Drumz Plc - Issue of Equity

30 November 2021

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Drumz plc 

('Drumz' or the 'Company')

Placing to raise £450,000

The Company is pleased to announce that it has raised £450,000 before expenses through the issue of 75,000,000 ordinary shares of 0.1p each (“Ordinary Shares”) at an issue price of 0.6 pence each (the “Issue Price”) (the “Placing Shares”) (the “Placing”). Investors in the Placing will also receive 1 warrant to subscribe for one Ordinary Share for every one Placing Shares, exerciseable at 1.0 pence, for a period of up to 12 months from date of issue.    

Peterhouse Capital acted as broker in relation to the Placing.

The directors of the Company, intend to subscribe for an aggregate of up to 7,000,001 Placing Shares as part of the Placing at the Issue Price of 0.6 pence per share. As set out below:

This intention is not legally binding and any subscription by the directors pursuant to the Placing will be announced through a Regulatory Information Service.

Drumz has undertaken the Placing to provide additional cash resources for working capital purposes and to enable the Board to respond to investment opportunities.

The Issue Price represents a premium of nine per cent compared to the fund raise announced 1 October 2020 and a discount of seven per cent. compared to the closing middle market price of 0.65 pence on 29 November 2021, being the last practicable date prior to the announcement of the Placing. The Placing is not being underwritten and is conditional on admission of the Placing Shares to trading on AIM. The Placing is being conducted pursuant to the existing authorities granted to the Directors of the Company at its annual general meeting on 18 June 2021. The Placing Shares represent approximately 17.8 per cent. of the Company's issued share capital as enlarged by the Placing Shares.

Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ("Admission") and it is expected that such Admission will occur at 8.00 a.m. on 6 December 2021. The Placing Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Placing Shares, respectively and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares. The Placing Shares are not being made available to the public and are not being offered or sold into any jurisdiction where it would be unlawful to do so.

Following Admission, the Company will have 419,822,048 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 419,822,048 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.