Press Release Regarding Early Warning Report with Respect to Securities of Katipult Technology Corp.

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Calgary, Alberta--(Newsfile Corp. - September 30, 2019) - Further to the press release with respect to Katipult Technology Corp. (TSXV: FUND) ("Katipult" or the "Company"), dated September 23, 2019 (the "Prior Release"), Mr. Brock Murray, Mr. Pheak Meas, Mr. Brian Craig and Mr. Michael Broadfoot hereby announce that Mr. Murray (Chief Executive Officer and Director of the Company) and Mr. Meas (Chief Product Officer and Director of the Company) (the "Vendors") have each sold from their personal holdings 2,625,000 common shares in the capital of the Company (the "Common Shares") and have granted options to acquire a further 2,625,000 Common Shares (the "Options") from their personal holdings (the "Transactions"). The Common Shares and Options were acquired by Mr. Craig (Director of the Company) and Mr. Broadfoot (Board Observer of the Company), through his affiliated entity, MGB Investments Limited Partnership (the "Purchasers").

The Common Shares were purchased at a price of $0.25 per Common Share, for aggregate consideration received by each Vendor of $656,250, and the Options will be exercisable at a price of $0.25 per Common Share for a period of five years from the date of grant (subject to certain accelerated exercise provisions in favour of the Vendors), resulting, upon full exercise of the Options, in $656,250 of aggregate consideration to each Vendor.

Immediately prior to closing of the Transactions, each of the Vendors held 21,000,000 Common Shares, representing approximately 30.9%, individually, of the current issued and outstanding Common Shares. Following completion of the Transactions, and assuming exercise of all of the Options by the Purchasers, each of the Vendors will hold 15,750,000 Common Shares, representing approximately 23.2%, individually, of the current issued and outstanding Common Shares.

As previously disclosed in the Prior Release, the Purchasers each currently hold $1,000,000 of unsecured convertible debentures of the Company issued on May 30, 2018 (the "Debentures"). The Debentures are convertible, subject to the terms thereof, into approximately 1,960,785 Common Shares (without including any accrued interest, which may also be converted to Common Shares at the election of the Purchasers). Additionally, immediately prior to completion of the Transactions, Mr. Craig held 80,645 Common Shares, options to acquire 450,000 Common Shares (the "Stock Options") and restricted share units representing the right to receive 150,000 Common Shares (the "RSUs"). Mr. Craig's pre-Transaction holdings represented approximately 3.9% of the current issued and outstanding Common Shares. Mr. Broadfoot's pre-Transaction holdings represented approximately 2.9% of the current issued and outstanding Common Shares.

Assuming exercise of the Options, conversion of the principal amount of the Debentures into Common Shares, the exercise of the Stock Options and the conversion of the RSUs to Common Shares, Mr. Craig would eventually hold 7,891,430 Common Shares, representing approximately 11.2% of the current issued and outstanding Common Shares. Assuming exercise of the Options and conversion of the principal amount of the Debentures into Common Shares, Mr. Broadfoot would eventually hold, directly or indirectly, 7,210,785 Common Shares, representing approximately 10.3% of the current issued and outstanding Common Shares.

As noted in the Prior Release, Mr. Murray and Mr. Meas are selling a portion of their Common Shares for personal financial reasons and Mr. Craig and Mr. Broadfoot are purchasing to increase their overall investment levels in the Company and expect to be long term holders of the Common Shares. Notwithstanding the foregoing, each of the Vendors and the Purchasers may, from time to time, acquire additional securities of the Company, dispose of some or all of the existing or additional securities held or to be held, or, may continue to hold their current position.

This News Release is issued pursuant to National Instrument 62-103 - Early Warning System and Related Takeover Bids and Insider Reporting Issues of the Canadian Securities Administrators, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. Such early warning reports will be filed within the timelines required by applicable securities laws and made available on the Company's SEDAR profile.

SOURCES

Brian Craig, c/o Socium Law, 1600, 144 - 4th Avenue S.W., Calgary, Alberta T2P 3N4

MGB Investments Limited Partnership, c/o Socium Law, 1600, 144 - 4th Avenue S.W., Calgary, Alberta T2P 3N4

Pheak Meas, c/o Peterson McVicar LLP, 18 King Street E., Suite 902, Toronto, Ontario M5C 1C4

Brock Murray, c/o Peterson McVicar LLP, 18 King Street E., Suite 902, Toronto, Ontario M5C 1C4

Neither 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/48309

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