Thalassa Holdings

Investment in London Medical Laboratory Limited

Thalassa Holdings Limited

2 February 2021

Thalassa Holdings Ltd

(Reuters: THAL.L, Bloomberg: THAL:LN)

("Thalassa", "THAL" or the "Company")

Thalassa makes £2.5m investment in London Medical Laboratory Limited ("LML")

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

The Board of Thalassa is pleased to announce that the Company has entered into an agreement with LML, a leading clinical testing specialist and provider of pathology diagnostics services, to lend LML up to £2,500,000 (the Financing).

The Financing, which will be used by LML to fund the opening of new phlebotomy clinical facilities and to increase the capacity of its existing facilities, has a term of 3 years and attracts PIK return of 5% per annum. 

The Financing is a precursor to LML seeking a possible AIM Admission. Thalassa has committed to convert and subscribe for shares issued in the Admission, equal in value to the committed amount of the Financing plus the rolled up PIK return on any sums drawn down.

Alongside the Financing, LML has issued 3-year warrants to Thalassa carrying the right to subscribe for shares representing 8% of the fully diluted share capital of LML.

Thalassa may transfer or assign its rights and obligations under the Financing agreement to a third party, including another Group company.

Duncan Soukup, chairman of Thalassa, said:

"We are delighted to have the opportunity to partner with LML's founders, Seth Rankin and Flavia Araujo-Rankin, and their team at LML and look forward to assisting and supporting the growth of the business, as well as the Company's AIM Admission preparations. The UK private-pay market for blood is in its infancy compared to the US, but for those interested in the potential, it is worth taking a look at Quest Diagnostics Inc. (NYSE: DGX US), a Fortune 500-USA Company with a Market Cap of ~$17bn with 2020/LTM Revenues, through 30-12-2020, of $8.4bn, or Laboratory Corporation of America Holdings (NYSE: LH US) also a Fortune 500-USA Company with a Market Cap of ~$21bn with 2020/LTM Revenues, through 30-12-2020 of ~$12.4bn. In the year ended 31 December 2020, LML generated revenue of approximately £13.2 million."

Seth Rankin, CEO of LML, said:

"LML is excited to be partnering with Thalassa and the advice and support offered by Duncan and his team will be a huge asset in smoothing our path to an AIM Admission later this Spring. Having the ability to benefit from the Thalassa's experience in the public markets and their contacts, will both accelerate LML's progress through the Admission process, and help with realising the many incredible opportunities for growth that LML has identified in the medical laboratory sector"

END

 Note to Editors:

About Thalassa

www.thalassaholdingsltd.com

Thalassa Holdings Ltd. is a holding company with various interests across a number of industries which currently include, FinTech, Robotics and Leisure & Entertainment and Security & Access Control.

About London Medical Laboratory

www.londonmedicallaboratory.co.uk

London Medical Laboratory is an independent clinical testing specialist and provider of pathology diagnostics services.  The company offers the latest in pathology testing solutions across a number of disciplines including clinical biochemistry, immunology, haematology, sexual health screening and molecular biology from its dedicated, state-of-the-art laboratory in central London.