CLS Holdings Regulatory News (CLI)

PRESS RELEASE

Release date: 21 January 2019

Embargoed until: Immediate release

CLS Holdings plc

("CLS", the "Group", the "Company")

Disposal of its interest in First Camp and update of year end net asset value

CLS is pleased to announce that it has exchanged contracts to sell the Group's 58.02% interest in First Camp Sverige Holding AB ("First Camp") to Nordic Camping & Resort Bidco AB ("Nordic Camping"), indirectly majority owned by a fund advised by Norvestor Equity AS, for £28.7 million, to be satisfied by £21.0 million in cash and a £7.7 million vendor loan (the "Transaction").

The Transaction is in line with CLS's strategy to focus on its core business of office properties in the UK, Germany and France and the proceeds will be re-invested in higher yielding commercial property opportunities. The Transaction is subject to receiving clearance from the Swedish Competition Authority, which is expected before the date of completion on 1 February 2019.

The disposal of First Camp, together with the Cood Transaction detailed below, is expected to result in a reduction in CLS's net assets of £9.9 million, equating to a marginal fall in EPRA NAV of circa 2 pence per share, the majority of which will be accounted for at 31 December 2018. Nevertheless, the Group expects to deliver EPRA NAV at 31 December 2018 at the higher end of market expectations. The Group's 2018 full year results will be announced on 7 March 2019.

Fredrik Widlund, Chief Executive Officer of CLS, commented:

"I am delighted that we have been able to turn around First Camp into a profitable business prior to sale. First Camp is an owner and operator of vacation sites in Sweden, and its disposal is in line with the Group's strategy of focusing on our core business of long-term ownership of office properties in the UK, Germany and France."

Further Disclosure and Smaller Related Party Transactions

The vendor loans will be made by the existing shareholders of First Camp in proportion to their existing holdings, at an interest rate of 4% payable quarterly, plus an additional 2% which will be rolled up into the loan (the "Vendor Loan Transaction").

In a separate transaction, First Camp has sold its shareholding in Cood Investments AB ("Cood") for a nominal amount to the existing shareholders of First Camp in proportion to their existing holdings. Cood had net assets of £0.6 million at 31 December 2018 (the "Cood Transaction").

The Vendor Loan Transaction and the Cood Transaction are both related party transactions pursuant to LR11.1.10R because the two other shareholders of First Camp are related parties of CLS, namely i) the Sten and Karin Mortstedt Family and Charity Trust (which has a 51.39% interest in CLS and a 29.10% interest in First Camp) and ii) CSL Fastighets AB, a company associated with Christer Sandberg who has been a non-executive director of certain CLS subsidiaries until September 2018 (which has a 12.88% interest in First Camp).

Liberum Capital, the Company's sponsor, has provided written confirmation to the Company that the terms of the Vendor Loan Transaction and the Cood Transaction are fair and reasonable so far as the shareholders of the Company are concerned.

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For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

John Whiteley, Chief Financial Officer

+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 2476