CIP.L Regulatory News (CIP)

11 October 2018

CIP MERCHANT CAPITAL LIMITED

("CIP Merchant Capital" or the "Company")

Heads of Terms for the fourth investment

CIP Merchant Capital is pleased to announce that it has entered into non-binding conditional heads of terms (the "Heads of Terms") with 7Star S.r.l. ("7Star"), a private Italian company founded in December 2016 that seeks to disrupt the veterinary hospital sector in Italy.

Under the Heads of Terms, CIP Merchant Capital will, subject to, inter alia, documentation, invest up to €2.6 million in 7Star to acquire an interest of up to 49%. In addition, it is proposed that the Company will also provide an interest free shareholder loan of up to €3.5 million to 7Star. Under the Heads of terms, the total investment of €6.1 million in 7Star may be syndicated by the Company and executed in two separate instalments.

7Star commenced operations at the end of October 2017 and currently operates a veterinary hospital, under the brand Happy Friends, in Lombardy, North Italy. The proposed investment by CIP Merchant Capital will be used to finance the expansion of 7Star's operations through the opening of further veterinary hospitals and clinics in northern Italy. The founders of 7Star, Chicco Reggiani and Christian La Monaca, were previously behind CareDent Italia, which undertook a roll out of dental clinics throughout Italy and building a market leading market, before being acquired in 2016 and who are seeking to achieve the same through 7Star in the Italian veterinary sector.

For the year ended 31 December 2017, having been operating for only two months, 7Star achieved revenues of €0.1 million and had total assets of €1.5 million. In the nine months to 30 September 2018, revenues have grown to approximately €0.6 million.

Further announcements will be made as appropriate and subject to completion, the proposed investment in 7Star will constitute the Company's fourth investment.

For further information, please contact:

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