TRANSACTIONS BY KARL KENNY INVOLVING COMMON SHARES OF KRAKEN ROBOTICS INC.

MOUNT PEARL, NL, Aug. 9, 2022 /CNW/ - Karl Kenny, President and CEO of Kraken Robotics Inc. ("Kraken") announces that he has completed a series of acquisitions and dispositions of common shares in the capital of Kraken.

Between July 25, 2018 and December 9, 2021, Mr. Kenny (i) acquired 16,666 common shares through an exercise of common share purchase warrants at $0.30 per common share for cash consideration of $4,999.80; (ii) acquired 300,000 common shares through an exercise of stock options at $0.18 per common share for cash consideration of $54,000; and (iii) disposed of 2,500,000 common shares through the facilities of the TSX Venture Exchange at an average price of $0.62 per common share for cash consideration of $1,542,108.87 (collectively, the "Transactions"). The Transactions resulted in a net disposition of 2,183,334 common shares.

Immediately prior to the Transactions, Mr. Kenny owned 27,743,383 common shares, representing 23.14% of the Issuer's issued and outstanding common shares at the time (being 119,906,923 common shares issued and outstanding as at August 24, 2018) on a non-diluted basis. As a result of the Transactions, Mr. Kenny now beneficially owns or controls an aggregate of 24,060,049 common shares, representing approximately 11.96% of the Issuer's issued and outstanding common shares on a non-diluted basis (based on 201,192,985 common shares issued and outstanding). The resulting change in Mr. Kenny's share ownership position was greater than 2% from Mr. Kenny's last early warning report that was filed on July 25, 2018 (the "Previous EWR") in which Mr. Kenny reported the beneficial ownership of 22.7% of the then-issued and outstanding common shares on a non-diluted basis. The decrease in Mr. Kenny's share ownership since the Previous EWR was due to a combination of the Transactions and a series of common share treasury issuances by the Issuer that diluted Mr. Kenny's previously reported position.

An officer of Kraken has a private option to acquire up to 3,000,000 of Mr. Kenny's common shares at any time until August 14, 2022 (the "Private Option"). With the exception of the possible exercise of the Private Option prior to the end of its term, Mr. Kenny does not presently intend to make further divestitures or investments in Kraken, but may from time to time in the future increase or decrease his ownership, control or direction over securities of Kraken through market transactions, private agreements, or otherwise.

Mr. Kenny has filed on the SEDAR website (www.sedar.com) an early warning report in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues.

(signed) "Karl Kenny"

SOURCE Karl Kenny

Karl Kenny, President & CEO, Kraken Robotics Inc., [email protected]