Stormcrow Holdings Corp. Provides Update on Qualifying Transaction with Highmark Interactive and Details of Concurrent Financing Led by Beacon Securities Limited

Toronto, Ontario--(Newsfile Corp. - May 10, 2021) - Stormcrow Capital Inc. (TSXV: CROW.P) ("Stormcrow" or the "Company") is providing an update on the arm's length transaction with Highmark Interactive ("Highmark"), a company existing under the laws of Ontario, previously announced in a news release dated December 11, 2020, by which the parties intend to effect a reverse takeover of Stormcrow by Highmark, which transaction will constitute Stormcrow's qualifying transaction under TSX Venture Exchange ("TSXV") Policy 2.4 (the "Proposed Transaction"). Trading in the common shares of Stormcrow ("Stormcrow Shares") has been halted in accordance with TSXV policies since the date of the initial announcement, and will remain halted until such time as all required documentation has been filed with and accepted by the TSXV in connection with the Proposed Transaction. There can be no assurances that the Proposed Transaction will be completed on the terms set out below or at all.

The Proposed Transaction

Prior to completion of the Concurrent Financing and the Acquisitions (each as described and defined below) Highmark currently has the following securities issued and outstanding: (i) 15,327,438 common shares (the "Highmark Shares"); (ii) 1,557,500 options; (iii) 1,677,495 warrants; and (iv) secured promissory notes in the aggregate principal amount of $231,400 (the "Highmark Notes"). Pursuant to the Proposed Transaction: (i) $81,400 in principal amount of the Highmark Notes (together with all accrued and unpaid interest thereon) will be converted into Highmark Shares and warrants to purchase Highmark Shares on the same terms as the Warrant in the Concurrent Financing (each as defined below); (ii) holders of issued and outstanding Highmark Shares will receive Stormcrow Shares (post-consolidation) at a deemed issuance price of $0.60 per Stormcrow Share for each Highmark Share at a ratio to be determined after completion of the Concurrent Financing the ("Exchange Ratio"); and (iii) all options, warrants or other securities convertible into Highmark Shares shall be exchanged, based on the Exchange Ratio, for similar securities to purchase Stormcrow Shares on substantially similar terms and conditions. It is anticipated that, immediately following completion of the Proposed Transaction, including the Concurrent Financing (as described below) and the Acquisitions, existing Highmark shareholders will hold approximately 91% of the Resulting Issuer Shares (on a non-diluted basis) with the existing shareholders of Stormcrow holding approximately 9%. In connection with the Proposed Transaction, it is anticipated that Stormcrow will issue an aggregate of 35,674,503 post-Consolidation Stormcrow Shares to the shareholders of Highmark, on a pro-rata basis, on closing of the Proposed Transaction in exchange for all of the issued and outstanding securities of Highmark. The number of post-Consolidation Stormcrow Shares to be issued may be adjusted depending on the final Exchange Ratio determined by the parties to be appropriate in connection with the Proposed Transaction, which will depend on the number of securities issued by Highmark at a discount to $0.893 per share prior to the closing date of the Proposed Transaction, including securities issued in the Concurrent Financing.