FORM F3 REQUIRED DISCLOSURE BY AN ELIGIBLE INSTITUTIONAL INVESTOR UNDER PART 4

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Candace Sharp
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1 FORM F3 REQUIRED DISCLOSURE BY AN ELIGIBLE INSTITUTIONAL INVESTOR UNDER PART 4 Item 1 Security and Reporting Issuer 1.1 State the designation of securities to which this report relates and the name and address of the head office of the issuer of the securities. The report relates to common shares ( Common Shares ) in the capital of HLS Therapeutics Inc. ( HLS ) with its head office at 10 Carlson Court, Suite 410, Etobicoke, Ontario, Canada M9W 6L State the name of the market in which the transaction or other occurrence that triggered the requirement to file this report took place. See Item 2.2. Item 2 Identity of the Eligible Institutional Investor 2.1 State the name and address of the eligible institutional investor. HealthCor Management, L.P. ( HealthCor ) and HealthCor Partners Management, L.P. ( HealthCor Partners and together, the Advisers ), as investment managers for certain funds (the Funds ) Carnegie Hall Tower 152 West 57 th Street, 43 rd Floor New York, NY 10019, U.S.A 2.2 State the date of the transaction or other occurrence that triggered the requirement to file this report and briefly describe the transaction or other occurrence. On March 12, 2018 HLS amalgamated with Automodular Corporation pursuant to a plan of arrangement under section 182 of the Business Corporations Act (Ontario) as part of a reverse takeover transaction (the Arrangement ). As a result of the Arrangement, the Funds acquired ownership of an aggregate of 5,500,000 Common Shares. 2.3 State the name of any joint actors. Collectively, HealthCor Partners Fund II, L.P., HealthCor Offshore Master Fund, L.P. and HealthCor Sanatate Offshore Master Fund, L.P. (each a "Fund" and together, the "Funds") are the beneficial owners of a total of 5,500,000 Common Shares. HealthCor Partners II, L.P. is the general partner of HealthCor Partners Fund II, L.P. Accordingly, HealthCor Partners II, L.P. may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Partners Fund II, L.P. HealthCor Partners GP, LLC is

2 - 2 - the managing member of HealthCor Partners II, L.P. and, therefore, may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Partners Fund II, L.P. HealthCor Offshore GP, LLC is the general partner of HealthCor Offshore Master Fund, L.P. Accordingly, HealthCor Offshore GP, LLC may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Offshore Master Fund, L.P. HealthCor Group, LLC is the managing member of HealthCor Offshore GP, LLC and, therefore, may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Offshore Master Fund, L.P. HealthCor Offshore II GP, LLC is the general partner of HealthCor Sanatate Offshore Master Fund, L.P. Accordingly, HealthCor Offshore II GP, LLC may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Sanatate Offshore Master Fund, L.P. HealthCor Group, LLC is the managing member of HealthCor Offshore II GP, LLC and, therefore, may be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Sanatate Offshore Master Fund, L.P. By virtue of its position as investment manager of HealthCor Partners Fund II, L.P., HealthCor Partners Management, L.P. may be may be deemed a beneficial owner of the Common Shares owned by HealthCor Partners Fund II, L.P. HealthCor Partners Management GP, LLC is the general partner of HealthCor Partners Management, L.P. and thus may also be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Partners Fund II, L.P. By virtue of its position as investment manager of HealthCor Offshore Master Fund, L.P. and HealthCor Sanatate Offshore Master Fund, L.P., HealthCor may be may be deemed a beneficial owner of all the Common Shares owned by HealthCor Offshore Master Fund, L.P. and HealthCor Sanatate Offshore Master Fund, L.P. HealthCor Associates, LLC is the general partner of HealthCor Management, L.P. and thus may also be deemed to beneficially own the Common Shares that are beneficially owned by HealthCor Offshore Master Fund, L.P. and HealthCor Sanatate Offshore Master Fund, L.P. As the Managers of HealthCor Partners Management GP, LLC, Arthur Cohen, Joseph Healey and Jeffrey C. Lightcap exercise both voting and investment power with respect to the Common Shares reported herein as being beneficially owned by HealthCor Partners Management GP LLC, and therefor may be deemed a beneficial owner of such Common Shares. As the Managers of HealthCor Associates, LLC, Arthur Cohen and Joseph Healey exercise both voting and investment power with respect to the Common Shares reported herein as being beneficially owned by HealthCor Associates, LLC, and therefore each may be deemed a beneficial owner of such Common Shares. The Advisers and each of the parties named in this Item 2.3, other than the Funds, hereby disclaim any beneficial ownership of any such Common Shares in excess of their actual pecuniary interest therein.

3 State that the eligible institutional investor is eligible to file reports under Part 4 in respect of the reporting issuer. Each Adviser is an eligible institutional investor pursuant to section 1.1(1) of NI and is eligible to file reports under Part 4 of NI in respect of HLS. Item 3 Interest in Securities of the Reporting Issuer 3.1 State the designation and the net increase or decrease in the number or principal amount of securities, and in the eligible institutional investor s securityholding percentage in the class of securities, since the last report filed by the eligible institutional investor under Part 4 or the early warning requirements. This is each Adviser s first report under Part 4 of NI in respect of HLS. Pursuant to the Arrangement, the Funds managed by the Advisers acquired ownership of an aggregate of 5,500,000 Common Shares. The Common Shares represent approximately 20.05% of the issued and outstanding Common Shares. 3.2 State the designation and number or principal amount of securities and the eligible institutional investor s securityholding percentage in the class of securities at the end of the month for which the report is made. As at March 31, 2018, the Advisers, through the Funds, had control and direction over a total of 5,500,000 Common Shares, representing approximately 20.05% of the issued and outstanding Common Shares. 3.3 If the transaction involved a securities lending arrangement, state that fact. 3.4 State the designation and number or principal amount of securities and the percentage of outstanding securities of the class of securities to which this report relates and over which (a) the eligible institutional investor, either alone or together with any joint actors, has ownership and control, (b) the eligible institutional investor, either alone or together with any joint actors, has ownership but control is held by persons or companies other than the eligible institutional investor or any joint actor, and (c) the eligible institutional investor, either alone or together with any joint actors, has exclusive or shared control but does not have ownership.

4 - 4 - The Advisers, on behalf of the Funds, have control and direction over 5,500,000 Common Shares, as disclosed above in Item If the eligible institutional investor or any of its joint actors has an interest in, or right or obligation associated with, a related financial instrument involving a security of the class of securities in respect of which disclosure is required under this item, describe the material terms of the related financial instrument and its impact on the eligible institutional investor s securityholdings. 3.6 If the eligible institutional investor or any of its joint actors is a party to a securities lending arrangement involving a security of the class of securities in respect of which disclosure is required under this item, describe the material terms of the arrangement including the duration of the arrangement, the number or principal amount of securities involved and any right to recall the securities or identical securities that have been transferred or lent under the arrangement. State if the securities lending arrangement is subject to the exception provided in section 5.7 of NI If the eligible institutional investor or any of its joint actors is a party to an agreement, arrangement or understanding that has the effect of altering, directly or indirectly, the eligible institutional investor s economic exposure to the security of the class of securities to which this report relates, describe the material terms of the agreement, arrangement or understanding. Item 4 Purpose of the Transaction State the purpose or purposes of the eligible institutional investor and any joint actors for the acquisition or disposition of securities of the reporting issuer. Describe any plans or future intentions which the eligible institutional investor and any joint actors may have which relate to or would result in any of the following: (a) the acquisition of additional securities of the reporting issuer, or the disposition of securities of the issuer; (b) a sale or transfer of a material amount of the assets of the reporting issuer or any of its subsidiaries; (c) a change in the board of directors or management of the reporting issuer, including any plans or intentions to change the number or term of directors or to fill any existing vacancy on the board; (d) a material change in the present capitalization or dividend policy of the reporting issuer; (e) a material change in the reporting issuer s business or corporate structure; (f) a change in the reporting issuer s charter, bylaws or similar instruments or another action which might impede the acquisition of control of the reporting issuer by any person;

5 - 5 - (g) a class of securities of the reporting issuer being delisted from, or ceasing to be authorized to be quoted on, a marketplace; (h) the issuer ceasing to be a reporting issuer in any jurisdiction of Canada; (i) a solicitation of proxies from securityholders; (j) an action similar to any of those enumerated above. The Advisers acquired the Common Shares on behalf of the Funds for investment purposes. The Advisers intend to continuously review the Funds investment in HLS and may in the future determine (i) to acquire additional securities of HLS, through open market purchases, offerings, private agreements or otherwise, (ii) to dispose of all or a portion of the securities of HLS owned by them, (iii) to engage in hedging or similar transactions involving securities relating to HLS (or its affiliates or subsidiaries) or the Common Shares, or (iv) to take any other available course of action, which could involve one or more of the types of transactions or have one or more of the results, as specified in clauses (a) through (j) of Item 4. The Advisers specifically reserve the right to change their intention with respect to any or all of such matters. In reaching any decision as to their courses of action (as well as to the specific elements thereof), the Advisers currently expect that they would take into consideration a variety of factors, including, but not limited to, the following: HLS business and prospects; other developments concerning HLS and its business generally; other business opportunities available to the Funds; concentration of positions in the portfolios managed by the Advisers; developments with respect to the business of the Funds; changes in law and government regulations; general economic conditions and the conditions in the industries served by the Advisers and HLS, respectively; and money and stock market conditions, including the market price of the securities of HLS. Item 5 Agreements, Arrangements, Commitments or Understandings With Respect to Securities of the Reporting Issuer Describe the material terms of any agreements, arrangements, commitments or understandings between the eligible institutional investor and a joint actor and among those persons and any person with respect to securities of the class of securities to which this report relates, including but not limited to the transfer or the voting of any of the securities, finder s fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies. Include such information for any of the securities that are pledged or otherwise subject to a contingency, the occurrence of which would give another person voting power or investment power over such securities except that disclosure of standard default and similar provisions contained in loan agreements need not be included. On December 21, 2017, the Advisers entered into a lock-up agreement pursuant to which they agreed not to sell, transfer, assign or pledge, for and on behalf of the Funds, the Common Shares for a period commencing on March 12, 2018 and ending at the close of trading on the date that is 180 days after March 12, The agreement excludes any shares of HLS that the Advisers may acquire on behalf of the Funds through open market transactions after March 12, 2018.

6 - 6 - Item 6 Change in Material Fact If applicable, describe any change in a material fact set out in a previous report filed by the eligible institutional investor under the early warning requirements or Part 4 in respect of the reporting issuer s securities. Item 7 Certification I, Anabelle Perez Gray, General Counsel and Chief Compliance Officer of HealthCor Management, L.P. and HealthCor Partners Management, L.P. certify to the best of my knowledge, information and belief, that the statements made in this report are true and complete in every respect. Dated: April 9, 2018 (signed) Anabelle Perez Gray Name: Anabelle Perez Gray Title: General Counsel and Chief Compliance Officer

The Saskatchewan Gazette PUBLISHED WEEKLY BY AUTHORITY OF THE QUEEN S PRINTER/PUBLIÉE CHAQUE SEMAINE SOUS L AUTORITÉ DE L IMPRIMEUR DE LA REINE

THE SASKATCHEWAN GAZETTE, JULY 15, 2016 617 The Saskatchewan Gazette PUBLISHED WEEKLY BY AUTHORITY OF THE QUEEN S PRINTER/PUBLIÉE CHAQUE SEMAINE SOUS L AUTORITÉ DE L IMPRIMEUR DE LA REINE PART II/PARTIE