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Kits Eyecare Ltd. Capital/Financing Update 2021

Feb 8, 2021

47986_rns_2021-02-08_f7e9d133-a9d2-41aa-8c5c-f96142319a88.pdf

Capital/Financing Update

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KITS EYECARE LTD.

MATERIAL CHANGE REPORT

Item 1: Name and Address of Company

Kits Eyecare Ltd. ("KITS" or the "Company") 510 Seymour Street, Suite 1020 Vancouver, BC V6B 3J5

Item 2: Date of Material Change

February 5, 2021

Item 3: News Release

On February 5, 2021, a news release in respect of the material change was disseminated on Cision and a copy thereof has been filed on SEDAR.

Item 4: Summary of Material Change

On February 5, 2021, the Company and certain of KITS' principal shareholders, including 0999849 B.C. Ltd., Sabrina Liak and Joseph Thompson (the " Principal Shareholders "), closed a partial over-allotment option exercise in connection with the Company's initial public offering (" IPO "). An aggregate of 485,294 common shares of the Company (the " Shares ") were sold by the Principal Shareholders for aggregate gross proceeds of $4,124,999. The Company did not realize any proceeds from the partial exercise of the overallotment option.

Item 5: Full Description of Material Change

The Company completed its IPO, managed by a syndicate of agents including Canaccord Genuity Corp. as sole bookrunner and lead agent, and CIBC World Markets Inc., Scotia Capital Inc., Roth Canada, ULC, Haywood Securities Inc. and Stifel Nicolaus Canada Inc. (collectively, the " Agents "), on January 19, 2021.

Certain of KITS' principal shareholders granted the Agents an over‐allotment option, exercisable in whole or in part, at the sole discretion of the Agents, at any time and from time to time, for a period of 30 days following the closing of the IPO, to purchase up to an additional 15% of the number of Shares sold under the IPO from such shareholders at the Offering Price.

On February 5, 2021, the Company and the Principal Shareholders closed a partial overallotment exercise of an aggregate of 485,294 Shares, sold at the IPO offering price of $8.50 per Share, for aggregate gross proceeds to the Principal Shareholders of $4,124,999. The Company did not realize any proceeds from the partial exercise of the over-allotment option.

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

2

Not applicable.

Item 7: Omitted Information

Not applicable.

Item 8: Executive Officer

The following senior officer of KITS is knowledgeable about the material change and this report:

Sabrina Liak Chief Financial Officer (604) 828-7388

Item 9: Date of Report

February 8, 2021