Drive Shack Inc. (the “Company”) (OTCQX: DSHK) today announced that it intends to raise up to $13,500,000 in a rights offering with an anticipated record date of July 27, 2023, subject to the expiration of applicable regulatory notice periods. In the rights offering, each holder of the Company’s common stock as of the close of business on the record date will be issued, at no charge, one non-transferable subscription right for each whole share of common stock, par value $0.01, of the Company owned by that stockholder on the record date.

Each subscription right will entitle the holder thereof to purchase 0.73063794 of a share of common stock at $0.20 per whole share (subject to rounding up to avoid the issuance of fractional shares). No fractional shares of common stock will be issued in the rights offering.

The Company intends to use the proceeds of the rights offering for general corporate purposes, including the construction of Puttery locations and other capital expenditures at existing venues, and to cover fees and expenses relating to the rights offering.

The information herein is not complete and is subject to change. Certain information has not yet been determined and will be announced in a subsequent press release by the Company. The Company reserves the right to cancel or terminate the planned rights offering at any time.

Disclaimer: This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities to be issued in the proposed rights offering or any related transactions, nor shall there be any offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The proposed rights offering will be made pursuant to an exemption from registration under the Securities Act of 1933.

About Drive Shack Inc.: Drive Shack Inc. is a leading owner and operator of golf-related leisure and entertainment businesses focused on bringing people together through competitive socializing. Today, our portfolio consists of American Golf, Drive Shack and Puttery.

Forward-Looking Statements: Certain statements regarding the Company in this release may constitute forward-looking statements. You can identify these forward-looking statements by the use of forward-looking words such as “proposed”, “intends”, “outlook,” “believes,” “expects,” “by”, “approaches”, “nearly”, “potential”, “continues”, “may”, “will”, “should”, “could”, “seeks”, “approximately”, “predicts”, “intends”, “plans”, “estimates”, “anticipates”, “target”, “goal”, “projects”, “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release, including statements regarding the commencement date, mailing date and record date for the rights offering are based upon our current plans, estimates and expectations in light of information (including industry data) currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These statements are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. We can give no assurance that its expectations regarding any forward-looking statements will be attained.

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