ARHT Media Announces Closing of $2 Million Private Placement of Secured Subordinated Debentures

TORONTO, August 3, 2023 – ARHT Media Inc. (“ARHT” or the “Company”)
(TSXV:ART), (OTCQB:ARHTF) the global leader in the development, production and
distribution of high-quality, low latency hologram and digital content, is pleased to
announce that the Company has successfully closed a private placement (the “Private
Placement”) of secured subordinated debentures (the “Debentures”) in an aggregate of
approximately $2.03 million principal amount.

The Debentures mature on August 3, 2025 (the “Maturity Date”) and carry an annual
interest rate of 15%, accrued and payable semi-annually on each of June 30 and
December 31, payable in cash or shares at the option of the Company and subject to
the approval of the TSX Venture Exchange (the “TSXV”). Subject to certain conditions,
the Company will have the right to prepay any or part of the Debentures at any time
prior to the Maturity Date by paying the principal amount of the Debentures. The
principal amount of the Debentures are not convertible into common shares or any other
securities of the Company.

The Debentures are secured by substantially all of ARHT’s assets. The security interest
in collateral, comprising of accounts receivable and inventory will be subordinated to the
Company’s current senior lender’s security interest.

The Debentures are subject to a four-month statutory hold period commencing on the
date of their issuance. Subject to the foregoing, the Debenture may not be assigned,
transferred or resold, except upon the prior written consent of the Company. An
aggregate of $763,000 principal amount of the Debentures were purchased by officers
and directors of the Company and are exempt from the formal valuation and minority
approval provisions of National Instrument 61-101 – Protection of Minority Security
Holder in Special Transactions. The Company has paid an aggregate of $11,100 in
cash and issued an aggregate of 100,000 common shares as finders’ fees to certain
finders in accordance with TSX Venture Exchange policies.

The Company intends to use the net proceeds from the Private Placement for general
working capital purposes to support the Company’s growth.

About ARHT
ARHT is a pioneer and the global leader in live hologram technology. Thanks to its
patented end-to-end technology, executives, medical experts, educators, entertainers,
and thought leaders can travel at the speed of light to any destination.
ARHT was founded in 2014 and is publicly traded on the TSX Venture Exchange. ARHT
has offices in North America, Europe and Asia and operates from its own studios in
locations from Toronto to Sydney, as well as a large network of partner studios in every

Connect with ARHT:

For more information, please visit or
Alternatively, email us directly at [email protected].
ARHT trades under the symbol “ART” on the TSX Venture Exchange.

Press Inquiries:
Kristen Spence
[email protected]

Hanna Ayyad
Chief Financial Officer
+1 (416)-782-8042 (head office)

This press release contains “forward-looking information” within the meaning of
applicable Canadian securities legislation. Forward-looking information includes, but is
not limited to, disclosure related to the Company’s sales funnel; the Company’s
technology; the potential uses for the Company’s technology; the future planned events
using the Company’s technology; the future success of the Company; the ability of the
Company to monetize the ARHT Media technology; the development of the Company’s
technology; and interest from parties in ARHT’s products. Generally, forward-looking
information can be identified by the use of forward-looking terminology such as “plans”,
“expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations
of such words and phrases or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information
is subject to known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such forward-looking
information, including but not limited to: general business, economic and competitive
uncertainties; regulatory risks; risks inherent in technology operations; and other risks of
the technology industry. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable securities laws.


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