22NW Fund Purchases DIRTT Shares Through Rights Offering

Seattle, Washington--(Newsfile Corp. - January 22, 2024) - 22NW Fund, LP ("22NW") announced today that its holding of common shares ("Shares") of DIRTT Environmental Solutions Ltd. ("DIRTT") has increased as a result of its purchase of Shares through exercise of rights issued by DIRTT under its rights offering (the "Rights Offering"), which DIRTT announced was completed on January 9, 2024. It has also transferred 4,117,741 Shares to Mr. Aron English, the Manager of 22NW Fund GP, LLC, the general partner of 22NW.

22NW purchased 28,191,998 Shares resulting from the Rights Offering. It is transferring 4,117,741 Shares to Mr. English, who purchased 1,575,057 Shares resulting from the Rights Offering. As a result of its purchase of Shares resulting from the Rights Offering and its transfer of Shares to Mr. English , 22NW will own 49,955,045 Shares, representing 26.14% of the issued and outstanding Shares. With their purchases of Shares resulting from the Rights Offering, 22NW and joint actors (including Mr. English) now own 57,429,665 Shares, representing 30.05% of the issued and outstanding Shares.

22NW also owns debentures of DIRTT (the "Debentures") that are convertible into Shares. If 22NW converted all of the Debentures it owns into Shares, 22NW would own an additional 8,440,252 Shares, representing 4.23% of the issued and outstanding Shares. When aggregated with the Shares 22NW will own after the Rights Offering and transfer of Shares to Mr. English, 22NW would own 58,395,297 Shares upon conversion of all of the Debentures it owns and 22NW and joint actors would then own 65,869,917 Shares, representing 33.01% of the issued and outstanding Shares.

Shares were purchased by 22NW and joint actors pursuant to the basic subscription privilege and additional subscription privilege available under the Rights Offering. No Shares were available for issuance pursuant to the standby commitment provided by 22NW and another DIRTT shareholder under a standby purchase agreement with DIRTT entered into in connection with the Rights Offering.

Depending on market conditions and other factors, 22NW may in the future increase or decrease its ownership, control or direction over Shares through market transactions, private agreements or otherwise.

FOR MORE INFORMATION

For further information or to receive a copy of the report filed in connection with this press release, please see DIRTT's profile on the SEDAR website (http://www.sedar.com) and its US filings that are available at no charge on the Securities and Exchange Commission's website (http://sec.gov), or contact Aron English at 206-227-3078 or info@englishcap.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/195215