OREANDA-NEWS. April 19, 2018. Cyrus Capital Partners, L.P. (“CCP”) announces that FBC Holdings S.? r.l. (“FBC”), an investment fund managed by CCP, has acquired an additional 462,036 common shares (“Common Shares”) of Sphere 3D Corporation (“Sphere 3D”). On April 16, 2018, 105,420 Common Shares were issued to FBC in lieu of an interest payment of $108,076.01 due on the 8% senior secured convertible debenture in the principal amount $24,500,000 issued by Sphere 3D to FBC (the “Debenture”). In addition, 131,156 Common Shares were issued to FBC in lieu of a payment in the amount of $231,139.13 (US$183,750) due as consideration for FBC’s entering into an amendment on the Debenture and a further 225,460 Common Shares were issued to FBC in lieu of a second payment in the amount of $231,139.13 (US$183,750) due as consideration for entering into such amendment. The 462,036 Common Shares acquired by FBC on April 16, 2018 represent 4.65% of the 9,946,336 issued and outstanding Common Shares of Sphere 3D (the 9,946,336 is comprised of the 9,484,300 issued and outstanding shares as at April 6, 2018 as disclosed in Sphere 3D’s prospectus supplement filed on April 13, 2018, plus the 462,036 Common Shares issued to FBC on April 16, 2018).

Immediately before April 16, 2018, CCP, through the FBC had indirect control over 754,940 Common Shares. CCP also had indirect control over 40,000 Warrants held by FBC and the Debenture that is convertible into 326,667 Common Shares. If FBC were to have converted the Debenture and the Warrants, FBC would have held and CCP would have indirectly controlled, on a partially diluted basis, an aggregate of 1,121,607 Common Shares, or approximately 11.39% of the issued and outstanding Common Shares. This is calculated on the basis that there would have been 9,850,967 Common Shares of Sphere 3D issued and outstanding (comprised of the then issued 9,484,300 Common Shares, plus the 326,667 Common Shares issuable on the conversion of the Debenture and the 40,000 Common Shares issuable on the conversion of the Warrants).

After the April 16 transaction, CCP, through FBC has indirect control over 1,216,976 Common Shares. CCP also has indirect control over 40,000 Warrants held by FBC and the Debenture that is convertible into 326,667 Common Shares. If FBC were to have converted the Debenture and the Warrants, FBC and the Funds would have held and CCP would have indirectly controlled, on a partially diluted basis, an aggregate of 1,583,643 Common Shares, or approximately 15.36% of the issued and outstanding Common Shares. This is calculated on the basis that there were 10,313,003 Common Shares of Sphere 3D issued and outstanding on April 16, 2018 (comprised of the then issued 9,484,300 Common Shares, plus the 326,667 Common Shares issuable on the conversion of the Debenture, the 40,000 Common Shares issuable on the conversion of the Warrants and the 462,036 Common Shares issued to FBC on April 16, 2018).

On April 17, 2018, Sphere 3D completed an offering of 3,300,000 Common Shares (the “Share Issuance”). Following the Share Issuance, CCP, through FBC has indirect control over 1,216,976 Common Shares. CCP also has indirect control over 40,000 Warrants held by FBC and the Debenture that is convertible into 326,667 Common Shares. If FBC converts the Debenture and the Warrants, FBC and the Funds would hold and CCP would have indirect control over, on a partially diluted basis, an aggregate of 1,583,643 Common Shares, or approximately 11.63% of the issued and outstanding Common Shares. This is calculated on the basis that there are currently 13,613,003 Common Shares of Sphere 3D issued and outstanding (comprised of the issued 12,784,300 Common Shares issued and outstanding following the Share Issuance as disclosed in the prospectus supplement filed by Sphere 3D on April 13, 2018, plus the 326,667 Common Shares issuable on the conversion of the Debenture, the 40,000 Common Shares issuable on the conversion of the Warrants and the 462,036 Common Shares issued to FBC on April 16, 2018).

FBC is a joint actor in connection with the disclosure required by this press release.