Sona Nanotech – A Year in Review 2024

Dear Fellow Investors in, and Followers of, Sona Nanotech Inc. (the “Company”),

We wanted to take the opportunity with the turning of the New Year to

share some reflections on 2024 and thoughts on the year ahead. 2024 was

a busy and exciting time for the Company during which it delivered strong

preclinical efficacy study results for its cancer therapy and laid the

groundwork for our advance into human clinical trials.

 

Sona’s THT-Immunotherapy

2024 will be remembered as a foundational year for the Company. Sona

delivered two important preclinical studies through the Giacomantonio

laboratory at Dalhousie University that demonstrated the ability of our

Targeted Hyperthermia Therapy (“THT”) to both shrink tumors and trigger a

strong immune response while not damaging healthy, noncancerous cells,

as happens with chemotherapy, radiation, and surgery. Moreover, these

studies showed how Sona’s THT therapy can cause the highly desired

‘abscopal effect’, where untreated, distant metastasizing tumors also

responded to THT treatment applied only to the primary tumor. Needless to

write but replicating these promising results in human clinical trials could

have profound implications for patients suffering from a variety of cancers

that are unresponsive to current therapies.

 

We are pleased to report that detailed analysis of findings from these two

important preclinical studies, one in melanoma and one in triple negative

breast cancer, and related follow-up analysis have now been published in

the prestigious, peer reviewed journal, Frontiers In Immunology. “In the Life

Sciences industry, it is one thing for a small company like Sona Nanotech to

report positive preclinical trial results but quite another to have that data

subjected to a robust peer review process and accepted for publishing in a

leading Industry Scientific Journal”, says David Regan, CEO of Sona

Nanotech Inc. We therefore anticipate heightened interest in our work with

the publishing of this study.

 

The published findings from our paper, entitled, Targeted Intra-tumoral

Hyperthermia with Uniquely Biocompatible Gold Nanorods Induces a

Strong Immunogenic Cell Death in Two Immunogenically ‘Cold’ Tumors”,

highlight the rigorous scientific experiments and peer reviewed analysis of

data demonstrating that the changes in tumors resulting from treatment

with our THT protocol activated a strong immune response in tumors

previously proven to be resistant to immunotherapy. To read the full, just

published paper in Frontiers In Immunology, click here.

 

We were also very gratified by the response to our ‘family and friends’

financing campaign in September, which was oversubscribed, raising

$3.1million in support of our efforts to develop our THT therapy and get it

into the clinic. We did this with the issuance of 12.575 million common

shares at $0.25 per share without a warrant attached.

 

Considering the question of whether Sona’s promising preclinical study

results will translate to humans, based on our novel approach and

mechanisms of activating immunity in cold tumors, we believe Sona’s THT

therapy to be a logical and elegant approach to rescuing cancer patients

whose tumors are not responding to current immunotherapies. Our local,

intra-tumoral, treatment delivery strategy is at the leading edge of current

research and medical thinking. What’s more, our treatment protocols

require minimal clinical infrastructure and technical resources to be

administered, making this technology ideally suitable for delivery in a

community clinical setting. This would offer a compelling addition or

alternative to the current standard ofc are for such patients.

 

“While we are still in the early stages, based on my 26 years of research in

the field of cancer biology and immunology, observing what has, and what

has not translated from preclinical studies to human clinical trials, I believe

that the relevant dynamics of a cancerous tumor’s microenvironment (the

target of our THT) is consistent across species which would make our THT

therapy ‘tumor agnostic’”, says our CMO, Dr. Carman Giacomantonio.

Looking to the future, our priority is to expand our horizon and continue to

build on our core technology. To this end, in 2024, in addition to receiving

official patent protection for our uniquely biocompatible GNRs, we also filed

provisional patents for a number of innovations that incorporate our GNR

platform into novel, cutting edge cancer therapies.

 

Near Infrared Light Conversion to Heat Using Sona’s GNRs

2024 also saw Sona advancing the key elements of its two-device system

used to provide THT: our laser light device and our GNRs. Our laser

provides the non-thermal light energy at an 860-nanometer wavelength

that passes harmlessly into tumors previously injected with our GNRs,

where it is converted to heat. We are very pleased with both how this

custom designed and built ‘beta model’ laser has performed and with how

we have learned to optimize its use in the application of THT.

 

Higher Standards of GNR Production at Sona Nanotech

We have also made significant improvements to our GNR manufacturing

process recently, having produced our largest batch ever, in record time.

These improvements have benefited from advancements made in our

Quality Management System. This improved, electronic quality system will

enable us to get to market faster, reduce regulatory audit time

requirements and provide the necessary quality framework to permit us to

pursue ISO 13485 certification, a key milestone for Sona Nanotech Inc. that

will eventually be required by regulators.

 

Thanks to Shareholders

Getting set up properly to maximize our chances for success in human

clinical trials has taken time, and we appreciate shareholders for their

patience as we follow this strategic approach to accelerate our way

forward. Having taken the time to establish a solid foundation will benefit

the business and should help us to garner wider recognition of our progress,

and prospects, with industry players and investors alike.

 

While there is still much to be done, we are delighted with where the

business currently stands and excited about the many tangible milestones

that lie ahead of us in 2025. As of now, it is clear that our therapy can turn

immunogenically ‘cold’ tumors into the ‘hot’ ones, potentially dramatically

improving response rates in patients with cancers currently receiving

immunotherapy, and importantly, presenting new opportunities for patients

with cancers currently not offered immunotherapy. We look forward to

demonstrating this potential advancement in cancer treatment soon and

sharing that data with you.

 

Our goals and aspirations for 2025 are ambitious, however, we are confident

that the platform we have put in place and the strategy we have set will

allow us to realize on them.

Yours sincerely,

David Regan                                           Dr. Carman Giacomantonio

Chief Executive Officer                         Chief Medical Officer

 

Please reach out at any time if you need any more information, or to set up

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website and follow us on Twitter, YouTube and LinkedIn. As always, we

encourage you to read this newsletter in conjunction with our material news

items, provided in our news releases, and our quarterly financial reporting.

 

This update does contain Forward-Looking Statements so please refer to

the Company’s Cautionary Note appended below.

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING

INFORMATION:

Information set forth in this letter contains forward-looking statements that

are based on assumptions as of the date of this letter. These statements

reflect management’s current estimates, beliefs, intentions, and expectations.

They are not guarantees of future performance. Words such as “expects”,

“aims”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”, “believes”,

“seeks”, “estimates”, “continues”, “may”, variations of such words, and similar

expressions and references to future periods, are intended to identify such

forward-looking statements. Sona Nanotech Inc. (“Sona” or the “Company”)

cautions that all forward-looking statements are inherently uncertain, and that

actual performance may be affected by a number of material factors, many of

which are beyond Sona’s control. These statements include those regarding

the anticipated applications and potential opportunities of Targeted

Hyperthermia Therapy, Sona’s preclinical and clinical study plans, Sona’s

intention to submit preclinical study results for peer reviewed publication,

Sona’s ability to secure a human trial, future patent filings and its product

development plans.

Forward-looking statements are necessarily based upon a number of assumptions or estimates that,

while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which

may cause the actual results and future events to differ materially from those

expressed or implied by such forward-looking statements, including the risk

that Sona may not be able to successfully obtain sufficient clinical and other

data to submit regulatory submissions, raise sufficient additional capital,

secure patents or develop the envisioned therapy, the risk that Sona’s

intended publications may not be accepted by a leading scientific journal and

the risk that THT may not prove to have the benefits currently anticipated.

There can be no assurance that such statements will prove to be accurate, as

actual results and future events could differ materially from those anticipated

in such statements. Accordingly, readers should not place undue reliance on

forward-looking statements. Sona disclaims any intention or obligation to

update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise, except as required bylaw. Except as

required under applicable securities legislation, Sona undertakes no obligation

to publicly update or revise forward-looking information. Sona does not

intend, and does not assume any obligation, to update these forward-looking

statements, except as required under applicable securities legislation. For

more information on Sona, readers should refer to Sona’s website

at www.sonanano.com.

Information set forth in this letter is intended to summarize or highlight the

Company’s results for the previous year based upon previously disclosed

results provided in the Company’s news releases and disclosures. Readers of

this letter should refer to the Company’s news releases, available on the

Company’s website or SEDAR.com, to obtain important additional technical

information and disclosure.