Aquarius AI Announces Debt Settlement

Vancouver, British Columbia--(Newsfile Corp. - August 17, 2020) - Aquarius AI Inc. (TSXV: AQUA) (FSE: 4G5) ("AQUA", or the "Company") announces that the Company has reached an agreement to settle all outstanding debt (the "Debt") owing to the Company's secured lender in exchange for: (i) 500,000 common share purchase warrants of the Company (the "Settlement Warrants"); and (ii) a cash payment of $825,000.00 (the "Cash Payment").

Each Settlement Warrant is exercisable into one common share of the Company at a price of $0.275 per common share for a period of 24 months from the date of issue. The Debt will be definitively extinguished upon the issuance of the Settlement Warrants and the completion of the Cash Payment. The Company is proposing to issue the Settlement Warrants in order to preserve cash for operating expenses.

The settlement of the Debt through the issuance of Settlement Warrants and completion of the Cash Payment is subject to all necessary regulatory approvals, including acceptance from the TSX Venture Exchange. The Settlement Warrants and underlying common shares will be subject to a four month and one day hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

For further information:

Aquarius AI Inc.
Melissa Adams
Investors@AquariusAI.ca
(604) 265-7511

Certain disclosure in this release, including statements regarding the proposed debt settlement and the Meeting, may constitute "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will obtain the necessary regulatory approvals for the debt settlement. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, delays in obtaining or inability to obtain required regulatory approvals for the debt settlement and changes in the Company's plans. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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/62003