Thalassa (di) Regulatory News (THAL)

Thalassa Holdings Ltd

(Reuters: THAL.L, Bloomberg: THAL:LN)

Trading Update

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

The board of Thalassa ("THAL" or "the Company") wishes to further update the market on Group trading.

The board is pleased to announce that it has completed the disposal of one of its "Miscellaneous Holdings" referred to in its announcement of 02 March 2020.

The Company sold its holding in Corridor Resources Inc. ("CDH") (CDH CN) (www.corridor.ca), now called Headwater Exploration Inc., with a gain of c.US$724,000 (+75%) on an investment of c.US$965,000, including Foreign Exchange movements. The Company first invested in CDH on 2 May 2019 and was still investing on 13 January 2020 when CDH announced a reorganisation transaction and the appointment of a new management team.

Duncan Soukup, Chairman of THAL stated:

"I am very happy to report the completion of THAL's successful investment in CDH. As a value investment, CDH ticked virtually all the boxes, valued at less than cash when we started buying, no debt, no controlling shareholder, profitable and generating free cash, but with a highly motivated substantial and largest shareholder, in the form of Sir Chris Hohn's TCI Fund Management (~19.5%). CDH was a veritable value buyer's dream with an extremely successful cornerstone shareholder with no liquidity. Our view was that sooner or later the 800lb gorilla would seek a liquidity event. Fortunately for us, it was sooner rather than later.

Whilst clearly pleased by the uplift in the share price during our investment period, we were unhappy with the terms of the reorganisation transaction, which allowed new management and their backers to purchase shares in CDH at a 30% discount to CDH's book value (no pre-emptive rights). These terms were not offered to pre-existing CDH shareholders. As we were unable to acquire a significant stake in what was clearly a massively mispriced asset, the decision was taken to divest the position."

END

www.thalassaholdingsltd.com

Note to Editors:

About Thalassa

Thalassa Holdings Ltd, incorporated and registered in the BVI, is a holding company with various interests across a number of industries.