Blue Star Regulatory News (BLU)

9 June 2020

Blue Star Capital plc

("Blue Star" or the "Company")

Placing and Issue of Equity

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, announces that it has raised £500,000 before expenses by way of a placing of 416,666,666 new ordinary shares ("Placing Shares") at 0.12p each (the "Placing") to provide the Company with additional working capital and provide funds to invest into new and existing opportunities.

As part of the Placing, Paniolo Ventures Inc., a Canadian investment fund, has invested £250,000 comprising 208,333,333 Placing Shares which represents 5.55 per cent. of the enlarged issued share capital. Further, Nicholas Slater, an existing shareholder who holds 357,953,960 shares representing 10.72 per cent of the Company's issued share capital, has invested £175,000 comprising 145,8333,333 Placing Shares. As a result of his participation in the Placing, Mr Slater who is a substantial shareholder in the Company, will be interested in 503,787,293 ordinary shares representing 13.41 per cent. of the Company's enlarged issued share capital.

The Company has conditionally granted investors a warrant to subscribe for new shares equal to the number of Placing Shares acquired in the Placing. As a result, the Company has, subject to Admission (defined below), conditionally granted warrants to subscribe for 416,666,666 ordinary shares at a price of 0.175p per share with an expiry date of one year from the date of grant being 8 June 2021.

The new ordinary shares will rank pari passu with the existing ordinary shares. Application will shortly be made to the London Stock Exchange to admit the new ordinary shares to trading on AIM ("Admission"). Admission of the new ordinary shares is expected to occur on or around 12 June 2020.

Related Party Transaction

The participation in the Placing by Mr Slater constitutes a related party transaction under the AIM Rules for Companies as a result of him being a substantial shareholder. For the purposes of the related party transaction, the Company's directors are all considered to be independent.

The directors consider, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise 3,755,916,184 ordinary shares which may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules. The Company does not hold any shares in treasury.

Tony Fabrizi, CEO of Blue Star said: "We have taken this opportunity to raise funds to provide the Company with working capital and investment funds to allow us the flexibility to participate in future funding rounds of our portfolio companies during the remainder of the year. We are pleased to have our largest shareholder supporting the raise and to also introduce a new institutional investor to our shareholder base."

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 6 early stage esports companies with shareholdings ranging from 10% to 18% and a 0.9% investment in Sthaler, an identity and payments technology business which enables consumers to identify themselves and pay using just their finger.