Also reports Financial Results for the 3 months ended March 31, 2022

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a sales force that currently markets third party or exclusively licensed products for which the Company receives revenues from direct product sales and profit share arrangements, today reported financial results for the year ended December 31, 2021 (“Fiscal 2021”) and the three months ended March 31, 2022 (“Q1 2022”), and reports associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

Mr. Janzen commented “Waiting for our auditors to complete their audit of the annual financial statement have been frustrating for both ourselves and our shareholders. The delay was due to a significant number of new information requests from our auditors to our commercial partners. No material weaknesses in Aequus controls or policies were identified as the cause of the delay in filing our financials and we are very grateful to our commercial partners for the significant time they spent with our auditors to complete our annual audit. Now that our Fiscal 2021 and Q1 2022 financial statements have been filed we expect Aequus shares to resume trading on the TSX-V on or before July 8, 2022.”

The year ended December 31, 2021 was the final year of the Sandoz original agreement terms and was the highest gross revenue year in the history of the Company. The first quarter is traditionally our weakest quarter and the first half of 2022 is expected to be a transition period as we adjust to lower Tacrolimus revenues and enter into agreements with partners to add additional products.

“I personally entered into a $2,000,000 loan agreement with the Company last month because I believe in our ability to continue to grow revenues and add new products at Aequus. This loan should allow the Company to bridge Q1 revenue weakness given the amended Sandoz contract terms announced last January.”

On May 9, 2022, the Company was the subject of a failure-to-file cease trade order (“CTO”) issued by the British Columbia Securities Commission (“BCSC”) pending the filing of the Company’s annual audited financial statements, Management disclosure and analysis and Annual Information Form for the 2021 financial year (collectively, the “2021 Annual Disclosure”). The delayed filing of our 2021 Annual Disclosure resulted from delays in our auditor’s obtaining information they needed from third parties, which delayed necessary audit procedures beyond our annual filing deadlines. As a consequence of the CTO, the BCSC suspended trading of the Company’s securities. The audit of the annual financial statements is now complete, and the Company believes it is now current with its continuous disclosure obligations, however, the CTO will remain in place until the BCSC has issued a revocation order. The Company’s management, audit committee and board will discuss actions to prevent this type of issue from happening again.

Balance Sheet highlights

Key Fiscal 2021 Financial Highlights

Key Q1 2022 Unaudited Financial Highlights

ABOUT AEQUUS PHARMACEUTICALS INC.

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

FORWARD-LOOKING STATEMENT DISCLAIMER

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to: our ability to continue to grow revenues and add new products; the two million dollar loan allowing us to bridge Q1 revenue decreases given the amended Sandoz contract; the expectation that Q1 2022 is a transition period as we look to add to our product offerings; the implementation of our business model and strategic plans; revenue growth trends into the future; expected timing for product launches; the Company’s expected revenues; the regulatory approval of its products; and the revocation of the CTO. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining regulatory approvals; general business and economic conditions; the Company’s ability to successfully out license or sell its current products and in-license and develop new products; the assumption that the Company’s current good relationships with third parties will be maintained; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; the impact of the coronavirus (COVID-19) on the Company’s operations; and the Company’s ability to protect patents and proprietary rights. In evaluating forward looking statements, current and prospective shareholders should specifically consider various factors set out herein and under the heading “Risk Factors” in the Company’s Annual Information Form dated June 30, 2022, a copy of which is available on Aequus’ profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus’ SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward looking statements.

Neither 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.

Vistitan^TM: Trademark owned or used under license by Sandoz Canada Inc.

CONTACT INFORMATION
Aequus Investor Relations
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Phone: 604-336-7906