Filed by newsfilecorp.com Helius Medical Technologies Inc. and A&B Company Limited Enter Into Strategic Agreement For The Development of PoNS TM Therapy in China, Hong Kong, Macao, Taiwan and Singapore. A&B HK) Ltd Provi

Helius Medical Technologies Inc. and A&B Company Limited

Enter Into Strategic Agreement For The Development of

PoNSTM Therapy in China, Hong Kong, Macao, Taiwan and

A&B HK) Ltd Provides US $7.0M Funding Commitment to

Helius Medical Technologies Inc.

Newtown PA, and HONG KONG, October 13, 2015 Helius Medical

Technologies Inc. (CSE: HSM; OTCQB: HSDT) ( Helius or the Company ) announced

today that it has entered into strategic agreements with A&B Company Limited

( A&B ) for the development and commercialization of the Portable

Neuromodulation Stimulator ( PoNS ) Therapy in China, Hong Kong, Macao, Taiwan

and Singapore (the Territories ). A&B is an investment and development

company based in Hong Kong owned by Dr. Kong Lam.

The agreement, a sale and licensing transaction, transfers

ownership of certain Asian patents, patent applications, and product support

material for the PoNSTM device to A&B. A&B assumes all

development, patent (both application and defense), future manufacturing,

clinical trial, and regulatory approval costs for the Territories. Helius and

A&B will share and transfer ownership of any intellectual property or

support material (developed by either party) for their respective

Helius PoNSTM device is being investigated for its

safety and effectiveness in the treatment of chronic neurological symptoms

caused by disease or trauma. In the United States, it is being investigated in a

registrational clinical trial for the treatment of balance disorder in patients

with mild to moderate traumatic brain injury and the Company expects to submit

the PoNSTM to the US Food and Drug Administration (the US FDA ) for

Philippe Deschamps, CEO of Helius, said: We are very pleased

to enter into this collaboration with A&B. Helius believes collaborating

with an innovator in Asia will not only accelerate product evolution, but it

will also provide us with a partner suited to both expand and defend

intellectual property rights in these key markets.

Commenting on the announcement, Dr. Lam Kong, owner of A&B,

said: It s a pleasure for A&B to establish a strategic relationship with

Helius. There are currently no effective medical devices for the chronic

neurological symptoms of traumatic brain injury. Bringing this potentially life

changing technology to this significant and underserved market is an exciting

prospect for A&B and fits with our vision to provide innovative solutions to

Helius, as a manufacturer of the PoNS, will receive:

An ongoing fee relating to the amount paid by A&B for

PoNSTM devices and relevant components purchased by A&B from NHC,

an affiliate of Helius, or its designated manufacturer for the licensed

A one-time milestone payment once a certain sales milestone is

A&B Funding Commitment:

A&B will provide a US$7.0 mln credit facility. The first

US$2.0 mln of this facility will be immediately drawn down and convertible

promissory note issued. As agreed, Helius will repay the US $2.0 mln note

through the issuance of approximately 2.083 mln shares of Helius at a price of

US $0.96/share and approximately 1.042 mln, 3-year, warrants at an exercise

Helius, at the Company s option, can draw down the remaining US

$5.0 mln in the facility within six month through issuing additional shares and

warrants at a price scheme agreed to by both parties. The facility cannot be

cancelled or withdrawn unless there is an event of default by Helius as defined

in the document or some material obstacle with regards to the PoNSTM

obtaining eventual regulatory approval in the United States.

As long as terms of the credit facility remain competitive

Helius intends to, but is not obliged to, draw against the remainder of the

credit facility within the next six months to fund PoNSTM continued

All securities issues with respect to the credit facility will

be subject to a four-month statutory hold period.

About Helius Medical Technologies (HMT)

Helius Medical Technologies is a medical technology holding

company focused on neurological wellness. HMT seeks to develop, license and

acquire unique, non-invasive platform technologies that amplify the brain s

ability to heal itself. HMT intends to file for U.S. Food and Drug

Administration clearance for the PoNS device. For more information, please

visit www.heliusmedical.com.

About A&B (HK) Company Limited

A&B (HK) Company Limited is an investment and development

company based in Hong Kong, which is wholly-owned by Dr. Lam Kong.

Cautionary Disclaimer Statement:

The Canadian Securities Exchange has not reviewed and does

not accept responsibility for the adequacy or accuracy of the content of this

This news release contains forward-looking statements relating

to the successful development of the Company s PoNSTM device and

other statements that are not historical facts. Forward-looking statements are

often identified by terms such as will , may , should , anticipate ,

expects and similar expressions. All statements other than statements of

historical fact, included in this release are forward-looking statements that

involve risks and uncertainties. There can be no assurance that such statements

will prove to be accurate and actual results and future events could differ

materially from those anticipated in such statements. Important factors that

could cause actual results to differ materially from the Company s expectations

include the failure to satisfy the conditions of the Canadian Securities

Exchange and other risks detailed from time to time in the filings made by the

Company with securities regulations.

The reader is cautioned that assumptions used in the

preparation of any forward-looking information may prove to be incorrect. Events

or circumstances may cause actual results to differ materially from those

predicted, as a result of numerous known and unknown risks, uncertainties, and

other factors, many of which are beyond the control of the Company. The reader

is cautioned not to place undue reliance on any forward-looking information.

Such information, although considered reasonable by management at the time of

preparation, may prove to be incorrect and actual results may differ materially

from those anticipated. Forward-looking statements contained in this news

release are expressly qualified by this cautionary statement. The

forward-looking statements contained in this news release are made as of the

date of this news release and the Company will update or revise publicly any of

the included forward-looking statements as expressly required by applicable law.