Izotropic Signs Letter Agreement for Regional Operations in Africa & the GCC

Rhea-AI Summary

Izotropic (OTCQB:IZOZF) signed a Letter Agreement to form Izotropic Africa (Casablanca) with a business group to license, market, distribute, and evaluate manufacturing/assembly of IzoView Breast CT across Africa and the GCC. The parties agreed a 60/40 split (BG/Izotropic), target a Formal Agreement by April 30, 2026, and plan a Q1 2026 hospital installation in Morocco for research and regulatory engagement. Izotropic's estimated first-year share is USD $120K, with a USD $30K initial advance.

Positive

• Regional expansion into Africa and GCC markets
• 60/40 local partner structure via Izotropic Africa
• Planned Q1 2026 hospital installation for clinical data
• Izotropic's estimated first-year share: USD 120K

Negative

• Agreement is a non-binding Letter Agreement pending Formal Agreement
• All further commitments contingent on securing additional financing
• Initial advance only covers 25% of Izotropic's estimated share

News Market Reaction – IZOZF

+6.50%

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+6.50% News Effect

On the day this news was published, IZOZF gained 6.50%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia and Sacramento, California--(Newsfile Corp. - February 18, 2026) - Izotropic Corporation (CSE: IZO) (OTCQB: IZOZF) (FSE: 1R3) ("Izotropic", or the "Company"), a medical device company commercializing innovative, emerging technologies and imaging-based products for the more accurate screening, diagnoses, and treatment of breast cancers, announces that it has entered into a Letter Agreement (the "Agreement") with a business group ("BG") to establish an entity named Izotropic Africa (the "Entity") based in Casablanca, Morocco. The Entity is intended to license, market, distribute, and evaluate manufacturing and/or assembly of IzoView Breast CT and certain follow-on products in all of Africa and the Gulf Cooperation Council ("GCC"): Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (the "Business Purpose").

The establishment of Izotropic Africa is intended to expand the Company's commercial footprint into regions where access to advanced breast imaging remains limited, positioning Morocco as a strategic gateway for deployment, regulatory engagement, and potential future regional manufacturing initiatives. Breast cancer is the most prevalent cancer among African women, with over 200,000 annual cases and mortality rates exceeding 50% due to delayed diagnoses and limited access to advanced care. The addressable market for advanced imaging and oncology devices in Africa is projected to exceed USD $500 million by 2030, reflecting significant unmet demand and long-term regional growth potential.

Under the terms of the Agreement, the parties will incorporate the Entity and establish a local office for operations, with BG holding a 60% fully diluted interest and Izotropic holding a 40% fully diluted interest, subject to final corporate, tax, regulatory, repatriation structuring and legal advice acceptable to both Parties, and have agreed to negotiate in good faith to finalize and enter into a Formal Agreement (the "Formal Agreement") by April 30, 2026, which will define the detailed material terms and commitments contemplated in the Agreement. The Agreement will terminate upon execution of the Formal Agreement or if the Parties fail to enter into the Formal Agreement by that date.

Under the Agreement, BG has committed to developing and executing an annual business plan focused on the sales, marketing, and distribution of IzoView and any follow-on products in Africa and the GCC. BG has further committed to securing a major hospital site in Morocco in Q1, 2026 for installation of an IzoView Breast CT Imaging System to serve as a research data collection and clinical study and approval location forming the foundation for regulatory engagement and market entry within the region, initiating approval processes with Government health ministries in the designated territories, and assessing the feasibility of establishing manufacturing and/or assembly capabilities in Morocco to serve Africa and the GCC.

Izotropic is committed to supporting the establishment of the Entity through technical, clinical, and operational participation, including the intention to build, ship, and install the first IzoView Breast CT Imaging system for research and clinical approval processes in Morocco in partnership with the aforementioned designated hospital, subject to execution of the Formal Agreement and securing the required financing. The parties have agreed upon an estimated first-year start-up budget, pursuant to which Izotropic's 40% share is estimated at USD $120K. Izotropic has agreed to advance 25% (USD $30K) for the first three-month period against its portion of those estimated costs. All financial contributions and operational commitments of Izotropic beyond the initial capital advance remain expressly subject to execution of the Formal Agreement and securing of financing.

About Izotropic:

More information about Izotropic Corporation can be found on its corporate website at izocorp.com and by reviewing its profile on SEDAR+ at sedarplus.ca.

Forward-Looking Statements:

This document may contain statements that are "Forward-Looking Statements," which are based upon the current estimates, assumptions, projections, and expectations of the Company's management, business, and its knowledge of the relevant market and economic environment in which it operates. The Company has tried, where possible, to identify such information and statements by using words such as "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance, although not all forward-looking statements contain these identifying words.

These statements are not guarantees of performance and involve risks, including those related to capital requirements and uncertainties that are difficult to control or predict, and as such, they may cause future results of the Company's activity to differ significantly from the content and implications of such statements. Forward-Looking Statements are pertinent only as of the date on which they are made, and the Company undertakes no obligation to update or revise any Forward-Looking Statements to reflect new information or the occurrence of future events or circumstances unless otherwise required to do so by law. Neither the Company nor its shareholders, officers, and consultants shall be liable for any action and the results of any action taken by any person based on the information contained herein, including, without limitation, the purchase or sale of Company securities. Nothing in this document should be deemed to be medical or other advice of any kind. All images are for illustrative purposes only. IzoView has not yet been approved or cleared for sale.

Contacts:

Robert Thast, Interim Chief Executive Officer
Telephone: 1-604-220-5031 or 1-833-IZOCORP ext. 1
Email: bthast@izocorp.com

General and Corporate Inquiries
Telephone: 1-604-825-4778 or 1-833-IZOCORP ext. 3
Email: info@izocorp.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/284237

FAQ

What does Izotropic's Letter Agreement announced February 18, 2026 mean for IZOZF shareholders?

It means a proposed 60/40 joint venture to expand into Africa and the GCC with Izotropic holding 40% equity. According to the company, the Letter Agreement sets target milestones and a Formal Agreement deadline of April 30, 2026, pending final structuring and approvals.

How much is Izotropic (IZOZF) expected to invest in Izotropic Africa in year one?

Izotropic's estimated first-year share is USD 120,000, with a USD 30,000 initial advance. According to the company, the USD 30K represents 25% of Izotropic's portion for the first three months and further funding depends on the Formal Agreement and financing.

What are the timeline and milestones for the Izotropic Africa venture (IZOZF)?

The parties aim to finalize a Formal Agreement by April 30, 2026 and secure a major hospital site in Q1 2026. According to the company, the hospital installation will support research data collection, clinical study and regulatory engagement in Morocco and regionally.

Will Izotropic (IZOZF) manufacture IzoView products in Morocco?

The Letter Agreement contemplates assessing feasibility of manufacturing or assembly in Morocco to serve Africa and the GCC. According to the company, feasibility and any manufacturing plans remain subject to further evaluation, structuring and the Formal Agreement.

What risks should investors consider about Izotropic's Africa & GCC agreement (IZOZF)?

Key risks include the non-binding nature of the Letter Agreement and dependence on securing financing before further commitments. According to the company, all financial contributions beyond the USD 30K advance are contingent on executing the Formal Agreement and obtaining required funds.