Kits Eyecare Ltd. Announces Closing of Over-Allotment Option

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, BC, Oct. 11, 2024 /CNW/ - Kits Eyecare Ltd. (TSX: KITS) ("KITS" or the "Company"), a leading vertically integrated eyecare provider, is pleased to announce the closing of the over-allotment option (the "Over-Allotment Option") in connection with its previously announced secondary offering of common shares of the Company (the "Common Shares"). Canaccord Genuity Corp., as sole bookrunner and co-lead underwriter, together with Beacon Securities Limited, as co-lead underwriter, on behalf of a syndicate of underwriters (collectively, the "Underwriters") elected to exercise the Over-Allotment Option in full and purchased, on a bought deal basis, an aggregate of 168,750 additional Common Shares held by 0999849 B.C. Ltd, an entity controlled by Roger Hardy (the "Hardy Shareholder"), LD Group Holdings Ltd., an entity controlled by Arshil Abdulla ("LD Group") and Joseph Thompson (together with the Hardy Shareholder and LD Group, the "Selling Securityholders") at a price of $10.15 per share for total gross proceeds to the Selling Securityholders of $1,712,812.50. KITS did not receive any proceeds from the Over-Allotment Option.

Immediately following the closing of the Over-Allotment Option, Roger Hardy, directly or indirectly, owns or controls an aggregate of 9,014,110 Common Shares, representing approximately 28.5% of the issued and outstanding Common Shares; the LD Group, directly or indirectly, owns or controls 10,498,089 Common Shares, representing approximately 33.2% of the issued and outstanding Common Shares; and Joseph Thompson, directly or indirectly, owns or controls 216,829 Common Shares, representing approximately 0.7% of the issued and outstanding Common Shares.

Following the completion of the Over-Allotment Option, the Company's insiders own approximately 74.7% of the issued and outstanding Common Shares.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the 1933 Act or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, and applicable U.S. state securities laws.

About KITS

KITS makes eyecare easy. KITS is a leading vertically integrated digital eyecare brand providing eyewear for eyes everywhere. We offer customers access to a vast selection of contact lenses and eyeglasses, including our own exclusive KITS designed products, as well as a robust suite of online vision tools. Our efficient digital platform, backed by our industry-leading manufacturing and designs, removes intermediaries, and enables us to offer great prices and deliver made to order personalized products with incredible care and accuracy. We are creating disruption in the industry by constantly pursuing cutting-edge technologies to enable the best customer experience, including online eyewear fitting tools, and virtual try-on for glasses. We strive to delight our customers with our competitive prices, a convenient digital shopping experience, fast and reliable delivery options, and an unrelenting focus on earning our customers' lifelong trust. For more information on KITS, visit: www.kits.com.

Forward-Looking Information

Certain information in this press release, including the exercise by the Underwriters of the Over-Allotment Option, constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by KITS as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail under the "Risk Factors" sections of the management's annual information form, discussion and analysis of financial condition and results of operations of KITS for the 3-month and 6-month periods ended June 30, 2024, each available at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect KITS; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and KITS expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE KITS Eyecare Ltd.