FORMATION Esports Investment

23 September 2020

Blue Star Capital plc

("Blue Star" or the "Company")

FORMATION Esports Investment

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 announce that it has invested €125,000 (approximately £115,500) in FORMATION Esports SAS ("Formation").

Formation has been recently incorporated in France with the support of the UNIQORN incubator-accelerator to focus on esport opportunities within contact sports. The purpose of the fundraise, in which the Company has participated, is to provide Formation with funds to launch a dedicated esports platform aimed at providing contact sports clubs with revenue and sponsorship generating opportunities and increased exposure.

The board of Formation estimates that contact sports, most notably rugby, have a global fan base of over 3 billion people, however, these sports have received little attention from the esports sector. It is the intention of the board of Formation to cover the entire spectrum of contact sports fans and clubs. In addition, Formation expects to launch its own academy with physical workshops across France and Europe.

Among other initiatives, Formation is in the process of finalising a relationship with Betway Africa's virtual sports platform and has built a platform to engage and convert those customers.

Terms of the Investment

Pursuant to the terms of the investment, the Company has subscribed for 12,500,000 new ordinary shares, totalling €125,000, representing a holding of 9.6 per cent of Formation. The Company has participated alongside other investors and has been provided with limited warranties and it has been granted certain information and antidilution rights.

Derek Lew, a director of the Company, is a shareholder of Formation. Derek Lew is also participating in Formation's fundraise and expects to hold approximately 4 per cent of Formation's enlarged issue share capital upon completion.

Tony Fabrizi, CEO of Blue Star said, "We are pleased to invest in FORMATION esports, which continues our investment focus on esports. As with our other esports investments, we have managed to secure a sizeable stake in an early stage business where we see considerable potential. Our existing portfolio continues to make strong progress and we look forward to updating the market with further news as the year progresses."

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 11% 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.