Edmonton, Alberta--(Newsfile Corp. - June 30, 2021) - DAK Capital Inc. ("DAK") announces that effective on January 29, 2018, DAK acquired ownership of 2,006,282 common shares ("Shares") in the capital of Blackline Safety Corp. (the "Company") on exercise of the warrants ("Warrants") held by DAK for an aggregate subscription proceeds of $3,151,694.80 (the "Exercise of Warrants Transaction"). 1,434,782 Warrants were exercised at a price of $1.40 per share for subscription proceeds of $2,008,694.80, and 571,500 Warrants were exercised at a price of $2.00 per share for subscription proceeds of $1,143,000.00. The ownership of the Warrants was previously disclosed in an early warning report filed by DAK on April 12, 2017 and available on sedar.com, and the exercise of the Warrants was previously disclosed on SEDI (System for Electronic Disclosure by Insiders) by filings made on February 1, 2018.

The Shares issued on exercise of the Warrants, combined with the 9,923,782 existing Shares owned by DAK at that time resulted in DAK owning a total of 11,930,064 Shares on January 29, 2018, representing 34.3% of the Shares of the Company based on 34,731,120 Shares issued and outstanding on September 27, 2017 on a non-diluted basis.

Subsequent to the Exercise of Warrants Transaction, DAK acquired an additional 354,800 Shares in the open market through the facilities of the TSX Venture Exchange at an average price of approximately $6.00 per Share for an aggregate purchase price of $2,128,744.00 (the "Open Market Acquisitions"). The Open Market Acquisitions occurred between December 18, 2018 and August 6, 2020, as reported by DAK on SEDI (System for Electronic Disclosure by Insiders).

In summary, the Shares acquired pursuant to the Open Market Acquisitions, combined with the 11,930,064 existing Shares owned by DAK upon the Exercise of Warrants Transaction, results in DAK presently owning a total of 12,284,864 Shares, representing 22.5% of the Shares of the Company based on 54,522,458 Shares issued and outstanding on June 22, 2021 on a non-diluted basis.

On a cumulative basis, with the Shares owned by DAK previously representing 34.3% of the Shares of the Company upon the completion of the Exercise of Warrants Transaction, and with the Shares owned by DAK now representing 22.5% of the Shares of the Company upon the completion of the Open Market Acquisitions, DAK's holdings in the Company have decreased by more than 2% of the Company's outstanding Shares.

As the Shares acquired by DAK pursuant to the Exercise of Warrants Transaction were from treasury of the Company, the requirements in Part 2 of National Instrument 62-104 - Take-Over Bids and Issuer Bids ("NI 62-104") do not apply to the Shares acquired pursuant to the Transaction. In addition, the Shares acquired by DAK pursuant to the Open Market Acquisitions were acquired in reliance on the "normal course purchase exemption" under section 4.1 of NI 62-104.

DAK acquired the Shares pursuant to the Exercise of Warrants Transaction and the Open Market Acquisitions for private investment purposes and may increase or decrease its beneficial ownership or control over securities of the Company as circumstances or market conditions warrant.

This news release is issued pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. A copy of the related early warning report is being filed with the applicable securities commissions and can be found at www.sedar.com.

FOR FURTHER INFORMATION, CONTACT:

DAK Capital Inc.
2700 - 10111 104 Avenue
Edmonton, Alberta T5J 0J4
(780) 990-0505

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89172