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ATI Airtest Technologies Inc. Capital/Financing Update 2020

Sep 25, 2020

44844_rns_2020-09-24_c2e1f93f-6aeb-4d20-aa21-92628c0e9100.pdf

Capital/Financing Update

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51-102F3 MATERIAL CHANGE REPORT [F]

Item 1 Name and Address of Company

ATI Airtest Technologies Inc. (the “Company”) #9 – 1520 Cliveden Avenue Delta, BC V3M 6J8

Item 2 Date of Material Change

September 23, 2020

Item 3 News Release

The news releases dated September 23, 2020 were issued by Stockwatch and Market News.

Item 4 Summary of Material Change

The Company announced that the financing announced August 5, 2020 (the “Financing”) has now been fully subscribed and has closed. In connection with the Financing, the Company issued 25,000,000 units (each, a “ Unit ”) at a price of $0.02 per Unit for gross proceeds of $500,000. The proceeds will be used for inventory, research & development and general working capital.

Each Unit is comprised of one common share (a “Share”) in the capital of the Company and one nontransferable share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share in the capital of the Company (a “Warrant Share”) at an exercise price of $0.05 per Warrant Share for a period of two years from the closing of the Financing, subject to an acceleration provision, such that in the event that the Shares have a closing price on the TSX Venture Exchange of greater than $0.08 per Share for a period of 10 non-consecutive trading days at any time after four months and one day from the closing of the Financing, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and, in such case, the Warrants will expire on the 30th day after the date on which such notice is given to the holder.

All securities issued in connection with the Financing and the Shares that may be issuable on exercise of the Warrants are subject to a hold period expiring four months and one day after the closing of the Financing.

None of the securities issued in the Financing have been, and none of them will be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Item 5 Full Description of Material Change

5.1 Full Description of Material Change

The material change is fully described in Item 4 above and in the News Release filed on SEDAR at www.sedar.com.

5.2 Disclosure for Restructuring Transactions

Not Applicable

Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable

Item 7 Omitted Information

None

Item 8 Executive Officer

George Graham, President and Chief Executive Officer, 604.517.3888

Item 9 Date of Report

September 24, 2020

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