SatoshiPay Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on blockchain and payments provides the following updates related to its investee company SatoshiPay Ltd ("SatoshiPay") and Blue Star's operations.

German R&D Tax Credit Certification

SatoshiPay has advised the Company that its Pendulum and Vortex research projects have received certification under the German Forschungszulage research and development tax incentive programme, supporting claims for tax credits totalling more than €900,000.

The claims have been submitted to the German tax authorities. SatoshiPay currently anticipates receipt of proceeds in early 2027, although both the amount ultimately payable and the timing of payment remain subject to the relevant tax assessment and receipt of funds. SatoshiPay has indicated that, based on its current operating plan, receipt of the anticipated proceeds would provide funding for more than 12 months of operations from the date of receipt. Although SatoshiPay and its advisers are confident the claims will be successful, there can be no certainty as to the amount or timing of any proceeds.

Bridge Loan Facility

To provide short-term working capital ahead of the anticipated receipt of the German R&D tax credit proceeds, Blue Star has agreed to provide SatoshiPay with an unsecured convertible loan facility of up to €50,000 (the "Facility"), pursuant to a bridge loan note deed (the "Loan Deed").

The Facility carries a non-compounding coupon of 5 per cent. per 30 days on amounts drawn, payable only upon receipt of the German R&D tax credit proceeds. The Facility is repayable from those proceeds and, in any event, by 28 February 2027 (the "Maturity Date").

If any principal remains unpaid after the Maturity Date, Blue Star may elect once to exchange the whole outstanding funded principal for one new SAFE. No shares are issued on that exchange and no existing SAFE converts as a result. The new SAFE may convert into shares only at a later applicable event under its terms. Accrued coupon remains separate and is excluded from the exchange.

The Loan Deed is a new facility and does not amend SatoshiPay's existing SAFE arrangements.

Vortex Commercial Update

SatoshiPay has advised that Vortex has signed an international payments provider as a new client. SatoshiPay has indicated that the prospective payment flows could amount to tens of millions of US dollars per month. Activation is dependent on satisfying outstanding banking partner compliance and onboarding requirements and neither commencement of processing nor any payment volumes are guaranteed.

Vortex is also progressing the activation of a Brazilian real account with access to Brazil's Pix payment system, which is intended to support liquidity within Pendulum's decentralised foreign exchange infrastructure and larger BRL-to-stablecoin transactions. SatoshiPay is undertaking further technical work aimed at reducing FX conversion costs and improving liquidity and pricing for business customers in Brazil.

Product and Technology Development

Since June 2026, Vortex has implemented 30 product updates encompassing more than 160 software changes. These include the launch of a business dashboard allowing customers to register, complete verification and request and execute stablecoin transactions; improved partner integration and customer account functionality; partner-specific pricing; a self-service developer test environment; and updated developer tools and documentation.

Further enhancements include market-referenced exchange rates for Brazilian real and Colombian peso transactions, restored stablecoin on-ramping on Ethereum, improved automated handling of delayed cross-chain transfers and additional customer verification checks in Brazil.

Within the Pendulum ecosystem, testing of the PEN token migration to the Base network has commenced, following the earlier migration of the FX DEX to Base. SatoshiPay is also testing potential AI-assisted financial administration services for small and medium-sized businesses in Germany. These remain at an exploratory stage, with any further development subject to an assessment of demand and commercial viability.

Potential Investment

In addition to the developments outlined above, the Company confirms that it is in advanced discussions regarding a potential minority investment in a business developing a decentralised browser. The browser is an open-source, crypto-native platform incorporating a built-in digital wallet and native support for decentralised protocols.

The proposed investment is expected to provide opportunities for collaboration with the Company's existing portfolio investments, including the potential integration of Vortex, the fiat-to-crypto infrastructure platform incubated by SatoshiPay, into the browser ecosystem. The Board confirms that any investment will be funded through the existing cash resources of the Company.

Discussions remain ongoing and there can be no certainty that the proposed investment will proceed. The Company will provide further updates as appropriate.

Outlook

SatoshiPay continues to focus on the commercial development of Vortex and its related payments and foreign exchange infrastructure. The anticipated German R&D tax credit receipts, if received, would provide funding to support these activities, while the Facility is intended to address any interim working capital requirements. The Company will provide further updates as appropriate.

The Directors of the Company take responsibility for this announcement.

About SatoshiPay