Nanotech Closes $2.6 Million Financing

Strengthened Balance Sheet Provides Working Capital to Service Increased Business

VANCOUVER, BC / ACCESSWIRE / August 26, 2015 / Nanotech Security Corp. (TSXV: NTS) (OTCQX: NTSFF), (“Nanotech” or the “Company”) today announced that it has completed a private placement financing of $2,655,000 million of equity units sold at $1.00 each. A combination of institutional and accredited investors made up the majority of the offering along with approximately $175,575 sold to insiders and employees.

Commenting on the financing Doug Blakeway, CEO of Nanotech said “We were pleased with the strong interest shown in this financing which went quickly despite the tough market conditions. This financing along with our existing cash on hand provides the Company with enough working capital to ramp-up for sales opportunities for optical thin film and KolourOptik nano-optical banknote products which are now presenting themselves in greater numbers than ever.”

Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of CAD$1.50 per common share for a period of 18 months from the closing of the Offering. The warrants are subject to accelerated expiry in the event that the common shares of the Company trade on the TSX Venture Exchange at CAD$1.80 or more for a ten consecutive day period; 1) after the four month resale restricted period applicable to the Common Shares in Canada expires and 2) before the end of the initial 12 months of the term of the warrant. All securities issued in connection with the placement are subject to a hold period expiring on December 27, 2015.

About Nanotech Security

Through its Security Features and Surveillance divisions, Nanotech Security Corp. has been a leading innovator in the design and production of advanced security products and surveillance solutions for a number of years. The Company’s Security Features Division produces intense, high definition optically-variable images and colour-shift optical thin films, which are ideal for authentication of currency, passports, and identification cards in addition to distinguishing branded goods from counterfeits. Activated by a simple tilt or rotation, with higher resolutions than the best LED-displays, Nanotech’s KolourOptik(TM) and Plasmogram(TM) optically-variable image products are nanotechnology-based product platforms originally inspired by the unique optical properties of the iridescent wings of the Blue Morpho butterfly. The Company’s Surveillance division designs, manufactures, and sells sophisticated surveillance and intelligence gathering communications and forensic equipment and conducts surveillance training for the law enforcement and intelligence community in the United States and Canada.

Additional information about Nanotech can be found at the Company’s website www.nanosecurity.ca, the Canadian disclosure filings website www.sedar.com or the OTCMarkets disclosure filings website www.otcmarkets.com.

Nanotech Security Corp:

Doug Blakeway
dblakeway@nanosecurity.ca
+1.604.678.5775

Canada Investor Relations:

Sean Peasgood
sean@SophicCapital.com
+1.416.565.2805

Media Contact:

Jackie Henry
jp@nanosecurity.ca

U.S. Investor Relations:

Dave Mossberg
dmossberg@threepa.com
+1.817.310.0051

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.

SOURCE: Nanotech Security Corp.

ReleaseID: 431542