Mr. Andrew Patient reports

INTELLIPHARMACEUTICS ANNOUNCES CLOSING OF US$3.5 MILLION FINANCING

IntelliPharmaCeutics International Inc. has closed its previously announced registered direct offering consisting of 5,833,334 common shares at a price of 60 U.S. cents per share for gross proceeds of approximately $3.5-million (U.S.). The company also issued to the investors unregistered warrants to purchase an aggregate of 2,916,667 common shares at an exercise price of 60 U.S. cents per share. The warrants will be exercisable six months following the closing date and will expire 30 months after the date they become exercisable. After commissions and estimated offering expenses, the company received net proceeds of approximately $3.0-million (U.S.).

H.C. Wainwright & Co. acted as exclusive placement agent for the offering.

IntelliPharmaCeutics currently intends to use the net proceeds of this offering for general corporate purposes, which may include working capital, capital expenditures, research and development, accounts payable, and other commercial expenditures.

The common shares (but not the warrants or the common shares underlying the warrants) were offered by the company through a prospectus supplement pursuant to the company's shelf registration statement on Form F-3 as previously filed and declared effective by the Securities and Exchange Commission and the base prospectus contained therein (registration statement No. 333-218297). The warrants described herein were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder and, along with the common shares underlying the warrants, have not been registered under the act or applicable state securities laws. Accordingly, the warrants and underlying common shares may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the act and such applicable state securities laws. A prospectus supplement and accompanying base prospectus relating to the common share offering are available on the SEC's website.

The common share offering was made only by means of a prospectus and related prospectus supplement. Copies of the final prospectus supplement and accompanying base prospectus may also be obtained by contacting H.C. Wainwright & Co. at 430 Park Ave., fourth floor, New York, N.Y., 10022, by phone 646-975-6996 or e-mail placements@hcwco.com.

About IntelliPharmaCeutics International Inc.

IntelliPharmaCeutics International is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled- and targeted-release oral solid dosage drugs. The company's patented Hypermatrix technology is a multidimensional controlled-release drug delivery platform that can be applied to a wide range of existing and new pharmaceuticals. IntelliPharmaCeutics has developed several drug delivery systems based on this technology platform, with a pipeline of products (some of which have received U.S. Food and Drug Administration approval) in various stages of development. The company has abbreviated new drug application (ANDA) and new drug application (NDA) 505(b)(2) drug product candidates in its development pipeline.

We seek Safe Harbor.