MONTREAL, February 24, 2025 -- Quantum eMotion Corp. (“QeM” or the “Corporation”) is pleased to announce that it has closed its previously announced best efforts brokered private placement for total gross proceeds of C$10,000,000 (the “Offering”), consisting of the issuance of 13,333,333 units of the Corporation (each “Unit”) at a price of C$0.75 per Unit (the “Offering Price”), pursuant to the listed issuer financing exemption (the “LIFE Exemption”) under Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”). A.G.P. Canada Investments ULC (the “Agent”) acted as sole bookrunner for the Offering and A.G.P./Alliance Global Partners acted as the sole U.S. agent to the Corporation in connection with the Offering.

Each Unit consists of (i) one common share in the capital of the Corporation (a “Share”), and (ii) one common share purchase warrant (a “Warrant”). Each Warrant entitles its holder to acquire one additional common share (a “Warrant Share”) of the Corporation at a price of C$1.10 for a period of 3 years from the date of issuance.

The Corporation intends to use the net proceeds raised from the Offering to accelerate the pace of its research and development (“R&D”) efforts, expand the R&D team, hire staff for the commercialization initiatives underway and for general working capital needs.

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the securities issued pursuant to the LIFE Exemption are expected to be immediately freely tradeable and will not be subject to a hold period under applicable Canadian securities laws.

As consideration for their services, the Agent has received an aggregate cash fee equal to 6.5% of the gross proceeds of the Offering. In addition, the Corporation issued to the Agent non-transferable warrants (the “Agent Warrants”) representing 5.0% of the aggregate number of Units issued pursuant to the Offering. Each Agent Warrant entitles its holder to purchase one common share of the Corporation at price of C$0.88 for a 30-month period from the date of issuance.