Newtopia Announces an Increase of its Growth Facility with a Leading Canadian Schedule I Bank to $7.5 Million

$7.5 million growth facility plus the $2.5M debenture unit private placement previously announced brings the Company's total growth financing to $10 million

TORONTO, Sept. 29, 2021 /PRNewswire/ - Newtopia Inc. ("Newtopia" or the "Company") (TSXV: NEWU) (OTCQB: NEWUF), a tech-enabled habit change provider focused on disease prevention, today announced it has entered into an agreement (the "Amending Agreement") with a leading Canadian Schedule I Bank (the "Lender") amending a commitment letter between the Company and the Lender dated October 2, 2020 (the "Original Commitment Letter" and together with the Amending Agreement, collectively, the "Amended Commitment Letter"). The Amended Commitment Letter provides for an increased revolving credit facility of $7.5 million (the "Enhanced Facility"), up from the $5.0 million in funding secured previously. This new credit facility, along with the $2.5 million private placement offering, doubles the amount of growth capital available to the Company for working capital and general corporate purposes.

"We are very pleased to announce this increase in our growth facility and are grateful for the ongoing support we have received from our banking partner," said Jeff Ruby, Founder and CEO of Newtopia. "This growing support is a true testament to the tremendous progress we have made to date and reflects the bank's ongoing confidence in Newtopia's ability to successfully execute against our long-term growth strategy."

Mr. Ruby continued, "We plan to make good use of the additional liquidity as our business returns to growth in the second-half of the year following a 300% increase in Welcome Kits sold in the second quarter. We will strategically leverage these funds to: (1) hire additional Inspirators for our growing and highly engaged participant base; (2) expand our sales and marketing teams, to broaden our business development into additional health insurer verticals and, importantly; (3) continue to advance our one-of-a-kind habit change technology to improve efficiencies and drive increased margins. This expanded facility, along with the overall growth of our business, will enable us to continue delivering meaningful cost savings and ROI to our health insurer customers, while working towards preventing, reversing and slowing the progression of physical and mental health risks linked to chronic disease."

The terms of the new Enhanced Facility are materially unchanged from the Original Commitment Letter. Principal terms of the Original Commitment Letter are set out in the Company's previous press release dated October 5, 2020 and available under Newtopia's profile on SEDAR at www.sedar.com.

The Enhanced Facility is subject to approval of a 50% guarantee by Export Development Canada ("EDC") through the Export Guarantee Program ("EGP") which the Company anticipates in the coming weeks. The facility advanced pursuant to the Original Commitment Letter was subject to a 50% guarantee previously approved by EDC through the EGP. The Enhanced Facility will continue to be secured by a first ranking security interest over all of the present and future property of Newtopia.

About Newtopia

Newtopia is a tech-enabled habit change provider focused on disease prevention and reducing the cost of care for health insurers. As a provider of whole person care, we prevent, reverse, and slow the progression of chronic disease while enriching mental health, resilience and overall human performance. Newtopia's programs leverage genetic, social, and behavioral insights to create individualized prevention programs with a focus on type 2 diabetes, heart disease, stroke and weight. With a person-centered approach that combines virtual care, digital tools, connected devices and actionable data science, Newtopia delivers sustainable clinical and financial outcomes. Newtopia serves some of the largest nationwide employers and health plans and is currently listed on the Toronto Stock Exchange (TSXV: NEWU) (OTCQB: NEWUF). To learn more, visit newtopia.com, Facebook, LinkedIn or Twitter.

Forward Looking Statements

This news release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation (collectively, "forward-looking statements"), which reflects management's expectations regarding Newtopia's future growth, results from operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects and opportunities. Wherever possible, words such as "predicts", "projects", "targets", "plans", "expects", "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. All statements other than statements of historical fact may be forward-looking ‎information. Such statements reflect Newtopia's current views and intentions with respect to future ‎events, based on information available to Newtopia, and are subject to certain risks, uncertainties, and ‎assumptions. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that Newtopia believes are reasonable under the circumstances, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. These forward-looking statements include, among other things, the use of proceeds from the Enhanced Facility, approval of the 50% guarantee by EDC through the EGP, statements relating to Newtopia's business plans, growth and outlook. Forward-looking statements are not a guarantee and are based on a number of estimates and assumptions management believes to be relevant and reasonable, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. Certain of the "risk factors" that could cause ‎actual results to differ materially from Newtopia's forward-looking statements in this press release ‎include, without limitation: the termination of contracts by clients, risks related to COVID-19 including various recommendations, orders and measures of ‎‎governmental authorities to try to limit the pandemic, including travel restrictions, border closures, ‎‎non-essential business closures, quarantines, self-isolations, shelters-in-place and social ‎distancing, ‎disruptions to markets, economic activity, financing, supply chains and sales channels, ‎and a ‎deterioration of general economic conditions including a possible national or global ‎recession; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in Newtopia's disclosure documents, filed with the securities ‎regulatory authorities in certain provinces of Canada and available at www.sedar.com including Newtopia's final long form prospectus dated March 30, 2020.

Should any factor affect Newtopia's in an unexpected manner, or should assumptions underlying the forward- looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Newtopia does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and Newtopia undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Newtopia Inc.