Option Plan may not be exercised until TSXV approval has been received.

About Muscle Stem Cells and Duchenne Muscular Dystrophy

Satellos scientific founder, Dr. Michael Rudnicki, discovered and has demonstrated how muscle stem cells employ a biological process known as "stem cell polarity" to regulate muscle repair and regeneration throughout life. Dr. Rudnicki has also shown how regulatory defects in stem cell polarity lead to a failure of muscle repair and regeneration in Duchenne muscular dystrophy (DMD), representing a previously unrecognized root cause of DMD. As a result of this ongoing inability to produce sufficient numbers of new muscle cells, people with DMD are unable to repair the continuous and accumulating muscle tissue damage. Based on this research, Satellos is advancing a novel small molecule therapeutic designed to rescue the defect in stem cell polarity and provide a disease-modifying treatment for DMD and other muscular dystrophies.

About Satellos Bioscience Inc.

Satellos is a publicly traded biotechnology company dedicated to developing life-improving medicines to treat degenerative muscle diseases. Satellos has incorporated breakthrough research in muscle stem cell polarity into a proprietary discovery platform, called MyoReGenX^TM, to identify degenerative muscle diseases where deficits in this process affect muscle regeneration and are amenable to therapeutic intervention. With this platform, Satellos is building a pipeline of novel therapeutics to correct muscle stem cell polarity and promote the body's innate muscle repair and regeneration process. The Company's lead program is an oral, small molecule drug candidate in development as a disease-modifying treatment for Duchenne muscular dystrophy. Satellos is headquartered in Toronto, Ontario. For more information, visit Satellos.com.

CONTACT:
Business Development
Ryan Mitchell, Ph.D.
rmitchell@satellos.com

Communications at Satellos Bioscience Inc.
Christina Cameron
ccameron@satellos.com
647.660.1780

For Media
Jessica Yingling, Ph.D.
jessica@litldog.com
+1.858.344.8091

Notice on forward-looking statements:

This press release includes forward-looking information or forward-looking statements within the meaning of applicable securities laws regarding Satellos and its business, which may include, but are not limited to, TSXV approval of amendments to the Company's Stock Option Plan, the granting of options pursuant to the Company's Stock Option Plan; general benefits of modulating stem cell polarity; its prospective impact on Duchenne patients and muscle regeneration generally; and Satellos' technologies and drug development plans. All statements that are, or information which is, not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking information or statements". Often but not always, forward-looking information or statements can be identified by the use of words such as "shall", "intends", "anticipate", "believe", "plan", "expect", "intend", "estimate" "anticipate" or any variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "might", "can", "could", "would" or "will" be taken, occur, lead to, result in, or, be achieved. Such statements are based on the current expectations and views of future events of the management of the Company. They are based on assumptions and subject to risks and uncertainties. Although management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including, without limitation, those listed in the "Risk Factors" section of the Prospectus dated May 9, 2023 and the Annual Information Form dated April 27, 2023 (both of which are on the Company's profile at www.sedar.com). Although Satellos has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Satellos does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

No regulatory authority has approved or disapproved the content of this press release. Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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