DGAP-Adhoc: The Social Chain AG resolves on capital increase from authorized capital; all New Shares were placed at a placement price of EUR 19.50 per New Shareby

DGAP-Ad-hoc:

The Social Chain AG

/ Key word(s): Capital Increase/Corporate Action

The Social Chain AG

resolves on capital increase from authorized capital; all New Shares were placed at a placement price of

EUR 19.50

per New Share

07-Aug-2020

/

19:24 CET

/CEST

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

Publication of an inside information pursuant to Article 17 MAR

NOT FOR DISTRIBUTION, PUBLICATION OR TRANSMISSION, DIRECTLY OR INDIRECTLY, IN ANY STATE OF THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA (COLLECTIVELY, “UNITED STATES“) OR TO ANY U.S. PERSON (AS DEFINED BELOW), CANADA, AUSTRALIA OR JAPAN OR ANY OTHER COUNTRY IN WHICH SUCH PUBLICATION MAY BE UNLAWFUL OR IN WHICH THE OFFERING OF SECURITIES IS SUBJECT TO REGULATORY RESTRICTIONS. THERE ARE OTHER RESTRICTIONS. PLEASE SEE THE IMPORTANT NOTE AT THE END OF THIS PUBLICATION.

The Social Chain AG resolves on capital increase from authorized capital; all New Shares were placed at a placement price of EUR 19.50 per New Share

Berlin, 7 August 2020 – Today, the management board of The Social Chain AG (ISIN: DE000A1YC996 / WKN A1YC99) (“Company“), with the approval of the supervisory board of the Company, resolved to increase the share capital of the Company against cash contributions from currently EUR 10,316,804.00 by EUR 1,031,680.00 to EUR 11,348,484.00 by issuing 1,031,680 new ordinary registered shares with no par value, each such share with a notional value of EUR 1.00 in the Company’s share capital and with full dividend rights as from 1 January 2019 (“New Shares“), making partial use of the authorized capital 2020/I (“Capital Increase“). The statutory subscription rights of the Company’s shareholders were excluded.

The New Shares were placed at a price of EUR 19.50 per New Share with selected institutional investors (“Placement Price“). The Company will receive gross proceeds of EUR 20,117,760.00 from the Capital Increase. The Company will use the net proceeds from the Capital Increase to execute its acquisition strategy and to further drive organic growth.

As of today, the Company will be subject to a six-month lock-up, i.e. an obligation not to, inter alia, issue further shares or financial instruments convertible into shares or to conduct a further capital increase, subject to customary market conditions and exemptions.

Inclusion of the New Shares for trading in the open market (Freiverkehr) of the Düsseldorf Stock Exchange (Börse Düsseldorf) (Segment primary market (Primärmarkt) is expected after the capital increase has been completed.

Important note

This announcement constitutes neither an offer nor a solicitation to purchase or subscribe for securities of the Company.

This announcement is not intended for distribution, directly or indirectly, in or into the United States or within the United States and may not be distributed to U.S. persons (as such term is defined in Regulation S under the Securities Act) or publications with a general circulation in the United States. This announcement does not constitute or form part of any offer to sell or the solicitation of an offer to purchase or subscribe for any securities in the United States. The New Shares are not and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act. The Company does not intend to conduct a public offering of New Shares in the United States.

The New Shares referred to in this announcement will not be offered or sold in Canada, Australia or Japan, or to or for the account of persons resident in Canada, Australia or Japan. No action has been taken to offer, acquire or distribute the New Shares in any jurisdiction where this is not permitted.

This release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the Company’s management and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied. Actual results, results or events could differ materially from those described herein due to factors affecting the Company, including, but not limited to, changes in the general economic environment or competitive situation, capital market risks, foreign exchange rate fluctuations and competition from other companies, and changes in foreign or domestic laws or regulations, including, but not limited to, the tax environment. The Company assumes no obligation to update any forward-looking statements.

Contact:

| Investor Relations

ir@socialchain.com