Science Blockchain Releases Q2 2024 SCI Token NAV

Santa Monica, CA — July 31, 2024 — Science Blockchain Pte Ltd. (“Science Blockchain”), the premier startup studio investing in and building blockchain technology companies, today announces that the NAV of each SCI token as of June 30, 2024 is $.71, based on the NAV of the underlying portfolio Science Blockchain Holdings, LP. Note: the NAV does not include portfolio company tokens that have been previously distributed to token holders.*

The NAV is a $0.09 decrease from the $.80 NAV reported for the period ending March 31, 2024. The decrease in NAV primarily is due to a decrease in spot pricing of BTC since March 31, 2024 and fees and expenses.

The Science Blockchain portfolio includes the following:

• Cash
• Bitcoin (BTC)
• Protego Trust Company (equity)
• Wave Digital Assets (previously Wave Financial Group) (equity)
• Dapper Labs (equity) via RCapital SPV VI
• Unbound (future token)

You can find the breakdown of the Science Blockchain portfolio below:

*Total portfolio company tokens previously distributed to token holders as of June 30, 2024:

Portfolio Company Updates

Science Blockchain is pleased to provide an update on the progress of several key portfolio companies within the underlying portfolio Science Blockchain Holdings, LP. These updates highlight the strategic advancements and milestones achieved, reflecting the dynamic growth and innovative potential that such investments continue to realize.

Protego Holdings Corporation:

Protego is, in many ways, the most complicated investment in the Science Blockchain portfolio. Protego received conditional approval from the OCC to convert its Washington State chartered trust company to a national bank. The conditions imposed by the OCC were extensive, and the Protego team spent two years building the systems, policies, processes, architectures, and everything else necessary to meet the conditions and launch a national bank capable of providing custody, trading, lending, and issuance services for digital assets. One of the additional conditions was that Protego needed to obtain, prior to final approval by the OCC, both the regulatory and operating capital necessary to operate the business. To that end, prior to the expiration of the conditional approval, Protego entered into definitive investment agreements for $200 million in financing. However, the financier failed to meet its obligation and deliver the capital. The financier claimed this was due to a short-term liquidity squeeze and further claimed that they expected the financing to be available shortly. The liquidity never materialized, and Protego was forced to lay off its staff and suspend operations, pending the arrival of the capital.

There have been innumerable delays, though the financier insists even now that it will meet its obligation within thirty days. The executive team is nearly unanimous in their desire to return and launch Protego upon receipt of the funds, which might enable the business to restart rapidly upon receipt of the necessary investment.

The investor’s failure to deliver the financing and the current state of the business require that Science Blockchain carry the investment at $0. This is in stark contrast to the implied valuation of Science Blockchain’s equity ownership which would materially impact the NAV. We’ve illustrated this below with the pro-forma version of the NAV chart.

Should the financier find liquidity, or Protego find an alternative path to financing, Science Blockchain believes Protego has the chance to become a breakout success. Unless and until that happens, Science Blockchain will carry the investment at $0 and continue to do our best to support the company.

This pro-forma chart is for illustrative purposes only and does not represent actual investment performance. The allocations shown are based on hypothetical scenarios and are subject to change based on market conditions, portfolio company performance, and other factors. Investors should not rely on this chart as a guarantee of returns or an exact representation of the fund’s future portfolio composition. Past performance is not indicative of future results, and all investments carry the risk of loss.

Wave Digital Assets:

Wave Digital Assets (known as “Wave”), is a SEC-registered investment advisory firm that provides a unique combination of venture capital, fund, and private wealth management to the digital asset ecosystem. Founded in Los Angeles in 2018 by a team of highly experienced crypto natives and financial services professionals, Wave brings together smart capital strategies, deep institutional expertise, and cutting-edge ideas to help investors unlock the potential of digital assets. Wave has managed over $1B AUM and is registered with the US Securities & Exchange Commission as an investment adviser.

Science Blockchain is bullish on Wave’s ability to capitalize on its position as one of the only registered investment advisors with a focus on digital assets. This quarter, Wave continued with its recent successes with the announcement of a Polygon Labs network-focused yield vehicle. The vehicle is designed to support protocols and teams on the Polygon zkEVM blockchain, facilitating liquidity and TVL.

“We’re thrilled to support the developers and startups building upon Polygon’s sustainable blockchain infrastructure as it continues to break ground in the Web3 community. Today, we are launching a new vehicle that we believe will help expand this robust community,” said Benjamin Tsai, Co-Founder and President of Wave Digital Assets.

Dapper Labs:

This quarter, Dapper Labs launched Fast Break for both NBA and WNBA on all platforms, unveiled the NBA Top Shot mobile marketplace in-app, and powered Disney Pinnacle’s first in-app trading event with

evaluate. It also announced legal resolutions that Flow is a decentralized public network and that digital collectibles like NBA Top Shot are not securities in the same way trading cards are not securities, according to the CEO of Dapper Labs. Read more from the CEO here.

Unbound Protocol:

Science Blockchain has invested in Unbound Protocol Inc. (“Unbound”) in exchange for future tokens. Unbound is the token issuer of the cryptocurrency $TAGZ, which powers the B2B marketing tech platform VTAGZ. VTAGZ is a cutting-edge platform that revolutionizes how brands connect with consumers and optimize their marketing efforts. It tracks users from ad click and offer acceptance through to retail purchase, capturing phone numbers and first-party data along the way. Top-tier CPG brands leverage VTAGZ to enhance consumer engagement, drive sales, and optimize their marketing strategies with precise, actionable data. With $TAGZ integrated, brands will have an exciting new way to boost brand loyalty. $TAGZ will enable brands to engage consumers on a new level with Web3 rewards, events, merchandise, and more, while also providing innovative consumer data insights. Science Blockchain does not have any certainty on whether or when the VTAGZ tokens will be released, so it is currently carrying the investment at $0, but we remain optimistic.

Buybacks and Redemption

Science Blockchain has received a few inquiries about buybacks and redemption. The Science Blockchain vehicle was designed to be evergreen — meaning that there are mechanisms to permit the fund to refresh from successful token investments and continue its investment activity — subject to various redemption/end-of-life provisions. Each of these provisions are summarized below, and the full text is available to token holders for review in the Science Blockchain Offering Memorandum.

The first of these redemption provisions is Optional Redemption. Science Blockchain may redeem any or all of the SCI tokens at any time following the date ten years from the date of issue on thirty days’ notice at a redemption price equal to the NAV per SCI token. Redemptions will be made in ETH or another cryptocurrency.

The second is Regulatory Redemption. Science Blockchain may at any time redeem all or some of the SCI tokens, in Science Blockchain’s discretion, at a redemption price calculated as the lower of (i) 100% of the market price per SCI token (determined to be the average price at 3 p.m. Eastern Standard Time over the three largest exchanges by liquidity), (ii) the then NAV per SCI token, or (iii) the funds available from liquidation of the assets of Science Blockchain Holdings, LP within the following three month period, in each case, upon receipt of information that the status of the SCI token holders may cause regulatory concern for Science Blockchain Holdings, LP and/or Science Blockchain.

The third is Liquidity Buyback. If the market price of an SCI token (determined to be the average price at 3:00 p.m. Eastern Standard Time over the three largest cryptocurrency exchanges by liquidity) drops below 90% of the NAV, per SCI token based on Science Blockchain Holdings, LP’s last quarterly NAV report, Science Blockchain Holdings, LP and/or Science Blockchain may, each in its sole discretion, make purchases of SCI tokens on the open market. Such purchased SCI tokens may be resold by Science Blockchain Holdings, LP and/or the Issuer in accordance with applicable laws. Persons in the United States or U.S. Persons acquiring the resold SCI tokens may be required to hold the SCI tokens for one year from the date of purchase.

Science Blockchain is regularly evaluating each of the foregoing to determine whether any are necessary or desirable.

Token Upgrade

The next token upgrade event is scheduled for Q4 2024. Token upgrades are now completed on a biannual basis. Please ensure you have completed the upgrade process — including registering a wallet that you control — in order to receive SCI2 tokens. For those who are holding tokens in treasury and have registered a wallet address, we will also conduct SCI2 disbursements from treasury to registered wallets during the upgrade. Token distribution events to new SCI2 token holders will follow the upgrade and treasury disbursements — these events will include any undistributed portfolio tokens. Please note: Portfolio company tokens, including those held on Tokenhub as well as future portfolio company token distributions, will ONLY be distributed to those token holders who have completed the token upgrade process and hold SCI2 tokens in a registered wallet.

As a reminder, all original SCI tokens, including those remaining on Tokenhub, are now frozen. Upgraded SCI tokens are available through the Securitize platform and the upgrade process is now open to all Science Blockchain investors at https://science.securitize.io. All SCI token holders who received their tokens via Tokenhub as part of the original issuance of the SCI tokens have received an email at the email address provided during the original SCI issuance process with instructions on how to access their Science Blockchain Investor Dashboard. Token holders can also access their dashboard directly by registering using that same email via https://science.securitize.io/.

The latest token upgrade process was completed in Q2 2024. The Science Blockchain Investor Dashboard is now live at science.securitize.io. The Science Blockchain Investor Dashboard also allows token holders to manage their SCI2 tokens once they have completed the upgrade process and have received SCI2 tokens.

Reminder for token holders to complete the token upgrade process if they have not already done so. In order to receive SCI2 tokens in future upgrades, you MUST register a wallet address. Further, token holders will need to have upgraded SCI tokens (SCI2 tokens) in a registered wallet in order to receive portfolio company tokens that were held on Tokenhub and portfolio company token distributions. Please visit https://science.securitize.io for more information and to complete the upgrade process as soon as possible.

SCI token holders are encouraged to register and visit https://www.science-inc.com/blockchain.html for current information.

The Science Blockchain team appreciates the trust and support of the SCI token holders and is committed to earning that trust each day through executing its investment strategy.

About Science Blockchain

Science has been helping entrepreneurs build successful businesses for more than six years, during which time it has funded or founded more than 85 companies, and has had $1.3B in aggregate portfolio company exits. Science Blockchain, the first incubator in the world to be funded by its own tokenized compliant securities offering (token: SCI), intends to continue this history of successful company building by helping incredible blockchain entrepreneurs create and scale the software giants of the next century. We do this in three primary ways: 1) incubating promising early stage blockchain ventures, 2) engaging on a very limited and selective basis, with companies looking to take advantage of the possibilities presented by tokenized economies, and 3) investing in compliant private offerings of blockchain businesses. The unique token structure of SCI allows us to distribute 70% of the total tokens that Science Blockchain receives through our incubation and investment strategies directly to the SCI token holders. For more details, please visit https://www.science-inc.com/blockchain.html.

Disclaimer: This release contains certain forward-looking statements, relating to Science Blockchain’s business, which can be identified by the use of forward-looking terminology such as “promising”, “plans”, “anticipated”, “will”, “project”, “believe”, “forecast”, “expected”, “estimated”, “targeting”, “aiming”, “set to”, “potential”, “seeking to”, “goal”, “could provide”, “intends”, “is being developed”, “could be”, “on track”, or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. Science Blockchain is providing this information as of the date of this document and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.