Blue Star Regulatory News (BLU)

29 September 2020

Blue Star Capital plc

("Blue Star" or the "Company")

Guild Esports Investment Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, is pleased to provide the following update regarding its investee company Guild Esports plc ("Guild").

Blue Star notes that Guild has today published its prospectus, which has been approved by the UK Listing Authority, for admission of Guild's ordinary shares to the standard listing segment of the Official List of the UK Listing Authority and to trading on the Main Market for listed securities of the London Stock Exchange ("Admission").

Guild also announced that it has raised gross proceeds of £20.0 million at 8 pence per share ("Placing Price"), valuing Guild at approximately £41.2 million at the Placing Price. Admission is expected to occur on 2 October 2020.

Blue Star has, to date, invested approximately £706,000 in Guild and, on Admission, Blue Star will hold approximately 5.95 per cent. of the issued share capital of Guild valuing its investment, at the Placing Price, at £2.45 million. In conjunction with other shareholders, Blue Star has entered into a lock-in and orderly market arrangement for 12 months.

The board of the Company is pleased with the performance of its investment in Guild and, more broadly, the development of its esports portfolio. Since making its initial investments in November 2019 the sector has performed strongly. In addition to the strong performance of Guild, Dynasty eSports Pte Ltd ("Dynasty") has also achieved significant momentum and has recently raised further funds of approximately £1.75 million, valuing the Company's investment at £1.3 million. The Company has, to date, invested £428,000 in Dynasty and holds 13 per cent. of its issued share capital following its last fundraise.

All of the Company's other esports investments are being held at cost of approximately £715,000.

Tony Fabrizi, CEO of Blue Star said, "The successful IPO of Guild is an excellent illustration of the potential upside from Blue Star's esports portfolio. We believe Guild has an exciting future as a listed company and expect to see our portfolio deliver strong performance as the sector grows in strength."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Blue Star Capital plc

Blue Star is an investing company with a focus on new technologies. Blue Star's investments include a 27.7% holding in SatoshiPay, a payments business using blockchain technology; investments in 7 early stage esports companies with shareholdings ranging from 9.6% to 18% and a 0.9% investment in Sthaler, an identity and payments technology business which enables a consumer to identify themselves and pay using just their finger.