NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, SINGAPORE OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT HAS NOT BEEN APPROVED BY THE LONDON STOCK EXCHANGE, NOR IS IT INTENDED THAT IT WILL BE SO APPROVED. 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining

22 March 2023

Zinnwald Lithium plc ("Zinnwald" or the "Company")

Strategic Investment and Equity Fundraising to Raise a Minimum of £14 million

Zinnwald Lithium plc, the German focused lithium development company, is pleased to announce it has secured cornerstone commitments for an equity fundraising to raise a minimum of £14 million at a price of 10.41 pence per share (the "Placing Price"), representing a premium of 10% to the 20-day  Volume Weighted Average Price ("VWAP") of the Company's shares, as of the close of market on 20 March 2023 (the "Fundraising").

The Fundraising is led by AMG Advanced Metallurgical Group N.V ("AMG"), which is subscribing for a 25% shareholding in the Company (the "AMG Subscription").   Existing substantial shareholders, Henry Maxey and Mark Tindall are also subscribing for new ordinary shares at the Placing Price to maintain their pre-existing shareholdings (together with the AMG Subscription, the "Subscriptions"). Together with participation in the Placing (as defined below) from two Directors of the Company, the Company will raise a minimum of £14 million at the Placing Price, pursuant to the Fundraising. 

The Company is today launching a placing led by Oberon Capital ("Oberon") and Tamesis Partners LLP ("Tamesis") (the "Placing") and a Retail Offer (as defined below). The Placing will be conducted via an accelerated bookbuild (the "Bookbuild"), further details of which can be found in the appendix to this announcement.

The net proceeds from the Fundraising will be used to advance the Company's wholly owned Zinnwald Lithium Project in Germany (the "Project") towards a value optimised bankable feasibility study ("BFS") for lithium hydroxide ("LiOH") and towards the continued exploration of the potential to expand the size and scope of the Project.

The new ordinary shares to be issued by the Company in relation to the Fundraising and the Placing (the "New Ordinary Shares") will be issued utilising the Company's existing share authorities to issue new ordinary shares on a non-pre-emptive basis, as approved by the Company's shareholders at the June 2022 Annual General Meeting. The Placing has been arranged by Oberon and Tamesis, co-brokers to the Placing.

The Directors recognise the importance of giving retail shareholders and investors an opportunity to participate in the Company's ongoing funding, should they be unable to participate in the Placing. Consequently, the Company intends to make an offer on the PrimaryBid platform of New Ordinary Shares at the Placing Price (the "Retail Offer"). To the extent it is able, the Company will prioritise existing Zinnwald shareholders in the Retail Offer. Further details of the Retail Offer will be announced shortly. 

As detailed in the Annual Accounts to 31 December 2022, published today, it is the Board's intention to issue 3,406,780 RSUs and 2,450,000 Options under the Company's Long-Term Incentives Plans relating to performance in 2022.

Rationale for the Fundraising and Use of Fundraising Proceeds

Following publication of the Preliminary Economic Assessment ("PEA") of the Project in September 2022, the Company is working towards completion of its BFS, which is targeted for completion by the end of 2023. The main uses of the net proceeds of the Fundraising will therefore be as follows:

·    Infill drilling: completion of programme at the Project to refine the operational mine plan and provide an updated Mineral Resource Estimate.

·    Testwork and value optimisation: further refinement of the mineral processing, pyrometallurgical and hydrometallurgical aspects of the lithium hydroxide flow sheet including exploring options to further minimise CO₂ emissions.

·    Conclude agreements to utilise existing local infrastructure, land and property purchases.

·    Permitting: to advance the operational and environmental permits required to enable the Project to move into construction.

·    Engineering Work: to start the process of detailed engineering that will follow on from the BFS.

·    Project Finance: to continue discussions with future non-equity project finance partners and move towards an investment decision.

·    Exploration drilling: completion of the programme at the Falkenhain licence to test historic drilling and determine the potential for a resource.

·    Working capital and general corporate purposes.

Overview of Zinnwald  

Zinnwald is an AIM quoted, lithium development company focused on becoming an important supplier to Europe's fast-growing battery sector. The Company owns the integrated Zinnwald Lithium Project in Germany, a development-stage project with attractive economics and approved mining licence. A PEA published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe's chemical and automotive industries and has the potential to be one of Europe's more advanced battery grade lithium projects.

The Fundraising

Zinnwald has entered into a subscription agreement with AMG Lithium B.V., a wholly owned subsidiary of AMG, to subscribe for up to 123,348,866 New Ordinary Shares at the Placing Price, equating to 25% of the enlarged issued share capital of the Company, following completion of the Fundraising.  Further details relating to AMG's subscription are set out below.

Zinnwald has entered into a subscription agreement with Ruffer LLP as discretionary fund manager for Henry Maxey to subscribe for up to 29,235,507 New Ordinary Shares at the Placing Price, which will maintain his pre-existing 14.6% shareholding in the Company following completion of the Fundraising.  Further details relating to Mr Maxey's subscription are set out below.

Zinnwald has entered into a subscription agreement with Mark Tindall to subscribe for 8,000,000 New Ordinary Shares at the Placing Price, which will approximately maintain his pre-existing 4.0% shareholding in the Company following completion of the Fundraising. 

In the event that the Placing and/or the Retail Offer are not fully subscribed, the aforementioned subscription agreements entered into with AMG and Henry Maxey provide that the number of New Ordinary Shares to be issued by the Company shall be scaled back so as to, in the case of AMG, not exceed 25% of the enlarged issued share capital of the Company following completion of the Fundraising and, in the case of Henry Maxey, ensure that their existing shareholdings in the Ordinary Shares are maintained and not diluted as a result of the Fundraising.

Zinnwald has entered into a placing agreement (the "Placing Agreement") with Oberon and Tamesis. As part of the Bookbuild, two Directors of the Company, Anton du Plessis and Cherif Rifaat, will participate in the Placing and subscribe for 720,000 New Ordinary Shares and 675,000 New Ordinary Shares respectively at the Placing Price representing £74,952 and £70,268 respectively.

The New Ordinary Shares will, when issued, be credited as fully paid and will rank pari passu with the existing Ordinary Shares including the right to receive all future dividends and distributions declared, made or paid by reference to a record date falling after their issue.

The Company will apply for the New Ordinary Shares, to be issued in relation to the Fundraising, to be admitted to trading on AIM ("Admission") and Admission is expected to occur on or around 29 March 2023.

The AMG Subscription, the Significant Shareholder Subscriptions, and the Placing are conditional upon, inter alia, Admission becoming effective and the Placing Agreement between the Company, Oberon and Tamesis becoming unconditional and not being terminated.

The Bookbuild will be launched immediately following this announcement by Oberon and Tamesis. Pricing and allocations are expected to be announced as soon as practicable following the closing of the book.  The timing of closing of the book will be at the absolute discretion of Oberon and Tamesis. The Placing is subject to the terms and conditions set out in the appendix to this announcement (which forms part of this announcement, such announcement and its appendix together being the "Announcement").

AMG Relationship Agreement

AMG will hold up to 123,348,866 Ordinary Shares following completion of the Fundraising, representing approximately 25 per cent. Of the enlarged issued share capital of the Company. AMG has undertaken to the Company and Allenby Capital, the Company's Nominated Adviser, that, for so long as it is interested in Ordinary Shares carrying 15 per cent. or more of the Company's voting share capital, it will not act to unduly influence the Company or its Board and will ensure that transactions entered into with the Company are on an arms' length basis and independently considered by the Company. The Agreement provides AMG with the right to maintain its 25 per cent shareholding in future fundraises.

The Relationship Agreement provides that for so long as AMG is interested in Ordinary Shares carrying a minimum of 15 per cent. of the Company's voting share capital, AMG shall be entitled to appoint one director to the board of the Company. AMG has proposed Dr Stefan Scherer, the CEO of AMG Lithium B.V, to be its nominated director, subject to the appropriate due diligence to be carried out by Allenby Capital. This process is currently underway and a further announcement will be in due course.

Related party transactions

Henry Maxey is a substantial shareholder in the Company with a shareholding of approximately 14.6% of the Company's current issued share capital. Mr Maxey has entered into a subscription agreement with the Company (the "Maxey Subscription Agreement") to subscribe for up to 29,235,507 New Ordinary Shares at the Placing Price, subject to any scale back as a result of the Bookbuild and Retail Offer so as to maintain his 14.6% shareholding following completion of the fundraising. As part of this agreement, the Company has committed to provide Mr Maxey with a pre-emptive right to maintain his shareholding in any future fund raises, in recognition of his material historic and on-going financial support of the Company. The entry into the Maxey Subscription Agreement between the Company and Mr Maxey constitutes a related party transaction pursuant to rule 13 of the AIM Rules for Companies.

The Board (save for Anton du Plessis and Osman Cherif Rifaat, who are intending to participate in the Placing), being the Directors independent of the transactions referred to above, consider, having consulted with the Company's Nominated Adviser, Allenby Capital for the purposes of the AIM Rules, that the terms of the transactions between the Company and Henry Maxey are fair and reasonable insofar as the Company's shareholders are concerned. 

ENDS

For further information contact:

Notes

About Zinnwald Lithium

Zinnwald Lithium plc (EPIC: ZNWD.L) is an AIM quoted, integrated lithium development company focussed on becoming an important supplier to Europe's fast-growing battery sector. The Company owns the Zinnwald Lithium Project in Germany, an advanced development project with attractive economics and approved mining licence. Its PEA, published in September 2022, highlighted the positive economics of the Project with a Pre-tax NPV8 of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3 years. The Project is located in the heart of Europe's chemical and automotive industries and has the potential to be one of Europe's more advanced battery grade lithium projects.

About AMG

AMG's mission is to provide critical materials and related process technologies to advance a less carbon-intensive world. To this end, AMG is focused on the production and development of energy storage materials such as lithium, vanadium, and tantalum. In addition, AMG's products include highly engineered systems to reduce CO₂ in aerospace engines, as well as critical materials addressing CO₂reduction in a variety of other end use markets.

AMG Clean Energy Materials segment combines AMG's recycling and mining operations, producing materials for infrastructure and energy storage solutions while reducing the CO₂ footprint of both suppliers and customers. AMG Clean Energy Materials segment spans the vanadium, lithium, and tantalum value chains. AMG Critical Materials Technologies segment combines AMG's leading vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. AMG Critical Minerals segment consists of AMG's mineral processing operations in antimony, graphite, and silicon metal.

With approximately 3,400 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, Sri Lanka, and Mozambique, and has sales and customer service offices in Japan (www.amg-nv.com).

Notice to Distributors

Solely for the purposes of the product governance requirement contained in Chapter 3 of the FCA Product Intervention and Product Governance Sourcebook (together, the "UK Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the UK Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, as defined under the FCA Handbook Conduct of Business Sourcebook, and (ii) eligible for distribution through all permitted distribution channels (the "Target Market Assessment").

Notwithstanding the Target Market Assessment, distributors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; the Placing offers no guaranteed income and no capital protection; and an investment in the Placing is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Oberon Capital and Tamesis will only procure investors who meet the criteria of professional clients and eligible counterparties. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of the FCA Handbook Conduct of Business Sourcebook COBS 9A and 10A respectively; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Placing Shares.

Each distributor is responsible for undertaking its own target market assessment in respect of the Placing Shares and determining appropriate distribution channels.

APPENDIX

TERMS AND CONDITIONS OF THE BOOKBUILD

IMPORTANT INFORMATION ON THE BOOKBUILD FOR INVITED PLACEES ONLY.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT IN THIS APPENDIX ARE DIRECTED ONLY AT: (A) IF IN A MEMBER STATE OF THE EUROPEAN ECONOMIC AREA ("EEA"), QUALIFIED INVESTORS AS DEFINED IN ARTICLE 2(e) OF REGULATION (EU) 2017/1129 ("EU PROSPECTUS REGULATION"); (B) IF IN THE UNITED KINGDOM, QUALIFIED INVESTORS AS DEFINED IN ARTICLE 2(e) OF REGULATION (EU) 2017/1129 WHICH FORMS PART OF DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK PROSPECTUS REGULATION") WHO ALSO (I) FALL WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005, AS AMENDED (THE "ORDER") (INVESTMENT PROFESSIONALS); (II) FALL WITHIN ARTICLE 49(2)(a) TO (d) (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC.) OF THE ORDER; OR (C) ARE PERSONS TO WHOM IT IS OTHERWISE LAWFUL TO COMMUNICATE IT TO (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS").

THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. PERSONS DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY THEMSELVES THAT IT IS LAWFUL TO DO SO. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS APPENDIX AND THE TERMS AND CONDITIONS SET OUT HEREIN RELATE IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS APPENDIX DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.

THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA. THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, RESOLD, TRANSFERRED OR DELIVERED, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. THERE WILL BE NO PUBLIC OFFER OF THE SECURITIES MENTIONED HEREIN IN THE UNITED STATES.

THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN AND WILL NOT BE APPROVED OR DISAPPROVED BY THE US SECURITIES AND EXCHANGE COMMISSION (THE "SEC"), ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY IN THE UNITED STATES, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THE PLACING OR THE ACCURACY OR ADEQUACY OF THIS ANNOUNCEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE IN THE UNITED STATES.

THE CONTENT OF THIS ANNOUNCEMENT HAS NOT BEEN APPROVED BY AN AUTHORISED PERSON WITHIN THE MEANING OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (AS AMENDED). RELIANCE ON THIS ANNOUNCEMENT FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE AN INDIVIDUAL TO A SIGNIFICANT RISK OF LOSING ALL OF THE PROPERTY OR OTHER ASSETS INVESTED.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF AN ACQUISITION OF PLACING SHARES.

Unless otherwise defined in these terms and conditions, capitalised terms used in these terms and conditions shall have the meaning given to them in this announcement.

If a person indicates to Oberon Investments Limited (trading as Oberon Capital) ("Oberon") or Tamesis Partners LLP ("Tamesis") that it wishes to participate in the Placing by making an oral or written offer to acquire Placing Shares (each such person, a "Placee") it will be deemed to have read and understood these terms and conditions and the announcement of which they form a part in their entirety and to be making such offer on the terms and conditions, and to be providing the representations, warranties, indemnities, agreements and acknowledgements, contained in these terms and conditions as deemed to be made by Placees.

In particular each such Placee represents, warrants and acknowledges that:

it is a Relevant Person and undertakes that it will acquire, hold, manage or dispose of any Placing Shares that are allocated to it for the purposes of its business;

it is and, at the time the Placing Shares are acquired, will be outside the United States and acquiring the Placing Shares in an "offshore transaction" in accordance with Rule 903 or Rule 904 of Regulation S under the Securities Act ("Regulation S") and it is acquiring beneficial interests in the Placing Shares for its own account; if acquiring the Placing Shares for the account of one or more other persons, it has full power and authority to make the representations, warranties, agreements, undertakings, and acknowledgements herein on behalf of each such person; and

if it is a financial intermediary, as that term is used in Article 5(1) of the Prospectus Regulation, any Placing Shares acquired by it in the Placing will not be acquired on a non-discretionary basis on behalf of, nor will they be acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of securities to the public other than an offer or resale to Qualified Investors in the United Kingdom or a member state of the EEA, or in circumstances in which the prior consent of Oberon or Tamesis has been given to each such proposed offer or resale

This announcement, including this Appendix, does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities may not be offered or sold in the United States absent (i) registration under the Securities Act or (ii) an available exemption from, or in a transaction not subject to, registration under the Securities Act. The securities mentioned herein have not been, and will not be, registered under the Securities Act. The Placing Shares are being offered and sold outside the United States in "offshore transactions" in accordance with Regulation S. There will be no public offering of the securities in the United States.

The distribution of these terms and conditions and the offer and/or placing of Placing Shares in certain other jurisdictions may be restricted by law. No action has been taken by Oberon , Tamesis or the Company that would permit an offer of the Placing Shares or possession or distribution of these terms and conditions or any other offering or publicity material relating to the Placing Shares in any jurisdiction where action for that purpose is required, save as mentioned above. Persons into whose possession these terms and conditions come are required by Oberon, Tamesis and the Company to inform themselves about and to observe any such restrictions.

No prospectus or other offering document has been or will be submitted to be approved by the FCA in relation to the Placing or the Placing Shares and each Placee's commitment will be made solely on the basis of the information set out in this announcement. Each Placee, by participating in the Placing, agrees that it has neither received nor relied on any other information, representation, warranty or statement made by or on behalf of Oberon, Tamesis or the Company and none of Oberon, Tamesis the Company, nor any person acting on such person's behalf nor any of their respective affiliates has or shall have liability for any Placee's decision to accept this invitation to participate in the Placing based on any other information, representation, warranty or statement. Each Placee acknowledges and agrees that it has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.

No undertaking, representation, warranty or any other assurance, express or implied, is made or given by or on behalf of Oberon, Tamesis or any of their affiliates, their respective directors, officers, employees, agents, advisers, or any other person, as to the accuracy, completeness, correctness or fairness of the information or opinions contained in this announcement or for any other statement made or purported to be made by any of them, or on behalf of them, in connection with the Company or the Placing and no such person shall have any responsibility or liability for any such information or opinions or for any errors or omissions. Accordingly, save to the extent permitted by law, no liability whatsoever is accepted by Oberon, Tamesis or any of their directors, officers, employees or affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of this announcement or such information or opinions contained herein.

All offers of the Placing Shares will be made pursuant to an exemption from the requirement to produce a prospectus.

These terms and conditions do not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any Placing Shares or any other securities or an inducement to enter into investment activity, nor shall these terms and conditions (or any part of them), nor the fact of their distribution, form the basis of, or be relied on in connection with, any investment activity. No statement in these terms and conditions is intended to be nor may be construed as a profit forecast and no statement made herein should be interpreted to mean that the Company's profits or earnings per share for any future period will necessarily match or exceed historical published profits or earnings per share of the Company.

Proposed Placing of New Ordinary Shares

Placees are referred to these terms and conditions and this announcement containing details of, inter alia, the Placing. These terms and conditions and this announcement have been prepared and issued by the Company, and is the sole responsibility of the Company. Application will be made to the London Stock Exchange for admission of the Placing Shares ("Admission") to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence on AIM at 8.00 a.m. on or around 29 March 2023.

The New Ordinary Shares issued under the Placing, when issued and fully paid, will be identical to, and rank pari passu with, the existing ordinary shares, including the right to receive all dividends and other distributions declared, made or paid on the existing ordinary shares after Admission.

Bookbuilding process

Commencing today, Oberon and Tamesis will be conducting the Bookbuild to determine demand for participation in the Placing. Oberon and Tamesis will seek to procure Placees as agent for the Company as part of this Bookbuild. These terms and conditions give details of the terms and conditions of, and the mechanics of participation in, the Placing.

Principal terms of the Bookbuild

(a)    Participation in the Placing will only be available to persons who are Relevant Persons and who may lawfully be and are invited to participate by Oberon or Tamesis. Oberon, Tamesis and their affiliates are entitled to offer to subscribe for Placing Shares as principal in the Bookbuild.

(b)   Oberon and Tamesis are arranging the Placing as agents of the Company.

(c)    By participating in the Placing, Placees will be deemed to have read and understood this announcement and these terms and conditions in their entirety and to be participating and making an offer for any Placing Shares on these terms and conditions, and to be providing the representations, warranties, indemnities, acknowledgements and undertakings, contained in these terms and conditions.

(d)   Any offer to subscribe for Placing Shares should state the aggregate number of Placing Shares which the Placee wishes to acquire or the total monetary amount which it wishes to commit to acquire Placing Shares at the Placing Price. The Placing Price will be payable by the Placees in respect of the Placing Shares allocated to them.

(e)   The Bookbuild is expected to close on 22 March 2023 but may close earlier or later, at the discretion of Oberon, Tamesis and the Company. The timing of the closing of the books and allocations will be agreed between Oberon, Tamesis and the Company following completion of the Bookbuild (the "Allocation Policy"). Oberon and Tamesis may, in agreement with the Company, accept offers to subscribe for Placing Shares that are received after the Bookbuild has closed.

(f)    An offer to subscribe for Placing Shares in the Bookbuild will be made on the basis of these terms and conditions and will be legally binding on the Placee by which, or on behalf of which, it is made and will not be capable of variation or revocation after the close of the Bookbuild.

(g)    Subject to paragraph (e) above and (h) below, Oberon and Tamesis reserve the right not to accept an offer to subscribe for Placing Shares, either in whole or in part, on the basis of the Allocation Policy and may scale down any offer to subscribe for Placing Shares for this purpose.

(h)   If successful, each Placee's allocation will be confirmed to it by Oberon or Tamesis following the close of the Bookbuild. Oral or written confirmation (at Oberon's discretion) from Oberon or Tamesis to such Placee confirming its allocation will constitute a legally binding commitment upon such Placee, in favour of Oberon, Tamesis and the Company to acquire the number of Placing Shares allocated to it on the terms and conditions set out herein. Each Placee will have an immediate, separate, irrevocable and binding obligation, owed to the Company, to pay to Oberon or Tamesis (or as Oberon of Tamesis may direct) as agent for the Company in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares allocated to such Placee.

(i)     The Company will make a further announcement following the close of the Bookbuild detailing the number of Placing Shares to be issued (the "Placing Results Announcement"). It is expected that such Placing Results Announcement will be made as soon as practicable after the close of the Bookbuild.

(j)     Irrespective of the time at which a Placee's allocation(s) pursuant to the Placing is/are confirmed, settlement for all Placing Shares to be acquired pursuant to the Placing will be required to be made at the time specified, on the basis explained below under the paragraph entitled "Registration and Settlement".

(k)    No commissions are payable to Placees in respect of the Placing.

(l)     By participating in the Bookbuild, each Placee agrees that its rights and obligations in respect of the Placing will terminate only in the circumstances described below and will not be capable of rescission or termination by the Placee. All obligations under the Placing will be subject to the fulfilment of the conditions referred to below under the paragraphs entitled "Conditions of the Placing" and "Termination of the Placing Agreement".

Conditions of the Placing

The obligations of Oberon and Tamesis under the Placing Agreement in respect of the Placing Shares are conditional on, amongst other things:

(a)            Admission having occurred not later than 8.00 a.m. on 29 March 2023 or such later date as the Company, Oberon and Tamesis may agree, but in any event not later than 8.00 a.m. on 4 April 2023;

(b)            the Company having complied with its obligations under the Placing Agreement (to the extent that such obligations fall to be performed prior to Admission); and

(c)            none of the warranties in the Placing Agreement being untrue or inaccurate or misleading at any time before Admission and no fact or circumstance having arisen which would render any of the warranties untrue or inaccurate or misleading if it was repeated as at Admission.

If (i) any of the conditions contained in the Placing Agreement in relation to the Placing Shares are not fulfilled or waived by Oberon by the respective time or date where specified, (ii) any of such conditions becomes incapable of being fulfilled or (iii) the Placing Agreement is terminated in the circumstances specified below, the Placing will not proceed and the Placee's rights and obligations hereunder in relation to the Placing Shares shall cease and terminate at such time and each Placee agrees that no claim can be made by the Placee in respect thereof.

Oberon and Tamesis, at their discretion and upon such terms as they think fit, may waive compliance by the Company with the whole or any part of any of the Company's obligations in relation to the conditions in the Placing Agreement. Any such extension or waiver will not affect Placees' commitments as set out in this announcement.

Neither Oberon, Tamesis nor the Company nor any other person shall have any liability to any Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect of any decision they may make as to whether or not to waive or to extend the time and/or the date for the satisfaction of any condition to the Placing nor for any decision they may make as to the satisfaction of any condition or in respect of the Placing generally, and by participating in the Placing each Placee agrees that any such decision is within the absolute discretion of Oberon and Tamesis.

By participating in the Placing, each Placee agrees that Oberon's and Tamesis' rights and obligations in respect of the Placing terminate, inter alia, in the circumstances described below under "Termination of the Placing Agreement".

Termination of the Placing Agreement

Oberon and Tamesis are entitled at any time before Admission, to terminate the Placing Agreement in relation to its obligations in respect of the Placing Shares by giving notice to the Company if, amongst other things:

(a)            the Company is in material breach of any provision of the Placing Agreement; or

(b)            Oberon or Tamesis becomes aware of any circumstance which results in a breach of any of the warranties given by the Company in the Placing Agreement or which results in or might result in a breach of any of the warranties when deemed given; or

(c)            any change or development (including, without limitation, any change or development in economic, financial, political, diplomatic or other market conditions or any change in any government regulation (including a material deterioration in, or a material escalation in response to, the COVID-19 pandemic)) has occurred or is likely to occur which, in the good faith opinion of Oberon or Tamesis, is (or will be if it occurs) likely materially and prejudicially to affect the financial position or the business or prospects of the Company's group or otherwise makes it impractical or inadvisable for Oberon or Tamesis to perform its obligations under the Placing Agreement. For these purposes "market conditions" includes conditions affecting securities in the business sector in which the Company operates and conditions affecting securities generally.

By participating in the Placing, each Placee agrees with Oberon and Tamesis that the exercise by Oberon and Tamesis of any right of termination or other discretion under the Placing Agreement shall be within the absolute discretion of Oberon and Tamesis and that Oberon and Tamesis need not make any reference to the Placees in this regards and that, to the fullest extent permitted by law, neither the Company nor Oberon, nor Tamesis, nor any branch, affiliate or associated undertaking of either the Company or Oberon or Tamesis nor any of their respective directors, officers and employees shall have any liability whatsoever to the Placees in connection with any such exercise or failure to so exercise.

Placing Procedure

Placees shall acquire the Placing Shares to be issued pursuant to the Placing and any allocation of the Placing Shares to be issued pursuant to the Placing will be notified to them on or around 22 March 2023 (or such other time and/or date as the Company, Oberon and Tamesis may agree).

Registration and Settlement

Settlement of transactions in the Placing Shares following Admission of the Placing Shares will take place within the CREST system, subject to certain exceptions. Oberon, Tamesis and the Company reserve the right to require settlement for, and delivery of, the Placing Shares to Placees by such other means that they deem necessary if delivery or settlement is not possible within the CREST system within the timetable set out in this announcement or would not be consistent with the regulatory requirements in the Placee's jurisdiction. Each Placee will be deemed to agree that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the CREST or certificated settlement instructions which they have in place with Oberon or Tamesis.

Settlement for the Placing will be on a delivery versus payment basis and settlement is expected to take place on or around 29 March 2023. Interest is chargeable daily on payments to the extent that value is received after the due date from Placees at the rate of 2 percentage points above prevailing LIBOR. Each Placee is deemed to agree that if it does not comply with these obligations, Oberon and Tamesis may sell any or all of the Placing Shares allocated to it on its behalf and retain from the proceeds, for its own account and benefit, an amount equal to the aggregate amount owed by the Placee plus any interest due. By communicating a bid for Placing Shares, each Placee confers on Oberon or Tamesis all such authorities and powers necessary to carry out any such sale and agrees to ratify and confirm all actions which Oberon or Tamesis may lawfully take in pursuance of such sale. The relevant Placee will, however, remain liable for any shortfall below the aggregate amount owed by it and may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties) which may arise upon any transaction in the Placing Shares on such Placee's behalf.

Acceptance

By participating in the Placing, a Placee (and any person acting on such Placee's behalf) irrevocably acknowledges, confirms, undertakes, represents, warrants and agrees (as the case may be) with Oberon, Tamesis and the Company, the following:

1.      in consideration of its allocation of a placing participation, to subscribe at the Placing Price for any Placing Shares comprised in its allocation for which it is required to subscribe pursuant to these terms and conditions;

2.      it has read and understood this announcement (including these terms and conditions) in its entirety and that it has neither received nor relied on any information given or any investigations, representations, warranties or statements made at any time by any person in connection with Admission, the Placing, the Company, the Placing Shares, or otherwise, other than the information contained in this announcement (including these terms and conditions) that in accepting the offer of its placing participation it will be relying solely on the information contained in this announcement (including these terms and conditions) and undertakes not to redistribute or duplicate such documents;

3.      its oral or written commitment will be made solely on the basis of the information set out in this announcement and the information publicly announced to a Regulatory Information Service by or on behalf of the Company on the date of this announcement, such information being all that such Placee deems necessary or appropriate and sufficient to make an investment decision in respect of the Placing Shares and that it has neither received nor relied on any other information given, or representations or warranties or statements made, by Oberon, Tamesis or the Company nor any of their respective affiliates and neither Oberon, nor Tamesis nor the Company will be liable for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement;

4.      the content of this announcement and these terms and conditions are exclusively the responsibility of the Company and it agrees that neither Oberon nor Tamesis nor any of their affiliates nor any person acting on behalf of any of them will be responsible for or shall have liability for any information, representation or statements contained therein or any information previously published by or on behalf of the Company, and neither Oberon not Tamesis nor the Company, nor any of their respective affiliates or any person acting on behalf of any such person will be responsible or liable for a Placee's decision to accept its placing participation;

5.      (i) it has not relied on, and will not rely on, any information relating to the Company contained or which may be contained in any research report or investor presentation prepared or which may be prepared by Oberon, Tamesis or any of their affiliates; (ii) none of Oberon, Tamesis, their affiliates or any person acting on behalf of any of such persons has or shall have any responsibility or liability for public information relating to the Company; (iii) none of Oberon, Tamesis, their affiliates or any person acting on behalf of any of such persons has or shall have any responsibility or liability for any additional information that has otherwise been made available to it, whether at the date of publication of such information, the date of these terms and conditions or otherwise; and that (iv) none of Oberon, Tamesis, their affiliates or any person acting on behalf of any of such persons makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of any such information referred to in (i) to (iii) above, whether at the date of publication of such information, the date of this announcement or otherwise;

6.      it has made its own assessment of the Company and has relied on its own investigation of the business, financial or other position of the Company in deciding to participate in the Placing, and has satisfied itself concerning the relevant tax, legal, currency and other economic considerations relevant to its decision to participate in the Placing;

7.      it is acting as principal only in respect of the Placing or, if it is acting for any other person (i) it is duly authorised to do so and has full power to make the acknowledgments, representations and agreements herein on behalf of each such person, (ii) it is and will remain liable to the Company, Oberon and Tamesis for the performance of all its obligations as a Placee in respect of the Placing (regardless of the fact that it is acting for another person), (iii) if it is in the United Kingdom, it is a person (a) who has professional experience in matters relating to investments and who falls within the definition of "investment professionals" in Article 19(5) of the Order or who falls within Article 49(2) of the Order, and (b) is a qualified investor" within the meaning of Article 2(e) of the UK Prospectus Regulation, (iv) if it is a financial intermediary, as that term is used in Article 5(1) of the UK Prospectus Regulation, the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in the United Kingdom other than Qualified Investors or in circumstances in which the prior consent of Oberon or Tamesis has been given to the offer or resale; or where Placing Shares have been acquired by it on behalf of persons in the United Kingdom other than Qualified Investors, the offer of those Placing Shares to it is not treated under the UK Prospectus Regulation as having been made to such persons; (v) if it is a person in a member state of the EEA (each, a "Relevant Member State") who acquires any Placing Shares pursuant to the Placing, it is a Qualified Investor within the meaning of Article 2(e) of the EU Prospectus Regulation; (vi) if it is a person in the EEA who is a financial intermediary, as that term is used in Article 5(1) of the EU Prospectus Regulation, the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in any Relevant Member State other than Qualified Investors or in circumstances in which the prior consent of Oberon or Tamesis has been given to the offer or resale; or where Placing Shares have been acquired by it on behalf of persons in any Relevant Member State other than Qualified Investors, the offer of those Placing Shares to it is not treated under the EU Prospectus Regulation as having been made to such persons;

8.      if it has received any confidential price sensitive information about the Company in advance of the Placing, it has not (i) dealt in the securities of the Company; (ii) encouraged or required another person to deal in the securities of the Company; or (iii) disclosed such information to any person, prior to the information being made generally available;

9.      it has complied with its obligations in connection with money laundering and terrorist financing under the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Terrorism Act 2006, the Criminal Justice (Money Laundering and Terrorism Financing) Act 2010 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and any related or similar rules, regulations or guidelines, issued, administered or enforced by any government agency having jurisdiction in respect thereof (the "Regulations") and, if it is making payment on behalf of a third party, it has obtained and recorded satisfactory evidence to verify the identity of the third party as may be required by the Regulations;

10.   it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which section 21(1) of FSMA does not require approval of the communication by an authorised person;

11.   it is not acting in concert (within the meaning given in the City Code on Takeovers and Mergers) with any other Placee or any other person in relation to the Company;

12.   it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving the United Kingdom;

13.   it and any person acting on its behalf is entitled to acquire the Placing Shares under the laws of all relevant jurisdictions and that it has all necessary capacity and has obtained all necessary consents and authorities to enable it to commit to this participation in the Placing and to perform its obligations in relation thereto (including, without limitation, in the case of any person on whose behalf it is acting, all necessary consents and authorities to agree to the terms set out or referred to in these terms and conditions);

14.   unless otherwise agreed by the Company (after agreement with Oberon and Tamesis), it is not, and at the time the Placing Shares are subscribed for and purchased will not be, subscribing for and on behalf of a resident of the United States, Canada, Australia, Japan, the Republic of South Africa or any other territory in which the Placing Shares may not be offered, sold, transferred, delivered or distributed (each an "Excluded Territory") and further acknowledges that the Placing Shares have not been and will not be registered under the securities legislation of any Excluded Territory and, subject to certain exceptions, may not be offered, sold, transferred, delivered or distributed, directly or indirectly, in or into those jurisdictions;

15.   it does not expect Oberon or Tamesis to have any duties or responsibilities towards it for providing protections afforded to clients under the rules of the FCA Handbook (the "Rules") or advising it with regard to the Placing Shares and that it is not, and will not be, a client of Oberon as defined by the Rules. Likewise, any payment by it will not be treated as client money governed by the Rules;

16.   any exercise by Oberon or Tamesis of any right to terminate the Placing Agreement or of other rights or discretions under the Placing Agreement or the Placing shall be within Oberon's or Tamesis' absolute discretion and Oberon and Tamesis shall not have any liability to it whatsoever in relation to any decision to exercise or not to exercise any such right or the timing thereof;

17.   neither it, nor the person specified by it for registration as a holder of Placing Shares is, or is acting as nominee(s) or agent(s) for, and that the Placing Shares will not be allotted to, a person/person(s) whose business either is or includes issuing depository receipts or the provision of clearance services and therefore that the issue to the Placee, or the person specified by the Placee for registration as holder, of the Placing Shares will not give rise to a liability under any of sections 67, 70, 93 and 96 of the Finance Act 1986 (depositary receipts and clearance services) and that the Placing Shares are not being acquired in connection with arrangements to issue depository receipts or to issue or transfer Placing Shares into a clearance system;

18.   the person who it specifies for registration as holder of the Placing Shares will be (i) itself or (ii) its nominee, as the case may be, and acknowledges that Oberon, Tamesis and the Company will not be responsible for any liability to pay stamp duty or stamp duty reserve tax (together with interest and penalties) resulting from a failure to observe this requirement; and each Placee and any person acting on behalf of such Placee agrees to participate in the Placing on the basis that the Placing Shares will be allotted to a CREST stock account of Oberon or Tamesis who will hold them as nominee on behalf of the Placee until settlement in accordance with its standing settlement instructions with it;

19.   where it is acquiring Placing Shares for one or more managed accounts, it is authorised in writing by each managed account to acquire Placing Shares for that managed account;

20.   if it is a pension fund or investment company, its acquisition of any Placing Shares is in full compliance with applicable laws and regulations;

21.   it has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or otherwise in circumstances which have not resulted and which will not result in an offer to the public in the United Kingdom within the meaning of section 85(1) of the FSMA;

22.   it has not offered or sold and will not offer or sell any Placing Shares to persons in any member state of the EEA prior to Admission except to persons whose ordinary activities involve them acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of their business or otherwise in circumstances which have not resulted and will not result in an offer to the public in any member state of the EEA within the meaning of the Prospectus Directive;

23.   participation in the Placing is on the basis that, for the purposes of the Placing, it is not and will not be a client of Oberon or Tamesis and that Oberon or Tamesis does not have any duties or responsibilities to it for providing the protections afforded to its clients nor for providing advice in relation to the Placing nor in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement or the contents of these terms and conditions;

24.   to provide Oberon. Tamesis or the Company (as relevant) with such relevant documents as they may reasonably request to comply with requests or requirements that either they or the Company may receive from relevant regulators in relation to the Placing, subject to its legal, regulatory and compliance requirements and restrictions;

25.   any agreements entered into by it pursuant to these terms and conditions shall be governed by and construed in accordance with the laws of England and Wales and it submits (on its behalf and on behalf of any Placee on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract, except that enforcement proceedings in respect of the obligation to make payment for the Placing Shares (together with any interest chargeable thereon) may be taken by Oberon or Tamesis in any jurisdiction in which the relevant Placee is incorporated or in which any of its securities have a quotation on a recognised stock exchange;

26.   to fully and effectively indemnify and hold harmless the Company, Oberon, Tamesis and each of their respective affiliates, subsidiaries, branches, associates and holding companies, and in each case their respective directors, employees, officers and agents from and against any and all losses, claims, damages and liabilities (i) arising from any breach by such Placee of any of the provisions of these terms and conditions and (ii) incurred by Oberon, Tamesis and/or the Company arising from the performance of the Placee's obligations as set out in these terms and conditions;

27.   to indemnify on an after-tax basis and hold the Company, Oberon, Tamesis and any of their affiliates and any person acting on their behalf harmless from any and all losses, claims, damages, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgments, agreements and undertakings in these terms and conditions and further agrees that the provisions of these terms and conditions shall survive after completion of the Issue;

28.   in making any decision to subscribe for the Placing Shares, (i) it has knowledge and experience in financial, business and international investment matters as is required to evaluate the merits and risks of acquiring the Placing Shares; (ii) it is experienced in investing in securities of this nature and is aware that it may be required to bear, and is able to bear, the economic risk of, and is able to sustain a complete loss in connection with, the Placing; (iii) it has relied on its own examination, due diligence and analysis of the Company and its affiliates taken as a whole, including the markets in which the Group operates, and the terms of the Placing, including the merits and risks involved; (iv) it has had sufficient time to consider and conduct its own investigation with respect to the offer and purchase of the Placing Shares, including the legal, regulatory, tax, business, currency and other economic and financial considerations relevant to such investment and (v) will not look to Oberon, Tamesis or any of their respective affiliates or any person acting on their behalf for all or part of any such loss or losses it or they may suffer;

29.   its commitment to acquire Placing Shares will continue notwithstanding any amendment that may in future be made to the terms and conditions of the Placing, and that Placees will have no right to be consulted or require that their consent be obtained with respect to the Company's or Oberon's or Tamesis' conduct of the Placing; and

30.   Oberon, Tamesis and the Company and their respective affiliates and others will rely upon the truth and accuracy of the foregoing representations, warranties, acknowledgments and undertakings which are irrevocable. Please also note that the agreement to allot and issue Placing Shares to Placees (or the persons for whom Placees are contracting as agent) free of stamp duty and stamp duty reserve tax in the UK relates only to their allotment and issue to Placees, or such persons as they nominate as their agents, direct from the Company for the Placing Shares in question. Such agreement assumes that such Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to transfer such Placing Shares into a clearance service. If there were any such arrangements, or the settlement related to other dealing in such Placing Shares, stamp duty or stamp duty reserve tax may be payable, for which none of the Company nor Oberon nor Tamesis would be responsible and Placees shall indemnify the Company and Oberon on an after-tax basis for any stamp duty or stamp duty reserve tax paid by them in respect of any such arrangements or dealings. Furthermore, each Placee agrees to indemnify on an after-tax basis and hold each of Oberon, Tamesis and/or the Company and their respective affiliates harmless from any and all interest, fines or penalties in relation to stamp duty, stamp duty reserve tax and all other similar duties or taxes to the extent that such interest, fines or penalties arise from the unreasonable default or delay of that Placee or its agent. If this is the case, it would be sensible for Placees to take their own advice and they should notify Oberon or Tamesis accordingly. In addition, Placees should note that they will be liable for any capital duty, stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable outside the UK by them or any other person on the acquisition by them of any Placing Shares or the agreement by them to acquire any Placing Shares.

The Company, Oberon and Tamesis will rely upon the truth and accuracy of each of the foregoing representations, warranties and undertakings.

Miscellaneous

The Company reserves the right to treat as invalid any application or purported application for Placing Shares that appears to the Company or its agents to have been executed, effected or dispatched from the United States or an Excluded Territory or in a manner that may involve a breach of the laws or regulations of any jurisdiction or if the Company or its agents believe that the same may violate applicable legal or regulatory requirements or if it provides an address for delivery of the share certificates of Placing Shares in an Excluded Territory or the United States, or any other jurisdiction outside the United Kingdom in which it would be unlawful to deliver such share certificates. When a Placee or person acting on behalf of the Placee is dealing with Oberon or Tamesis, any money held in an account with Oberon or Tamesis on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the rules and regulations of the FCA made under the FSMA. The Placee acknowledges that the money will not be subject to the protections conferred by the client money rules; as a consequence, this money will not be segregated from Oberon's or Tamesis' money in accordance with the client money rules and will be used by Oberon in the course of their own business; and the Placee will rank only as a general creditor of Oberon.

Each Placee agrees to be bound by the Company's articles of association (as amended from time to time) once the Placing Shares which such Placee has agreed to acquire have been acquired by such Placee.

These provisions may be waived, varied or modified as regards specific Placees or on a general basis by Oberon or Tamesis.

Times

Unless the context otherwise requires, all references to time are to London time. All times and dates in these terms and conditions may be subject to amendment. Oberon or Tamesis will notify Placees and any persons acting on behalf of the Placees of any changes.