Investment Strategy of Sora Capital Corp.

The Company will consider various investment opportunities; however it is focusing on emerging companies in the Software as a Service (“SaaS”) sector of the technology industry. More specifically, companies with consumer facing products and services with revenue models, including subscriptions, transactional service fees and targeted advertising.

Using the expertise of its management in both the venture finance and technology sectors, Sora identifies candidate companies in need of capital investment and operational support to continue developing their Minimum Viable Products (“MVP”) and business plans. Typically, these companies require “seed capital” stage investments to continue the development of the MVP’s, including enhancing the product into polished and competitive offerings, and to begin establishing a user base (customers) and monetization model.

Sora identified two Vancouver-based companies that met its criteria and completed seed level investments in the past year. Sora has invested $250,000 in HelpHub Services Inc. and $1,000,000 in Rosterbot Inc. Sora funded these investments on a ‘tranche’ basis over the past year to meet the needs of the companies cash requirements and to date, both companies have enhanced their product offerings and established significant growth in their user bases.

Sora’s model for creating value is primarily the capital appreciation of each of its portfolio companies. Having secured seed investment from Sora, each company will require additional financing to fund its ongoing growth. Ideally, these companies will graduate beyond seed level investment and secure Series A and B and/or IPO investments as they mature. As part of its strategy, Sora generally maintains a “pro-rata entitlement” or “right of first refusal” on subsequent financings that protects and positions it ideally for future participation.

The secondary objective for Sora is to provide a vehicle for the Canadian retail investors to participate in investment opportunities in the emerging Canadian technology sector. Most investors would have a difficult time gaining access to new companies, either due to lack of awareness or sufficient capital to interest those companies. By participating through Sora, the investor gains access to these start-up companies, a management team with the experience and expertise to make an informed decision and the pooling of capital sufficient to meet the target companies’ needs.