Metals Update 23/07/2021

ThreeD Capital acquires 272,000 shares of Bluesky

Through a series of transactions ending July 22, 2021, ThreeD Capital Inc. and its joint actor acquired ownership and control of an aggregate of 272,000 common shares of Bluesky Digital Assets Corp. The subject shares represented approximately 0.70 per cent of all issued and outstanding common shares of the company. As a result of the acquisitions, the percentage ownership held by ThreeD and the joint actor increased by 2.2 per cent from its last early warning report filed in connection with the acquisition of Bluesky shares, from which ThreeD, with the joint actor, reported a 27.8-per-cent ownership on a partially diluted basis.

Immediately prior to the acquisitions, ThreeD and the joint actor owned and controlled an aggregate of 6,950,500 common shares, 4.9 million warrants and 500,000 options of Bluesky, representing approximately 19.0 per cent of all issued and outstanding common shares of the company (or approximately 29.4 per cent assuming exercise of the outstanding warrants and options).

Immediately following the acquisitions, ThreeD and the joint actor own and control an aggregate of 7,222,500 common shares, 4.9 million warrants and 500,000 options of Bluesky, representing approximately 19.6 per cent of all issued and outstanding common shares of the company (or approximately 30.0 per cent assuming exercise of the outstanding warrants and options). Of this total, ThreeD held an aggregate of 3,931,000 common shares and 2.7 million warrants of the company representing approximately 10.7 per cent of the issued and outstanding common shares of the company (or approximately 16.8 per cent assuming exercise of the warrants), and the joint actor held an aggregate of 3,291,500 common shares, 2.2 million warrants and 500,000 options of the company representing approximately 9.0 per cent of the issued and outstanding common shares of the company (or approximately 15.2 per cent on a partially diluted basis, assuming exercise of the warrants and options held).

The subject shares were purchased through the facilities of the Canadian Securities Exchange. The holdings of securities of the company by ThreeD are managed for investment purposes, and ThreeD could increase or decrease its investments in the company at any time, or continue to maintain its current position, depending on market conditions or any other relevant factor.

The trade was effected in reliance upon the exemption contained in Section 2.3 of National Instrument 45-106 on the basis that ThreeD is an accredited investor.