Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-5

I think NXT has taken a long term view. Since the capital raise, SOV is looking more and more like a listed subsidiary of NXT

• Craig Scroggie, the CEO of NXT is on the Board of SOV, which from a market point of view, basically a controlling Board seat, given NXT is the largest shareholder at 20%.
• SOV just appointed a new CFO who is currently the Chief Accountant at NXT.
• SOV is doing 2 strategic projects along side NXT.

From NXT point of view, NXT has a controlling stake in a company that operates in a market segment that NXT doesnt have exposure to and NXT believes that the growth for data sovereigncy is a fast growing sector, which I think it is. If it is the case and SOV grows in the future, NXT will reap the rewards and make a great return on investment.

A controlling stake also prevents other predators from taking over SOV. NXT can hold max 20% of SOV before being required to take it over. So I think NXT is testing the water here in this data sovereigncy segment without having to buy the entire company. If it works out, NXT might buy it out in the future.