DIRTT Announces Exercise in Full of Over-Allotment Option

DIRTT Environmental Solutions Ltd. (“DIRTT” or the “Company”) (TSX:DRT, NASDAQ:DRTT), an interior construction company that uses proprietary software to design, manufacture and install fully customizable environments, is pleased to announce that the Underwriters (as defined below) have exercised in full and closed on their over-allotment option (the "Over-Allotment Option") to purchase up to an additional C$5.25 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures in connection with the previously announced offering, which closed on January 25, 2021 (the "Offering"). As a result of the Underwriters' exercise of the Over-Allotment Option in full, the aggregate gross proceeds of the Offering were C$40.25 million.

The debentures issued pursuant to the Offering were offered to the public through a syndicate of underwriters (the "Underwriters") led by National Bank Financial Inc.

A portion of the net proceeds from the Offering, together with the Company’s leasing facilities and cash reserves on hand, will be used for capital expenditures, including investments in the Company’s technology innovation, with the remaining portion being used for working capital, and general corporate purposes, including continued investments in the Company's sales and marketing functions.

The debentures issued pursuant to the Offering are listed on the Toronto Stock Exchange under the symbol “DRT.DB”.

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including the proposed use of proceeds from the Offering. In some cases, forward-looking information can be identified by such terms as "will" and "expected". Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. The Company's estimates, beliefs and assumptions, which may prove to be incorrect. The risks and uncertainties that may affect forward-looking information include, but are not limited to, market conditions, the effect of COVID-19 on the Company's operations, business and financial results, and other factors discussed under "Risks Factors" in the Company’s management's discussion and analysis for the three and nine months ended September 30, 2020, and in the Company's Annual Report on Form 10-K dated February 25, 2020, both of which are available on SEDAR (www.sedar.com) and on the SEC’s website (www.sec.gov). The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.