ADAM.L Regulatory News (ADAM)

11 May 2020

ADAMAS FINANCE ASIA LIMITED

("ADAM" or the "Company")

Successful raise of US$1.72 million through a second Subscription to Corporate Bond

Adamas Finance Asia Limited (AIM: ADAM), the London quoted company focused on providing shareholders with attractive uncorrelated, risk adjusted returns from a diversified portfolio of pan-Asian investments, is pleased to announce that it has successfully raised gross proceeds of approximately US$1.72 million through a new subscription to ADAM's US Dollar-denominated corporate bond from High Net Worth Individuals and Family Offices in the Middle East (the "Corporate Bond"). This represents the second close of its corporate bond issuance programme of up to a combined total US$10 million, through which the Company has raised a combined total of approximately US$3.6 million to date.

This Corporate Bond, which matures in October 2022 has a cash coupon with an interest rate of 12.5% per annum payable semi-annually and is secured with a fixed and floating charge on the corporate assets of the Company. The Company reserves the right to change the terms of any future corporate bond issuance. The initial announcement of the Corporate Bond was made on 21 October 2019.

The gross proceeds raised will be reinvested in the Company's pipeline of increasingly attractive higher income yielding investments in emerging and established small and medium sized enterprises across Asia, which the Board expects to deliver further value to shareholders.

John Croft, Chairman of Adamas Finance Asia Limited, commented:

"We are pleased to announce this fresh capital injection. The impact of the COVID-19 pandemic continues to bring global uncertainty, but the Company is seeing an increasingly attractive and growing pipeline of investment opportunities across Asia.

The Board considers it appropriate to raise capital utilising the Company's existing corporate bond issuance programme, whilst adding new investors into ADAM and continuing to diversify the Company's sources of funding. We welcome the support of these new investors and the increase in our cash reserves to make attractive further investments in due course, which are expected to deliver further value to our shareholders."

For further information, please visit the Company's website at http://adamasfinance.com and follow the Company on Twitter (@AdamasFinance).

FOR FURTHER INFORMATION, PLEASE CONTACT:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

About Adamas Finance Asia

Adamas Finance Asia Limited (ADAM) is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property.