Despite management’s poor track record of capital allocation and the current cyclical low in Cobalt prices, Cobalt 27 is in sound financial condition with positive working capital in excess of $50 million (inclusive of the value of their physical Cobalt inventory). As such, Anson is perplexed as to why the Company has entered into an agreement with a related party to liquidate both its physical inventory and its crown jewel royalty stream at a time when Cobalt prices are near five-year lows. This is in stark contrast to the Company’s stated strategy of being a pure-play investment vehicle with a long-term secular focus on Cobalt and battery metal demand.