CLS Holdings Regulatory News (CLI)

Release date: 23 March 2020 

Embargoed until: Immediate release 

CLS Holdings plc

("CLS" or the "Company")

Coronavirus update, Publication of 2019 Annual Report and Accounts andNotice of Annual General Meeting

Coronavirus update

In this unprecedented situation, the safety and wellbeing of CLS staff, tenants and customers is our priority. We remain committed to working with our tenants during this difficult time, and our contingency planning is in place and working well to ensure business continuity.

In light of the ongoing situation, we believe the CLS' business remains resilient:

- As at the start of 2020, across our 97 properties, we have c.780 tenants who are well diversified in terms of size and sectors.

- Less than 6.5% of our tenants by contracted rent are in the retail, leisure, travel, private education or serviced office sectors.

- Our top 15 tenants represent 32% of our contracted rent and 48% of our contracted rent is from governments or major corporations.

- In 2019, we made a profit of £1.9m from our one hotel operation at Spring Mews. The hotel management team is actively managing the situation by exploring alternate revenue sources as well as implementing cost control strategies to mitigate the impact on the Group.

- Our balance sheet is strong and well capitalised with a Loan to Value of 31.4% (31 December 2018: 36.7%), cash of £259.4 million (31 December 2018: £100.3 million) and £50 million of additional facilities.

- Our strategy remains clear and we are well positioned going forward.

Publication of 2019 Annual Report and Accounts

Further to the publication of our audited financial results on 5 March 2020, CLS Holdings plc announces that the following documents have today been posted or otherwise been made available to shareholders of the Company:

- Annual Report and Accounts for the year ended 31 December 2019;

- Notice of Annual General Meeting to be held on 23 April 2020; and

- Form of Proxy for the 2020 Annual General Meeting.

A copy of the above documents has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

The 2019 Annual Report and 2020 Notice of Annual General Meeting are available on the CLS website at www.clsholdings.com.

The announcement released on 5 March 2020 regarding CLS's annual results for the year ended 31 December 2019 included the information required by DTR 6.3.5.

Annual General Meeting information

As of this date, the Government has announced that they are advising individuals not to undertake any non-essential travel, practice self-distancing in order to reduce social interaction between people and self-isolation for certain vulnerable groups to reduce the transmission of coronavirus. While it is not clear how long these measures will be in place, it seems likely that they will affect attendance at the AGM. Shareholders are encouraged to refer to the Government's official website, https://www.gov.uk/government/topical-events/coronavirus-covid-19-uk-government-response for the latest guidance.

While it is a legal requirement for the Company to hold the AGM in order to pass essential shareholder resolutions, circumstances may require the normal proceedings to be shortened or amended. Any updates to the AGM will be communicate with shareholders before the meeting through the Group's website, www.clsholdings.com

In light of the current Government advice, the Company therefore advises shareholders not to attend the AGM in person and strongly encourages them to exercise their right to vote and to submit their proxies well in advance of the deadline as further disruption may occur at a later date. Should shareholders wish to raise any questions please write to The Company Secretary at our registered office or enquiries@clsholdings.com.

-ends-

For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

David Fuller, Company Secretary

+44 (0)20 7582 7766

Liberum Capital Limited

Richard Crawley

Jamie Richards

+44 (0)20 3100 2222

Whitman Howard

Hugh Rich

+44 (0)20 7659 1261

Elm Square Advisers Limited

Jonathan Gray

+44 (0)20 7823 3695

Smithfield Consultants (Financial PR)Alex Simmons

Rob Yates

+44 (0)20 3047 2546