Hornby Regulatory News (HRN)

21 February 2020

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR IN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN HORNBY PLC OR ANY OTHER ENTITY IN ANY SUCH JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.

Hornby PLC

("Hornby", the "Company")

Placing and Open Offer of 41,666,666 New Ordinary Shares to raise £15.0 million

 and

Amendment and Restatement of Sale and Purchase Agreement relating to shares in LCD Enterprises Limited

and

Notice of General Meeting

Hornby PLC, the international models and collectibles group, announces that it proposes to raise, in aggregate, approximately £15.0 million (before expenses) through the issue of up to 41,666,666 New Ordinary Shares at an issue price of 36.0 pence per New Ordinary Share, pursuant to a Placing and Open Offer.

The Placing is being conducted through an accelerated book building process (the "Accelerated Book Build") which will be launched immediately following the release of this announcement (the "Announcement") and which is expected to close no later than 4.00 pm (GMT) today. Liberum Capital Limited ("Liberum Capital") is acting as sole bookrunner in connection with the Placing and Open Offer.

The Company also announces that, conditional on shareholder approval, it has extended the lock-in period of the sale and purchase agreement, entered into on November 2017 between the Company, Lyndon Charles Davies and Catherine Enrico Davies in respect of the acquisition by the Company of 49 per cent. of the issued ordinary share capital of LCD Enterprises Limited, to 8 December 2023.

Highlights

The Placing and Open Offer

·; Approximately £15.0 million to be raised via a proposed Placing and Open Offer at an issue price of 36.0 pence per New Ordinary Share. Phoenix Asset Management Partners and Artemis Investment Management LLP (in its capacity as investment adviser of certain discretionary funds), who currently own 74.66 per cent. and 14.56 per cent. of the issued ordinary share capital of the Company, respectively, have indicated that they are wholly supportive of the Placing and Open Offer, intend to participate in the Placing and have irrevocably undertaken to vote in favour of the relevant resolutions at a to be convened general meeting

·; Net proceeds of the Placing and Open Offer expected to be utilised as follows:

o To reinvigorate the Group's key brands through accelerated product development and additional capital expenditure

o To invest in digital marketing to more efficiently find customers and establish a platform to build relationships with customers.

o To upgrade central systems building a scalable operating platform for future growth

o To strengthen the Group's Balance Sheet providing flexibility to invest in further growth opportunities

·; Placing comprising:

o Firm Placing element of up to 37,177,974 New Ordinary Shares to raise approximately £13.4 million

o Conditional Placing element of up to a further 4,488,692 New Ordinary Shares to raise up to approximately £1.6 million, subject to clawback to satisfy take-up of the Open Offer by Qualifying Shareholders. Phoenix and Artemis are not Qualifying Shareholders and, accordingly, will not participate in the Open Offer

o Open Offer of up to 4,488,692 New Ordinary Shares to raise up to approximately £1.6 million which is expected to be made on the basis that:

§ Qualifying Shareholders may subscribe for 1 Open Offer Share for every 3.006268641288 Existing Ordinary Shares held

§ Qualifying Shareholders may also make applications in excess of their pro rata initial entitlement under an Excess Application Facility

·; The Issue Price of 36.0 pence per New Ordinary Share is equal to the Closing Price per Existing Ordinary Share on 20 February 2020 (being the latest practicable date prior to publication of this Announcement)

The Amendment and Restatement of the Sale and Purchase Agreement

·; On 8 December 2017 the Company completed the acquisition of 49 per cent. of the issued ordinary share capital of LCD Enterprises, for a consideration of £1.6 million payable in cash pursuant to the LCD SPA

·; LCD Enterprises holds majority interests in the Oxford Diecast Group, which supplies diecast model vehicles and railway products to the collector, gift and hobby markets globally

·; On 20 February 2020, the Company entered into the Amendment and Restatement Agreement, a conditional agreement pursuant to which the LCD SPA will be amended and restated such that the end of the Lock-In Period relating to certain rights of the Company and Lyndon Davies and Catherine Davies, is extended to 8 December 2023, being the sixth anniversary of completion of the LCD SPA

·; The Amendment and Restatement Agreement is conditional on the passing of an ordinary resolution by the Shareholders at a general meeting of the Company which is expected to be held at 10.00 a.m. on 10 March 2020. If the resolution is not approved by Shareholders at the general meeting, the Amendment and Restatement Agreement will not be implemented

Lyndon Davies, Chief Executive

"There is momentum at Hornby. A lot has changed over the last two years and we continue to make good progress. The strengthening of our balance sheet provides a solid foundation for the next steps in our journey. We have a bold vision. We will take advantage of technology within our products and how we engage with our customers. We will fully harness the energy of the broad range brands we own. These are sometimes forgotten, so it is worth reminding all about the ammunition we have at our disposal - Hornby, Scalextric, Airfix, Corgi, Humbrol, Jouef, Lima, Rivarossi, Bassett-Lowke, Electrotren, Triang, MKD, Pocher. These are some of the most powerful brands that exist in the markets in which we operate. They have history, heritage and an exciting future. This fundraise provides us with the means to take steps towards fully realising their great potential."

The Accelerated Book Build

The Placing is being conducted by way of an Accelerated Book Build led by Liberum Capital as sole bookrunner. 

Completion of the Placing and Open Offer will be conditional upon, inter alia, the approval of certain resolutions by Shareholders at a general meeting of the Company, which is expected to be held on 10 March 2020 (the "General Meeting") and Admission occurring.

Accordingly, the Company expects to publish a circular (the "Circular") in connection with the Placing and Open Offer shortly following the successful closure of the Accelerated Book Build, in order to convene the General Meeting to approve certain matters necessary to implement the Placing and Open Offer and the Amendment and Restatement of the SPA (the "Resolutions"). Full details of the Open Offer, to be undertaken at the Issue Price, will also be included in the Circular.

The Company has today entered into the Placing and Open Offer Agreement with Liberum Capital which contains customary terms and conditions, as will be described in more detail in the Circular. Pursuant to the Placing and Open Offer Agreement, Liberum Capital has conditionally agreed, as agent for the Company, to use its reasonable endeavours to procure Placees for the Placing Shares at the Issue Price. 

Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix to this Announcement (which forms part of this Announcement).

The books for the Accelerated Book Build will open with immediate effect. The books are expected to close no later than 4.00 pm (GMT) today. The timing of the closing of the books and the making of allocations may be accelerated or delayed at Liberum Capital's sole discretion. The Appendix to this Announcement contains the detailed terms and conditions of the Placing and basis on which investors may participate in the Accelerated Book Build. The Placing is not being underwritten by Liberum Capital. Details of the number of Placing Shares conditionally placed with institutional and other investors pursuant to the Placing and gross proceeds will be announced as soon as practicable after the close of the Accelerated Book Build.

Investors who are invited, and who choose, to participate in the Accelerated Book Build may do so by making an oral and legally binding offer to acquire Placing Shares, will be deemed to have read and understood this Announcement in its entirety, including the Appendix, and to be making such offer on the terms and subject to the conditions contained herein and to be making the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

The Placing Shares will be issued and credited as fully paid and will rank pari passu with the Existing Ordinary Shares and Open Offer Shares, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Circular and Notice of General Meeting

The Company expects to publish a circular (the "Circular") later today in connection with the Placing and Open Offer and the Amendment and Restatement of the SPA, which will contain a notice convening the General Meeting in order to approve certain matters necessary to implement the Placing and Open Offer and the Amendment and Restatement of the SPA. The Circular will be posted to Shareholders later today and a copy will be made available on the Company's website www.hornby.plc.uk.

The General Meeting is expected to be held at the offices of the Company's solicitors, Taylor Wessing LLP, 5 New Street Square, London EC4A 3TW at 10.00 a.m. on 10 March 2020. The actions that Shareholders should take to vote on the Resolutions and/or apply for Open Offer Shares will be set out in the Circular, along with the recommendations of the Independent Directors.

Defined terms used in this Announcement will have the meaning (unless the context otherwise requires) as set out in this Announcement and in the Circular which is expected to be posted to Shareholders today and which will be made available on the Company's website www.hornby.plc.uk.

The information contained within this Announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

- ends -

IMPORTANT INFORMATION

This Announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. The Company cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, economic and business conditions, the effects of continued volatility in credit markets, market-related risks such as changes in the price of commodities or changes in interest rates and foreign exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards (IFRS) applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation or regulatory investigations, the success of future explorations, acquisitions and other strategic transactions and the impact of competition. A number of these factors are beyond the Company's control. As a result, the Company's actual future results may differ materially from the plans, goals, and expectations set forth in the Company's forward-looking statements. Any forward-looking statements made in this Announcement by or on behalf of the Company speak only as of the date they are made. Except as required by the Financial Conduct Authority (the FCA), the London Stock Exchange or applicable law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this Announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

This Announcement is for information purposes only and shall not constitute an offer to buy, sell, issue, or subscribe for, or the solicitation of an offer to buy, sell, issue, or subscribe for any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This Announcement has been issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Liberum Capital Limited or by any of its affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Liberum Capital Limited, which is authorised and regulated in the United Kingdom by the FCA, is acting for the Company and for no-one else in connection with the Placing, and will not be responsible to anyone other than the Company for providing the protections afforded to its customers or for providing advice to any other person in relation to the Placing or Open Offer any other matter referred to herein.

The distribution of this Announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company or Liberum Capital Limited that would permit an offering of such shares or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company and Liberum Capital Limited to inform themselves about, and to observe such restrictions.

Persons (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward a copy of the Appendix or this Announcement should seek appropriate advice before taking any action.

The Placing Shares to which this Announcement relates may be illiquid and / or subject to restrictions on their resale. Prospective purchasers of the Placing Shares should conduct their own due diligence on the Placing Shares. If you do not understand the contents of this Announcement you should consult an authorised financial adviser.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement.

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II 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, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (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 Shares offer no guaranteed income and no capital protection; and an investment in the Placing Shares 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 and Open Offer.

Furthermore, it is noted that, notwithstanding the Target Market Assessment, Liberum Capital 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 MiFID II; 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 or Open Offer Shares.

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

FURTHER DETAILS OF THE PROPOSED PLACING AND OPEN OFFER AND PROPOSED AMENDMENT AND RESTATEMENT OF THE SALE AND PURCHASE AGREEMENT

1 Introduction

Amendment and restatement of the LCD SPA

1.1 On 8 December 2017 the Company completed the acquisition of 49 per cent. of the issued ordinary share capital of LCD Enterprises, for a consideration of £1.6 million payable in cash pursuant to the LCD SPA. LCD Enterprises holds majority interests in the Oxford Diecast Group, which supplies diecast model vehicles and railway products to the collector, gift and hobby markets globally. 

1.2 The LCD SPA also contains rights in favour of the parties to buy or sell (as applicable) certain LCD Enterprises shares in specified circumstances as follows:

1.3 For the duration of the Lock-in Period each of Lyndon Davies and Catherine Davies have undertaken that each of them shall not dispose of, or agree to dispose of, directly or indirectly, any of their remaining shares in LCD Enterprises (the "Restricted Shares") or any interest in or right to them or charge or agree to charge or otherwise encumber any of the Restricted Shares or interest in them.

1.4 On 20 February 2020, the Company entered into the Amendment and Restatement Agreement, a conditional agreement pursuant to which the LCD SPA will be amended and restated such that the end of the Lock-In Period is extended to 8 December 2023, being the sixth anniversary of completion of the LCD SPA.

1.5 The Amendment and Restatement Agreement is conditional on the passing of an ordinary resolution by the Shareholders at the General Meeting, which has been convened for 10.00 a.m. on 10 March 2020. If the resolution is not approved by Shareholders at the General Meeting, the Amendment and Restatement Agreement will not be implemented. Subject to the resolution being passed at the General Meeting, it is expected that the Amendment and Restatement Agreement will complete on 10 March 2020.

2 Background to and reasons for the PROPOSED PLACING and Open Offer AND THE PROPOSED AMENDMENT AND RESTATEMENT AGREEMENT

The Progress of the Turnaround

2.1 As was most recently stated in the Company's Christmas trading update announcement of 6 January 2020 and in the Company's half-year results announcement for the period ended 30 September 2019, released on 28 November 2019, the Company has been working through a turnaround plan since Lyndon Davies joined as CEO on 3 October 2017. The strategy included a number of different strands, but a key part was ending the discounting of product to rebuild brand integrity. This strategy is starting to bear fruit as trust is returning and sales are reverting to a growth trajectory. There is still much work to do with regards to the turnaround, but the Company has positive momentum and would like to capitalise on this by investing at a faster rate. The Board believes that this will allow the Company to accelerate the progress back to profitability.

Accelerate Product Development

2.2 The future revenue and profitability of the Company will be defined by the level of innovation and the quality of the products delivered to its customers. Having learned from the first full year of products designed by the restructured engineering teams, the Board has confidence in the Company's ability to be more ambitious about plans for its product lines over the next few years. It takes between 1½ - 2 years from inception to develop and deliver most of the Company's products. The Company has found that its customers appreciate the care and attention it pays to getting the details right and maintaining industry leading quality standards. The Company must continue to get these important aspects right, but it must also accelerate the development of new products in order to accelerate its sales. The Board believes that this will be facilitated by increased investment.

2.3 The Company announced some exciting new innovations at the start of this year at their trade previews including an app-based Bluetooth analogue controller for its model railways. This is just the start of the Company's pipeline of development and innovation and the benefits of accelerating these types of product to market are now becoming evident.

2.4 The Company is proposing to deploy part million of the proceeds of the Placing and Open Offer to invest in both inventory and capital expenditure, which the Board believes will accelerate the next stage of the turnaround.

Build Modern Routes to Market

2.5 The Company's customers are increasingly researching, finding and buying its products online. However, the Company's online presence is one of the weakest parts of its infrastructure but is perhaps becoming the most important portal for its customers. This is a new challenge and the Company has been studying it in detail. Following a great deal of work with various technical advisors, it has become apparent that a significant overhaul of the Company's website and its approach to engaging with customers online is required. The Company also recognises it must ramp up and modernise its efforts to find new customers through the various social platforms online too.

2.6 In pursuit of the Company's aim to be the gold standard of the industry, extra investment in people and infrastructure is needed which was not budgeted for in the original turnaround plan. The Company expects to deploy part of the proceeds of the Placing and Open Offer on this as part of the turnaround. The Board expects this investment to deliver benefits derived both from finding new customers and from nurturing the loyalty of existing ones.

Upgrade Central Systems & Processes

2.7 Having been through approximately 2 years of streamlining systems, people and processes in respect of central functions, the Company has made a great deal of savings but has also identified some bottlenecks in the basic infrastructure on which its business runs. The Company has identified ways in which it will need to upgrade its systems in order to make sure it can remain efficient and keep staff focussed on the customer, as opposed to internal administrative burdens. The Board believes the best way to ensure the Company's infrastructure is effective and scalable is to migrate and upgrade the Company's systems and processes to the latest cost-effective technology. Furthermore, the Board believes this project will assist with the upgrade of the Company's online presence.

2.8 The Board anticipates that this aspect of the turnaround will require investment to deliver savings in the back end of the Company's business.

Improve Balance Sheet Strength & Efficiency

2.9 The Company's business has a seasonal working capital profile requiring significant stock orders before Christmas to ensure its customers receive timely deliveries over the Christmas period. This absorbs cash, and the Company must strengthen its balance sheet to make sure it has a margin of balance sheet surplus to absorb any unforeseen events.

2.10 Part of the net proceeds of the Placing and Open Offer is proposed to be deployed to temporarily pay back debt which will then be drawn back down as the Company pays for deliveries before Christmas. The Company has strong relationships with its two current lenders, one of which is Phoenix which provides the Company with a £9 million secured credit facility, and will keep the full extent of its debt facilities in place. This means the Company will have a much larger margin of safety during its peak working capital requirements. This change will have the added benefit of saving interest costs during the quieter parts of the year.

Acquisitions

2.11 The Company has no current plans to acquire external brands but does have a "wishlist" of specific, heritage brands were they to become available for sale. The Company owns 49 per cent. of LCD Enterprises which owns the long standing Oxford Diecast brand and may have the opportunity to acquire the rest of this company in the near future, as outlined in paragraph 2.12.

Amendment and Restatement Agreement

2.12 The parties to the LCD SPA have agreed to enter into the Amendment and Restatement Agreement to extend the period within which the parties to the LCD SPA may exercise certain options as described in paragraph 1.2. After discussion with the owners of LCD Enterprises (which include the Company's CEO, Lyndon Davies), it was mutually agreed that the Board should continue to focus capital and management resource on accelerating the Company's return to profitability and that an acquisition by the Company of the remaining 51 per cent. shareholding in LCD Enterprises at this stage in the turnaround would absorb resources which could be put to use in the existing brands. After thinking through the roadmap in both businesses, it was deemed a better long term strategy for all parties involved to maintain flexibility to consider the acquisition at a later date.

Incentive Arrangements

2.13 Following completion of the Placing and Open Offer, the Board intends to put in place appropriate incentive arrangements for the executive team of the Group, in order to align their interests with those of Shareholders. A further announcement in connection with this will be made in due course.

3 Use of Proceeds

It is currently expected that the net proceeds of the Placing and Open Offer, expected to be £14.7 million, will be utilised as follows:

·; To reinvigorate the Group's key brands through accelerated product development and additional capital expenditure.

·; To invest in a modern digital strategy.

·; To upgrade our central systems.

·; To reduce interest costs during non-peak working capital months, provide a margin of safety on the balance sheet and allow the business to do opportunistic acquisitions. The Company intends to reduce the balance drawn on both the £12 million Asset Based Lending facility with PNC Credit Limited and the £9 million loan facility Phoenix Asset Management Partners. Both of these facilities are intended to remain in place to continue to be drawn upon as required going forwards.

4 Current trading and prospects

4.1 Revenue and gross profit for the 10 months ended 31 January 2020 are ahead of prior year and in line with management expectations. The Directors expect this trend to continue to year end. Whilst the operating loss for the 10 months ended 31 January 2020 has narrowed from the prior year the Company is in the middle of the turnaround plan and further investment is required to complete the transition and return to profitability.

4.2 As at 31 January 2020, the Company's cash balance was £1,349,000 with £4,564,000 available to be drawn under the Company's loan facilities.

5 Details of the PROPOSED Placing and Open Offer

5.1 The Company is proposing to raise, in aggregate, approximately £15 million (before expenses) through the issue of 41,666,666 New Ordinary Shares pursuant to a Placing and an Open Offer at the Issue Price. Under the Firm Placing, 37,177,974 Placing Shares are expected to be placed firm with the Firm Placees and with a further 4,488,692 Placing Shares expected to be placed conditionally pursuant to the Conditional Placing with the Conditional Placees, subject to take-up of those shares by Qualifying Shareholders under the Open Offer. Accordingly, up to 4,488,692 New Ordinary Shares are expected to be offered to Qualifying Shareholders pursuant to the Open Offer at the Issue Price. Phoenix and Artemis are not Qualifying Shareholders and, accordingly, will not participate in the Open Offer. The Conditional Placing is intended to ensure that any Open Offer Shares not applied for under the Open Offer may instead be taken up by the Conditional Placees pursuant to the Placing.

5.2 The Issue Price is equal to the Closing Price of 36.0 pence per Ordinary Share on 20 February 2020.

5.3 The aggregate number of New Ordinary Shares to be issued pursuant to the Placing and Open Offer is expected to, on Admission, represent approximately 24.96 per cent. of the Enlarged Share Capital.

5.4 The Placing and Open Offer could result in a proportionate dilution of the holdings of existing Shareholders. On Admission, Shareholders who do not participate in the Placing or the Open Offer will experience an immediate dilution of approximately 24.96 per cent.

5.5 Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. On the assumption that, amongst other things, the necessary resolutions are passed by Shareholders at the General Meeting, it is expected that Admission of the New Ordinary Shares will become effective at 8.00 a.m. on 12 March 2020.

5.6 The New Ordinary Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after Admission in respect of Ordinary Shares and will otherwise rank on Admission pari passu in all respects with the Existing Ordinary Shares. The New Ordinary Shares are not being made available to the public and are not being offered or sold in any jurisdiction where it would be unlawful to do so.

The Open Offer

5.7 The Company considers it important that Shareholders who have not taken part in the Placing to have an opportunity to participate in the proposed fundraising in order that they are able to maintain their existing proportional shareholding in the Company. The Company will therefore provide all Qualifying Shareholders other than Phoenix and Artemis with the opportunity to subscribe for up to 4,488,692 Open Offer Shares at the Issue Price pursuant to an Open Offer to raise, in aggregate, up to £1.6 million (before expenses). This will allow Qualifying Shareholders to participate on a proportional basis.

5.8 Subject to fulfilment of the conditions set out below, the Open Offer will provide Qualifying Shareholders with the opportunity to apply to acquire Open Offer Shares at the Issue Price pro rata to their holdings of Existing Ordinary Shares held by Qualifying Shareholders as at the Open Offer Record Date on the following basis:

1 Open Offer Share for every 3.006268641 Existing Ordinary Shares held by Qualifying Shareholders

and in proportion for any other number of Existing Ordinary Shares held by Qualifying Shareholders.

5.9 Entitlements to apply to acquire Open Offer Shares will be rounded down to the nearest whole number and any fractional entitlements to Open Offer Shares will be disregarded in calculating an Open Offer Entitlement and will be aggregated and made available to Qualifying Shareholders pursuant to the Excess Application Facility.

5.10 The Open Offer will be conditional upon, inter alia, the passing of the necessary resolutions at the General Meeting and Admission. The proceeds of the Open Offer are anticipated to amount to up to £1.6 million, before expenses. If the conditions of the Open Offer are not satisfied, the Open Offer will not be implemented and any Open Offer Entitlements admitted to CREST will thereafter be disabled and application monies under the Open Offer will be refunded to the applicants, by cheque (at the applicant's risk) in the case of Qualifying Non-CREST Shareholders and by way of a CREST payment in the case of Qualifying CREST Shareholders, without interest, as soon as practicable, but within 14 days, thereafter.

Excess Applications

5.11 The Open Offer will be structured to allow Qualifying Shareholders to subscribe for Open Offer Shares at the Issue Price pro rata to their holdings of the Existing Ordinary Shares held by Qualifying Shareholders. Qualifying Shareholders will also be able to make applications in excess of their pro rata initial entitlement up to an amount equal to the total number of Open Offer Shares available under the Open Offer less an amount equal to such Qualifying Shareholder's Open Offer Entitlement. To the extent that pro rata entitlements to Open Offer Shares are not subscribed for by Qualifying Shareholders, such Open Offer Shares will be available to satisfy such excess applications. Applications under the Excess Application Facility may be allocated in such manner as the Directors may determine, in their absolute discretion, and no assurance can be given that any applications under the Excess Application Facility by Qualifying Shareholders will be met in full or in part or at all.

5.12 Qualifying Shareholders should note that the Open Offer is not a rights issue. Qualifying Non-CREST Shareholders should be aware that the Application Form is not a negotiable document and cannot be traded. Qualifying Shareholders should also be aware that in the Open Offer, unlike in a rights issue, any Open Offer Shares not applied for will not be sold in the market nor will they be placed for the benefit of Qualifying Shareholders who do not apply under the Open Offer.

Overseas Shareholders

5.13 Certain Overseas Shareholders may not be permitted to subscribe for Open Offer Shares pursuant to the Open Offer and should refer to of Part 3 of the Circular.

Placing and Open Offer Agreement

5.14 A placing and open offer agreement has been entered into between (1) the Company and (2) Liberum Capital in connection with the Placing and Open Offer and pursuant to which Liberum Capital has agreed, in accordance with its terms, to use reasonable endeavours to place the Placing Shares with Placees. The terms of the Placing and Open Offer Agreement provide that the Placing is conditional, amongst other things, on:

The Placing and Open Offer Agreement contains customary warranties given by the Company to Liberum Capital as to matters relating to the Group and its business and a customary indemnity given by the Company to Liberum Capital in respect of liabilities arising out of or in connection with the Placing and Open Offer. Liberum Capital is entitled to terminate the Placing and Open Offer Agreement in certain circumstances prior to Admission including circumstances where there is a breach of warranty or on the occurrence of certain force majeure events.

Admission, settlement and dealings

5.15 Application will be made to the London Stock Exchange for the New Ordinary Shares, to be admitted to trading on AIM. Subject to certain conditions, it is expected that Admission will become effective and that dealings in respect of such New Ordinary Shares will commence at 8.00 a.m. on 12 March 2020. Further information in respect of settlement and dealings in the Open Offer Shares is set out in Part 3 of the Circular.

5.16 The action to be taken for Qualifying Shareholders to apply for Open Offer Shares is described in paragraph 10 of this Part 1.

6 Related party transactions

Amendment and Restatement Agreement

6.1 Lyndon Davies is a director of the Company. Catherine Davies is a related party to Lyndon Davies.

6.2 The participation of Lyndon Davies and Catherine Davies in the Amendment and Restatement Agreement is, for the purposes of AIM Rule 13, considered a "Related Party Transaction". The LCD SPA Independent Directors (in respect of the Amendment and Restatement Agreement) consider, having consulted with the Company's nominated adviser, Liberum Capital, that the terms of the Amendment and Restatement Agreement are fair and reasonable insofar as Shareholders are concerned.

7 SUBSTANTIAL PROPERTY TRANSACTION

As Lyndon Davies is a director of the Company, and Catherine Davies is a person "connected with" Lyndon Davies as defined under section 252 of the Act, and due to the fact that the consideration which will become payable in the event that either (i) the Company purchases the remaining 51 per cent. stake in LCD Enterprises from Lyndon Davies and Catherine Davies or (ii) Lyndon Davies re-acquires the 49 per cent. stake in LCD Enterprises, will be in excess of £100,000, these possible subsequent share transfers constitute, collectively and individually, substantial property transactions under sections 190 and 191 of the Act. Sections 190 and 191 of the Act require that any substantial property transaction with a director of a company must be approved in advance by shareholders at a general meeting of such company. Consequently, completion of the Amendment and Restatement Agreement is conditional upon obtaining the approval of Shareholders. Resolution 1 is an ordinary resolution that seeks Shareholder approval of the Amendment and Restatement Agreement.

8 GEneral meeting

8.1 The Directors currently have existing authorities to allot shares and disapply pre-emption rights under section 551 and section 570 of the Act which were obtained at the Company's Annual General Meeting held on 25 September 2019. However, these are insufficient to enable the Company to allot and issue the full amount of New Ordinary Shares pursuant to the Placing and Open Offer. Accordingly, in order for the Company to allot and issue the New Ordinary Shares, the Company needs to first obtain approval from its Shareholders to grant to the Board additional authority to allot the New Ordinary Shares and disapply statutory pre-emption rights which would otherwise apply to such allotment. The Company is therefore also seeking Shareholder authority to increase the Director's general authority to allot securities and disapply pre-emption rights pursuant to sections 551 and 570 of the Act respectively.

8.2 As previously described, the Company is also seeking Shareholder approval of the Amendment and Restatement Agreement.

8.3 A notice convening the General Meeting of the Company to be held at the offices of the Company's solicitors, Taylor Wessing LLP at 5 New Street Square, London EC4A 3TW on 10 March 2020 at 10.00.a.m. will be contained in the Circular to be posted to Shareholders, at which the Resolutions will be proposed.

8.4 The Resolutions can be summarised as follows:

8.5 Save in respect of the allotment of the Placing Shares and Open Offer Shares, the grant of options to employees under employee share plans or other similar incentive arrangements and pursuant to any exercise of existing options in respect of Ordinary Shares, the Directors have no current intention to allot shares, or rights to subscribe or convert into shares, in the capital of the Company.

8.6 Shareholders should note that, if Resolution 1 is not passed by Shareholders at the General Meeting, the Amendment and Restatement Agreement will not be implemented.

8.7 Shareholders should note that, if the Resolutions 2 and 3 are not passed by Shareholders at the General Meeting, the Placing and Open Offer will not be implemented.

9 Irrevocable undertakings

9.1 John Stansfield, a Director who holds 64,052 Existing Ordinary Shares, representing 0.05 per cent. of the issued Existing Ordinary Shares, has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by his connected persons (as defined in section 252 of the Act), in favour of the Resolutions in respect of his own (or, as applicable, his connected persons') beneficial holding of Existing Ordinary Shares.

9.2 Lyndon Davies, a Director who holds 596,670 Existing Ordinary Shares, representing 0.48 per cent. of the issued Existing Ordinary Shares, has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by his connected persons (as defined in section 252 of the Act), in favour of Resolutions 2 and 3 in respect of his own (or, as applicable, his connected persons') beneficial holding of Existing Ordinary Shares.

9.3 Kirstie Gould, a Director who holds 41,276 Existing Ordinary Shares, representing 0.03 per cent. of the issued Existing Ordinary Shares, has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by her connected persons (as defined in section 252 of the Act), in favour of the Resolutions in respect of her own (or, as applicable, her connected persons') beneficial holding of Existing Ordinary Shares.

9.4 James Wilson, a Director who holds 31,000 Existing Ordinary Shares, representing 0.02 per cent. of the issued Existing Ordinary Shares, has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by his connected persons (as defined in section 252 of the Act), in favour of Resolution 1 in respect of his own (or, as applicable, his connected persons') beneficial holding of Existing Ordinary Shares.

9.5 Phoenix (in its capacity as manager of certain discretionary funds which hold, in aggregate 74.66 per cent. of the issued ordinary share capital of the Company) has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by its relevant funds, in favour of the Resolutions.

9.6 Artemis (in its capacity as manager of certain discretionary funds which hold, in aggregate 14.56 per cent. of the issued ordinary share capital of the Company) has given an irrevocable undertaking to vote or, where applicable, to procure the casting of votes by its relevant funds, in favour of the Resolutions.

10 Intentions of the directors in relation to the open offer

The Directors intend to subscribe for their full pro rata entitlements under the Open Offer and do not intend to subscribe for any further Shares under the Excess Application Facility.

11 Recommendations

Amendment and Restatement Agreement

11.1 Shareholders should note that, if Resolution 1 is not passed by Shareholders at the General Meeting, the Amendment and Restatement Agreement will not be implemented.

11.2 The LCD SPA Independent Directors consider the terms of the Amendment and Restatement Agreement to be in the best interests of Shareholders and of the Company as a whole.

11.3 Accordingly, the LCD SPA Independent Directors unanimously recommend that Shareholders vote in favour of Resolution 1 at the General Meeting. The LCD SPA Independent Directors confirm that they have irrevocably committed to vote in favour of Resolution 1 in respect of their beneficial holdings amounting, in aggregate, to 136,328 Existing Ordinary Shares, representing approximately 0.11 per cent. of the existing issued Ordinary Share capital of the Company.

Placing and Open Offer

11.4 Shareholders should note that, if the Resolutions 2 and 3 are not passed by Shareholders at the General Meeting, the Placing and Open Offer will not be implemented.

11.5 The Independent Directors consider the terms of the Placing and Open Offer to be in the best interests of Shareholders and of the Company as a whole.

11.6 Accordingly, the Independent Directors unanimously recommend that Shareholders vote in favour of Resolutions 2 and 3 at the General Meeting. The Independent Directors confirm that they have irrevocably committed to vote in favour of Resolutions 2 and 3 in respect of their beneficial holdings amounting, in aggregate, to 701,998 Existing Ordinary Shares, representing approximately 0.56 per cent. of the existing issued Ordinary Share capital of the Company.

DEFINITIONS

The following definitions apply throughout this Announcement, unless the context requires otherwise:

APPENDIX: TERMS AND CONDITIONS OF THE PLACING

THIS ANNOUNCEMENT, INCLUDING THIS APPENDIX (TOGETHER, THE "ANNOUNCEMENT") AND THE INFORMATION IN IT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

IMPORTANT INFORMATION ON THE PLACING FOR INVITED PLACEES ONLY.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS APPENDIX AND THE TERMS AND CONDITIONS SET OUT HEREIN ARE FOR INFORMATION PURPOSES ONLY AND ARE DIRECTED ONLY AT: (A) PERSONS WHO ARE IN A MEMBER STATE OF THE EUROPEAN ECONOMIC AREA AND ARE "QUALIFIED INVESTORS" AS DEFINED IN ARTICLE 2(1)(E) OF THE EU PROSPECTUS REGULATION (WHICH MEANS REGULATION (EU) 2017/1129 (AS AMENDED OR SUPERSEDED) (THE PROSPECTUS REGULATION); AND (B) IN THE UNITED KINGDOM, PERSONS WHO ARE: (I) "INVESTMENT PROFESSIONALS" WITHIN THE MEANING OF ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE ORDER) OR PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ("HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC.") OF THE ORDER, AND (II) "QUALIFIED INVESTORS" AS DEFINED IN SECTION 86 OF FSMA AND (C) PERSONS TO WHOM IT MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS). THIS APPENDIX AND THE TERMS AND CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS APPENDIX AND THE TERMS AND CONDITIONS SET OUT HEREIN RELATES 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 AN OFFER OF OR SOLICITATION TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR AS PART OF A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. NO OFFERING OF SECURITIES IS BEING MADE IN THE UNITED STATES. NO MONEY, SECURITIES OR OTHER CONSIDERATION FROM ANY PERSON INSIDE THE UNITED STATES IS BEING SOLICITED AND, IF SENT IN RESPONSE TO THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT, WILL NOT BE ACCEPTED.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF AN INVESTMENT IN PLACING SHARES (AS DEFINED BELOW).

Persons (the Placees) who are invited to and who choose to participate in the Firm Placing or Conditional Placing (together the Placing), by making (or on whose behalf there is made) an oral or written offer to subscribe for Firm Placing Shares or Conditional Placing Shares (together the Placing Shares), will be deemed to have read and understood this Announcement, including this Appendix, in its entirety and to be making such offer on the terms and conditions, and to be providing the representations, warranties, acknowledgements, and undertakings contained in this Appendix. In particular each such Placee represents, warrants and acknowledges to the Company and Liberum Capital that:

1. it is a Relevant Person (as defined above) 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;

2. in the case of any Placing Shares acquired by it as a financial intermediary, as that term is used in Article 3(2) of the Prospectus Regulation, (i) 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 Member State of the European Economic Area other than Qualified Investors or in circumstances in which the prior consent of Liberum Capital has been given to the offer or resale; or (ii) where Placing Shares have been acquired by it on behalf of persons in any member state of the EEA other than Qualified Investors, the offer of those Placing Shares to it is not treated under the Prospectus Regulation as having been made to such persons;

3. it is acquiring the Placing Shares in an "offshore transaction" as defined in and pursuant to Regulation S under the Securities Act; and

4. it understands (or if acting for the account of another person, such person has confirmed that such person understands) the resale and transfer restrictions set out in this Appendix.

The Company and Liberum Capital will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements.

This Announcement does not constitute an offer, and may not be used in connection with an offer, to sell or issue or the solicitation of an offer to buy or subscribe for Placing Shares in any jurisdiction in which such offer or solicitation is or may be unlawful. This Announcement and the information contained herein is not for publication or distribution, directly or indirectly, to persons in the United States, Australia, Canada, Japan or the Republic of South Africa or in any other jurisdiction in which such publication or distribution is unlawful. Persons into whose possession this Announcement may come are required by the Company to inform themselves about and to observe any restrictions of transfer of this Announcement. No public offer of securities of the Company is being made in the United Kingdom, the United States or elsewhere.

In particular, the Placing Shares referred to in this Announcement have not been and will not be registered under the Securities Act or any laws of or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, pledged or otherwise transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States. The Placing Shares are being offered and sold only outside the United States in accordance with Regulation S.

The relevant clearances have not been, nor will they be, obtained from the securities commission of any province or territory of Canada; no prospectus has been lodged with or registered by the Australian Securities and Investments Commission or the Japanese Ministry of Finance or the South African Reserve Bank; and the Placing Shares have not been, nor will they be, registered under or offered in compliance with the securities laws of any state, province or territory of Australia, Canada, Japan or the Republic of South Africa. Accordingly, the Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction outside the United Kingdom.

Persons (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward a copy of this Appendix or the Announcement of which it forms part should seek appropriate advice before taking any action.

This Announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section of this Announcement.

By participating in the Placing, each person who is invited to and who chooses to participate in the Placing will be deemed to have read and understood this Announcement in its entirety, to be participating, making an offer and acquiring Placing Shares on the terms and conditions contained herein and to be providing the representations, warranties, indemnities, acknowledgements and undertakings contained in this Appendix.

In this Appendix, unless the context otherwise requires, "Placee" means a Relevant Person (including individuals, funds or others) on whose behalf a commitment to subscribe for Placing Shares has been given.

Details of the Placing and Open Offer Agreement and the Placing Shares

Liberum Capital has entered into the Placing and Open Offer Agreement with the Company under which Liberum Capital has conditionally agreed on the terms and subject to the conditions set out therein, as agent for the Company, to use its reasonable endeavours to place the Placing Shares at the Issue Price with certain institutional investors. The Placing is not being underwritten by Liberum Capital or any other person.

The number of Placing Shares at the Issue Price will be determined following completion of the Accelerated Book Build as set out in this Announcement.

The Firm Placing Shares are not subject to clawback and do not form part of the Conditional Placing and Open Offer.

The Conditional Placing Shares are being offered, subject to clawback in respect of valid applications received for Open Offer Shares by Qualifying Shareholders pursuant to the Open Offer.

Further details of the Placing procedure and terms on which the Firm Placing Shares and Conditional Placing Shares are being offered are set out below.

All of the Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with each other, the Open Offer Shares and the Existing Ordinary Shares, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such Ordinary Shares after the date of issue of the Placing Shares.

Application for admission to trading

Application will be made for admission of the Firm Placing Shares and Conditional Placing Shares to trading on AIM, alongside the Open Offer Shares. It is expected that settlement of such shares and Admission will become effective on or around 8.00 a.m. on 12 March 2020 and that dealings in the Placing Shares and Open Offer Shares will commence at that time.

Accelerated Book Build

Liberum Capital will today commence an Accelerated Book Building process in respect to the Placing to determine demand for participation in the Placing by any Placees at the Issue Price. This Appendix gives details of the terms and conditions of, and the mechanics of participation in, the Accelerated Book Build. No commissions will be paid to Placees or by Placees in respect of any Placing Shares.

Liberum Capital and the Company shall be entitled to effect the Placing (in whole or in part) by such alternative method to the Accelerated Book Build as they may, in their sole discretion, determine.

Participation in, and principal terms of, the Placing

1. Liberum Capital is acting as nominated adviser and sole bookrunner to the Placing, as agent for and on behalf of the Company. Liberum Capital is regulated by the FCA, is acting exclusively for the Company and no one else in connection with the matters referred to in this Announcement and will not be responsible to anyone other than the Company for providing the protections afforded to the customers of Liberum Capital or for providing advice in relation to the matters described in this Announcement.

2. Liberum Capital is arranging the Accelerated Book Build and Placing as an agent of the Company.

3. Participation in the Accelerated Book Build will only be available to persons who may lawfully be, and are, invited to participate by Liberum Capital. Liberum Capital and its affiliates are entitled to enter bids in the Accelerated Book Build as principal.

4. The Accelerated Book Build will establish the number of Placing Shares to be issued at the Issue Price, which will be agreed between Liberum Capital and the Company following completion of the Accelerated Book Build. The number of Placing Shares will be announced on a Regulatory Information Service following the completion of the Accelerated Book Build.

5. To bid in the Accelerated Book Build, prospective Placees should communicate their bid by telephone to their usual sales contact at Liberum Capital. Each bid should state the number of Placing Shares which the prospective Placee wishes to subscribe for at the Issue Price. Bids may be scaled down by Liberum Capital on the basis referred to in paragraph 9 below.

6. The Accelerated Book Build is expected to close no later than 4.00 p.m. (London) today but may be closed earlier or later at the discretion of Liberum Capital. Liberum Capital may, in agreement with the Company, accept bids that are received after the Accelerated Book Build has closed.

7. Each Placee's allocation of Firm Placing Shares and Conditional Placing Shares will be confirmed to Placees orally, or by email, by Liberum Capital following the close of the Accelerated Book Build. A bookrunner's oral or emailed confirmation to such Placee will constitute an irrevocable legally binding commitment upon such person (who will at that point become a Placee) in favour of Liberum Capital and the Company, under which it agrees to subscribe for the number of Placing Shares allocated to it at the Issue Price (and in the respective numbers of Firm Placing Shares and Conditional Placing Shares (subject to clawback) so allocated) on the terms and conditions set out in this Appendix and in accordance with the Company's Articles of Association. Each Placee acknowledges that the Conditional Placing Shares are being offered subject to clawback by Qualifying Shareholders who have made valid applications for Open Offer Shares under the Open Offer in accordance with the procedure described in the paragraph entitled "Placing Procedure" below. Accordingly, any bid made in the Accelerated Bookbuild and the subsequent apportionment of Conditional Placing Shares allocated to a Placee in the Conditional Placing will be subject to scale back, depending on the number of Open Offer Shares to be issued in order to satisfy valid applications received from Qualifying Shareholders.

8. The Company will make a further announcement following the close of the Accelerated Book Build detailing the number of Firm Shares and Conditional Placing Shares (subject to clawback) to be issued at the Issue Price.

9. Subject to paragraphs 5 and 6 above, Liberum Capital may choose to accept or reject bids, either in whole or in part, on the basis of allocations determined at its discretion (in consultation with the Company) and may scale down any bids for this purpose on such basis as they may determine. Liberum Capital may also, notwithstanding paragraphs 5 and 6 above, subject to the prior consent of the Company: (i) allocate Placing Shares after the time of any initial allocation to any person submitting a bid after that time; and (ii) allocate Placing Shares after the Accelerated Book Build has closed to any person submitting a bid after that time.

10. A bid in the Accelerated Book Build will be made on the terms and subject to the conditions in this Announcement and will be legally binding on the Placee on behalf of which it is made and, except with the consent of Liberum Capital, will not be capable of variation or revocation after the time at which it is submitted. Each Placee will also have an immediate, separate, irrevocable and binding obligation, owed to Liberum Capital, to pay to Liberum Capital (or as Liberum Capital may direct) in cleared funds an amount equal to the product of the Issue Price and the number of Firm Placing Shares and, once apportioned after clawback in accordance with the Placing Procedure outlined below, any Conditional Placing Shares for which such Placee has agreed to subscribe. Each Placee's obligations will be owed to Liberum Capital.

11. Except as required by law or regulation, no press release or other announcement will be made by Liberum Capital or the Company using the name of any Placee (or its agent), in its capacity as Placee (or agent), other than with such Placee's prior written consent.

12. Irrespective of the time at which a Placee's allocation pursuant to the Placing is confirmed, settlement for all Placing Shares to be acquired pursuant to the Placing will be required to be made at the same time, on the basis explained below under "Registration and Settlement".

13. All obligations under the Accelerated Book Build and Placing will be subject to fulfilment of the conditions referred to below under "Conditions of the Placing" and to the Placing not being terminated on the basis referred to below under "Right to terminate under the Placing and Open Offer Agreement".

14. By participating in the Accelerated Book Build, 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.

15. To the fullest extent permissible by law and the applicable rules of the FCA, neither Liberum Capital nor any of its affiliates shall have any liability to Placees (or to any other person whether acting on behalf of a Placee or otherwise whether or not a recipient of these terms and conditions) in respect of the Placing. Each Placee acknowledges and agrees that the Company is responsible for the allotment of the Placing Shares to the Placees and Liberum Capital shall have no liability to the Placees for the failure of the Company to fulfil those obligations. In particular, neither Liberum Capital nor any of its affiliates shall have any liability (including to the extent permissible by law, any fiduciary duties) in respect of Liberum Capital's conduct of the Accelerated Book Build or of such alternative method of effecting the Placing (in whole or in part) as Liberum Capital and the Company may agree.

Conditions of the Placing

Completion of both the Firm Placing and Conditional Placing is conditional on, inter alia:

(a) the issue of the Circular by the Company by 5.00 p.m. on 21 February 2020;

(b) the passing of Resolutions 2 and 3 set out in the notice of general meeting contained in the Circular (without material amendment);

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

(d) none of the warranties or undertakings in the Placing and Open Offer Agreement being untrue, inaccurate or misleading in any material respect;

(e) Admission becoming effective by no later than 8.00 a.m. on 12 March 2020 (or such later date as the Company and Liberum Capital may agree (being not later than 8.00 a.m. on 31 March 2020).

If: (i) any of the conditions contained in the Placing and Open Offer Agreement in relation to the Placing Shares are not fulfilled or waived by Liberum Capital by the respective time or date where specified (or such later time or date as the Company and Liberum Capital may agree, but not being later than 8.00 a.m. on 31 March 2020); (ii) any of such conditions becomes incapable of being fulfilled and Liberum has not exercised its rights to waive or extend the time for fulfilment of such conditions; or (iii) the Placing and Open Offer Agreement is terminated in its entirety in the circumstances specified below, the Placing will lapse 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 against Liberum Capital in respect thereof.

Liberum Capital may, at its discretion and upon such terms as it thinks fit, waive, or extend the period for, 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 and Open Offer Agreement save that the above condition relating to Admission taking place may not be waived. Any such extension or waiver will not affect Placees' commitments as set out in this Announcement.

Neither Liberum Capital nor the Company 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 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 Liberum Capital.

Right to terminate under the Placing and Open Offer Agreement

Liberum Capital is entitled, at any time before Admission, to terminate its obligations under the Placing and Open Offer Agreement by giving notice to the Company in certain circumstances, including, inter alia:

(a) a material breach of the warranties given by the Company in the Placing and Open Offer Agreement; or

(b) the Company has failed to comply with its obligations under the Placing and Open Offer Agreement, the Companies Act, FSMA, the FS Act, MAR, the AIM Rules or other applicable law; or

(c) in Liberum Capital's opinion, there having been a material adverse change in the financial position and/or prospects of the Group; or

(d) the occurrence of a force majeure event which, in the opinion of Liberum Capital, will or is likely to be prejudicial to the Group or the Placing.

Following Admission, the Placing and Open Offer Agreement is not capable of termination to the extent that it relates to the Placing of the Placing Shares. The rights and obligations of the Placees shall terminate only in the circumstances described in these terms and conditions and will not be subject to termination by the Placee or any prospective Placee at any time or in any circumstances. By participating in the Placing, Placees agree that the exercise by Liberum Capital of any right of termination or other discretion under the Placing and Open Offer Agreement shall be within the absolute discretion of Liberum Capital, and that it need not make any reference to Placees and that it shall have no liability to Placees whatsoever in connection with any such exercise.

No Prospectus

The Placing Shares are being offered to a limited number of specifically invited persons only and will not be offered in such a way as to require a prospectus in the United Kingdom or in any other jurisdiction. No offering document, admission document or prospectus has been or will be submitted to be approved by the FCA in relation to the Placing, and any Placees' commitments will be made solely on the basis of the information contained in the Announcement (including this Appendix) and the Exchange Information (as defined further below).

Each Placee, by accepting a participation in the Placing, agrees that the content of this Announcement is exclusively the responsibility of the Company and confirms that it has neither received nor relied on any other information (other than the Exchange Information), representation, warranty, or statement made by or on behalf of the Company or Liberum Capital or any other person and neither Liberum Capital nor the Company nor any other person will be liable for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement which the Placees may have obtained or received and, if given or made, such information, representation, warranty or statement must not be relied upon as having been authorised by any of Liberum Capital, the Company, or their respective officers, directors, employees or agents.

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. Neither the Company nor Liberum Capital is making any undertaking or warranty to any Placee regarding the legality of an investment in the Placing Shares by such Placee under any legal, investment or similar laws or regulations. No Placee should consider any information in this Announcement to be legal, tax or business advice. Each Placee should consult its own solicitor, tax adviser and financial adviser for independent legal, tax and financial advice regarding an investment in the Placing Shares. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.

Placing Procedure

Placees shall acquire the Firm Placing Shares and Conditional Placing Shares to be issued pursuant to the Placing (after clawback) and any allocation of the Firm Placing Shares and Conditional Placing Shares (subject to clawback) to be issued pursuant to the Placing will be notified to them on or around 10 March 2020 (or such other time and/or date as the Company and Liberum Capital may agree).

Placees will be called upon to subscribe for, and shall subscribe for, the Conditional Placing Shares only to the extent that valid applications by Qualifying Shareholders under the Open Offer are not received by 11.00 a.m. on 9 March 2020 (or by such later time and/or date as the Company may agree with Liberum Capital) or if applications have otherwise not been deemed to be valid in accordance with the terms and conditions of the Circular and, in respect of qualifying non-CREST holders only, the Application Form.

Payment in full for any Firm Placing Shares and Conditional Placing Shares so allocated in respect of the Placing at the Issue Price must be made by no later than 11.00 am on 9 March 2020 (or such other date as shall be notified to each Placee by Liberum Capital) on the closing date for the Open Offer (or such other time and/or date as the Company and Liberum Capital may agree). Liberum Capital will notify Placees if any of the dates in these terms and conditions should change, including as a result of delay in the crediting of the Open Offer Entitlements in CREST, Admission or otherwise.

Registration and Settlement

Settlement of transactions in the Placing Shares (ISIN: GB00B01CZ652) following Admission will take place within the system administered by Euroclear UK & Ireland Limited (CREST) provided that, subject to certain exceptions, Liberum Capital reserves the right to require settlement for, and delivery of, the Placing Shares (or a portion thereof) to Placees by such other means that they deem necessary if delivery or settlement is not possible or practicable within CREST within the timetable set out in this Announcement or would not be consistent with the regulatory requirements in any Placee's jurisdiction. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions that it has in place with Liberum Capital.

Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of two (2) percentage points above LIBOR as determined by Liberum Capital.

Each Placee is deemed to agree that, if it does not comply with these obligations, Liberum Capital may sell any or all of the Placing Shares allocated to that Placee on such Placee's behalf and retain from the proceeds, for Liberum Capital's account and benefit (as agent for the Company), an amount equal to the aggregate amount owed by the Placee plus any interest due. 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 or securities transfer tax (together with any interest or penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf. By communicating a bid for Placing Shares, each Placee confers on Liberum Capital all such authorities and powers necessary to carry out any such sale and agrees to ratify and confirm all actions which Liberum Capital lawfully takes in pursuance of such sale.

If Placing Shares are to be delivered to a custodian or settlement agent, Placees should ensure that the trade confirmation or contract note is copied and delivered immediately to the relevant person within that organisation.

The relevant settlement details are as follows:

Insofar as Placing Shares are registered in a Placee's name or that of its nominee or in the name of any person for whom a Placee is contracting as agent or that of a nominee for such person, such Placing Shares should, subject as provided below, be so registered free from any liability to UK stamp duty or stamp duty reserve tax or securities transfer tax. Placees will not be entitled to receive any fee or commission in connection with the Placing.

Representations, Warranties and Further Terms

By participating in the Placing each Placee (and any person acting on such Placee's behalf) makes the following representations, warranties, acknowledgements, agreements and undertakings (as the case may be) to the Company and Liberum Capital:

1. it represents and warrants that it has read and understood this Announcement, including the Appendix, in its entirety and that its subscription for Placing Shares is subject to and based upon all the terms, conditions, representations, warranties, acknowledgements, agreements and undertakings and other information contained herein and undertakes not to redistribute or duplicate this Announcement;

2. it acknowledges that no offering document, admission document or prospectus has been prepared in connection with the Placing and represents and warrants that it has not received and will not receive a prospectus, admission document or other offering document in connection therewith;

3. it acknowledges that the Existing Ordinary Shares are admitted to trading on AIM, and the Company is therefore required to publish certain business and financial information in accordance with the AIM Rules and EU Regulation 596/2014 (collectively "Exchange Information");

4. it acknowledges that none of Liberum Capital, the Company, any of their respective affiliates or any person acting on behalf of any of them has provided, and will not provide it, with any material regarding the Placing Shares or the Company other than this Announcement; nor has it requested any of Liberum Capital, the Company, any of their respective affiliates or any person acting on behalf of any of them to provide it with any such information;

5. it acknowledges that the content of this Announcement is exclusively the responsibility of the Company, and that none of Liberum Capital, their respective affiliates or any person acting on behalf of any of them has or shall have any liability for any information, representation or statement contained in this Announcement or any information previously or concurrently published by or on behalf of the Company, and will not be liable for any Placee's decision to participate in the Placing based on any information, representation or statement contained in this Announcement or otherwise. Each Placee further represents, warrants and agrees that the only information on which it is entitled to rely and on which such Placee has relied in committing itself to acquire the Placing Shares is contained in this Announcement and any Exchange Information, such information being all that it deems necessary 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, warranties or statements made by any of Liberum Capital or the Company, or, if received, it has not relied upon any such information, representations, warranties or statements (including any management presentation that may have been received by any prospective Placee) and neither Liberum Capital nor the Company will be liable for any Placee's decision to accept an invitation to participate in the Placing based on any other information, representation, warranty or statement. Each Placee further acknowledges and agrees that it has relied solely on its own investigation of the business, financial or other position of the Company in deciding to participate in the Placing and it will not rely on any investigation that Liberum Capital, its affiliates or any person acting on behalf of any of them has or may have conducted;

6. it represents and warrants that it has neither received nor relied on any unpublished price sensitive information concerning the Company in accepting this invitation to participate in the Placing;

7. it acknowledges that none of Liberum Capital, its affiliates or any person acting on behalf of any of them has or shall have any liability for the Exchange Information, any publicly available or filed information or any representation relating to the Company, provided that nothing in this paragraph excludes the liability of any person for fraudulent misrepresentation made by that person;

8. it represents and warrants that it is acquiring the Placing Shares in an "offshore transaction" as defined in and pursuant Regulation S under the Securities Act;

9. it acknowledges that it is acquiring the Placing Shares for its own account or for one or more accounts for which, in each case, it exercises sole investment discretion, for investment purposes and not with a view to any distribution or for resale in connection with, the distribution thereof in whole or in part, in the United States and that it has full power to make the acknowledgements, representations and agreements herein on behalf of each such account;

10. it acknowledges that the Placing Shares have not been and will not be registered under the Securities Act or with any state or other jurisdiction of the United States, nor approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other United States regulatory authority, and agrees not to reoffer, resell, pledge or otherwise transfer the Placing Shares except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act;

11. unless otherwise specifically agreed in writing with Liberum Capital, it represents and warrants that neither it nor the beneficial owner of such Placing Shares will be a resident of the United States, Australia, Canada, Japan or the Republic of South Africa;

12. it acknowledges that the Placing Shares have not been and will not be registered under the securities legislation of the United States, Australia, Canada, Japan or the Republic of South Africa and, subject to certain exceptions, may not be offered, sold, taken up, renounced or delivered or transferred, directly or indirectly, within those jurisdictions;

13. it represents and warrants that the issue to it, or the person specified by it for registration as holder, of Placing Shares will not give rise to a liability under any of sections 67, 70, 93 or 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 depositary receipts or to transfer Placing Shares into a clearance system;

14. it represents and warrants that: (i) 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 (as amended), the Terrorism Act 2006 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and (ii) it is not a person: (a) with whom transactions are prohibited under the Foreign Corrupt Practices Act of 1977 or any economic sanction programmes administered by, or regulations promulgated by, the Office of Foreign Assets Control of the U.S. Department of the Treasury; (b) named on the Consolidated List of Financial Sanctions Targets maintained by HM Treasury of the United Kingdom; or (c) subject to financial sanctions imposed pursuant to a regulation of the European Union or a regulation adopted by the United Nations (together, the Regulations); and, if making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations and, if making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations and has obtained all governmental and other consents (if any) which may be required for the purpose of, or as a consequence of, such purchase, and it will provide promptly to Liberum Capital such evidence, if any, as to the identity or location or legal status of any person which Liberum Capital may request from it in connection with the Placing (for the purpose of complying with such Regulations or ascertaining the nationality of any person or the jurisdiction(s) to which any person is subject or otherwise) in the form and manner requested by Liberum Capital on the basis that any failure by it to do so may result in the number of Placing Shares that are to be purchased by it or at its direction pursuant to the Placing being reduced to such number, or to nil, as Liberum Capital may decide at its sole discretion;

15. it represents and warrants that, to the extent it has received any inside information (for the purposes of the Market Abuse Regulation (EU Regulation No. 596/2014 ("MAR")) and section 56 of the Criminal Justice Act 1993) in relation to the Company and its securities, it has not: (a) dealt (or attempted to deal) in the securities of the Company; (b) encouraged, recommended or induced another person to deal in the securities of the Company; or (c) unlawfully disclosed inside information to any person, prior to the information being made publicly available;

16. it acknowledges that it has consented to receive information in respect of securities of the Company and other price-affected securities (as defined in FSMA) which makes it an "insider" for the purposes of Part V of FSMA and MAR, and it agrees not to deal in any securities of the Company until such time as the inside information (as defined in FSMA) of which it has been made aware has been made public for purposes of FSMA or it has been notified by Liberum Capital or the Company that the proposed Placing will not proceed and any unpublished price sensitive information of which it is aware has been publicly announced, and, other than in respect of its knowledge of the proposed Placing, it has neither received nor relied on any confidential price sensitive information concerning the Company or the Placing Shares;

17. if a financial intermediary, as that term is used in Article 5(1) of the Prospectus Regulation, it represents and warrants that the Placing Shares purchased 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 a Member State of the European Economic Area other than Qualified Investors, or in circumstances in which the prior consent of Liberum Capital has been given to the offer or resale;

18. it represents and warrants that it has not offered or sold and, prior to the expiry of a period of six (6) months from Admission, 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 Financial Services and Markets Act 2000 (FSMA);

19. it represents and warrants that it has not offered or sold and will not offer or sell any Placing Shares to persons in the European Economic Area prior to Admission 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 in and which will not result in an offer to the public in any member state of the European Economic Area within the meaning of the Prospectus Regulation;

20. it represents and warrants that 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 the FSMA) relating to the Placing Shares in circumstances which do not require the approval of the communication by an authorised person under section 21(1) of the FSMA;

21. it represents and warrants that 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;

22. if in a Member State of the European Economic Area, unless otherwise specifically agreed with Liberum Capital in writing, it represents and warrants that it is a Qualified Investor within the meaning of the Prospectus Regulation;

23. if in the United Kingdom, it represents and warrants that it is (a) a person who is (i) an investment professional within the meaning of Article 19(5) of the Order or who falls within Article 49(2)(A) to (D) ("High Net Worth Companies, Unincorporated Associations, etc.") of the Order and (ii) a "qualified investor" as defined in section 86 of FSMA or (b) a person to whom this Announcement may otherwise be lawfully communicated;

24. it represents and warrants that 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 and taken any other necessary actions 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 this Announcement) and will honour such obligations;

25. where it is acquiring Placing Shares for one or more managed accounts, it represents and warrants that it is authorised in writing by each managed account: (a) to acquire the Placing Shares for each managed account; (b) to make on its behalf the representations, warranties, acknowledgements, undertakings and agreements in this Appendix and the Announcement of which it forms part; and (c) to receive on its behalf any investment letter relating to the Placing in the form provided to you by Liberum Capital;

26. it undertakes that it (and any person acting on its behalf) will make payment for the Placing Shares allocated to it in accordance with this Announcement on the due time and date set out herein, failing which the relevant Placing Shares may be placed with other subscribers or sold as Liberum Capital may in its sole discretion determine and without liability to such Placee and it will remain liable for any shortfall below the net proceeds of such sale and the placing proceeds of such Placing Shares and may be required to bear the liability for any stamp duty or stamp duty reserve tax or security transfer tax (together with any interest or penalties due pursuant to or referred to in these terms and conditions) which may arise upon the placing or sale of such Placee's Placing Shares on its behalf;

27. it acknowledges that none of Liberum Capital, its affiliates, or any person acting on behalf of any of them, is making any recommendations to it, advising it regarding the suitability of any transactions it may enter into in connection with the Placing and that participation in the Placing is on the basis that it is not and will not be treated for these purposes as a client of Liberum Capital and that Liberum Capital has no duties or responsibilities to it for providing the protections afforded to its clients or customers or for providing advice in relation to the Placing nor in respect of any representations, warranties, undertakings or indemnities contained in the Placing and Open Offer Agreement nor for the exercise or performance of any of its rights and obligations thereunder including any rights to waive or vary any conditions or exercise any termination right;

28. it undertakes that the person whom it specifies for registration as the holder of the Placing Shares will be (i) itself or (ii) its nominee, as the case may be. Neither Liberum Capital nor the Company will be responsible for any liability to stamp duty or stamp duty reserve tax resulting from a failure to observe this requirement. Each Placee and any person acting on behalf of such Placee agrees to participate in the Placing and it agrees to indemnify the Company, Liberum Capital in respect of the same on the basis that the Placing Shares will be allotted to the CREST stock account of Liberum Capital who will hold them as nominee on behalf of such Placee until settlement in accordance with its standing settlement instructions;

29. it acknowledges that these terms and conditions and 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 behalf of itself and on behalf of any person 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 the Company or Liberum Capital 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;

30. it acknowledges that time shall be of the essence as regards to obligations pursuant to this Appendix to the Announcement;

31. it agrees it will be bound by the terms of the Company's Articles of Association;

32. it agrees that the Company, Liberum Capital, and their respective affiliates and others will rely upon the truth and accuracy of the foregoing representations, warranties, acknowledgements and undertakings which are given to Liberum Capital on their own behalf and on behalf of the Company and are irrevocable and are irrevocably authorised to produce this Announcement or a copy thereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby;

33. it agrees to indemnify on an after-tax basis and hold the Company, Liberum Capital and their respective affiliates harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings in this Appendix and further agrees that the provisions of this Appendix shall survive after completion of the Placing;

34. it acknowledges that no action has been or will be taken by any of the Company, Liberum Capital or any person acting on behalf of the Company or Liberum Capital that would, or is intended to, permit a public offer of the Placing Shares in any country or jurisdiction where any such action for that purpose is required;

35. it acknowledges that it is an institution that has knowledge and experience in financial, business and international investment matters as is required to evaluate the merits and risks of subscribing for the Placing Shares. It further acknowledges that it is experienced in investing in securities of this nature and is aware that it may be required to bear, and it, and any accounts for which it may be acting, are able to bear, the economic risk of, and is able to sustain, a complete loss in connection with the Placing. It has relied upon its own examination and due diligence of the Company and its associates taken as a whole, and the terms of the Placing, including the merits and risks involved; and

36. it acknowledges that its commitment to subscribe for Placing Shares on the terms set out herein and in the trade confirmation or contract note will continue notwithstanding any amendment that may in future be made to the terms 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 conduct of the Placing.

The representations, warranties, acknowledgments and undertakings contained in this Appendix are given to Liberum Capital for itself and on behalf of the Company and are irrevocable.

The agreement to settle a Placee's subscription (and/or the subscription of a person for whom such Placee is contracting as agent) free of stamp duty and stamp duty reserve tax depends on the settlement relating only to a subscription by it and/or such person direct from the Company for the Placing Shares in question. Such agreement assumes that the Placing Shares are not being subscribed for in connection with arrangements to issue depositary receipts or to transfer the Placing Shares into a clearance service. If there are any such arrangements, or the settlement relates to any other subsequent dealing in the Placing Shares, stamp duty or stamp duty reserve tax may be payable, for which neither the Company nor Liberum Capital will be responsible, and the Placee to whom (or on behalf of whom, or in respect of the person for whom it is participating in the Placing as an agent or nominee) the allocation, allotment, issue or delivery of Placing Shares has given rise to such UK stamp duty or stamp duty reserve tax undertakes to pay such UK stamp duty or stamp duty reserve tax forthwith and to indemnify on an after-tax basis and to hold harmless the Company and Liberum Capital in the event that any of the Company and/or Liberum Capital has incurred any such liability to UK stamp duty or stamp duty reserve tax. If this is the case, each Placee should seek its own advice and notify Liberum Capital accordingly.

In addition, Placees should note that they will be liable for any 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 subscription by them of any Placing Shares or the agreement by them to subscribe for any Placing Shares.

Each Placee, and any person acting on behalf of the Placee, acknowledges that Liberum Capital does not owe any fiduciary or other duties to any Placee in respect of any representations, warranties, undertakings or indemnities in the Placing and Open Offer Agreement.

Each Placee and any person acting on behalf of the Placee acknowledges and agrees that Liberum Capital or any of its affiliates may, at their absolute discretion, agree to become a Placee in respect of some or all of the Placing Shares.

When a Placee or person acting on behalf of the Placee is dealing with Liberum Capital, any money held in an account with Liberum Capital 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 Liberum Capital's money in accordance with the client money rules and will be used by Liberum Capital in the course of their own business and the Placee will rank only as a general creditor of Liberum Capital.

All times and dates in this Announcement may be subject to amendment. Liberum Capital shall notify the Placees and any person acting on behalf of the Placees of any changes.

No statement in this Announcement is intended to be a profit forecast, and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

The Placing Shares to be issued or sold pursuant to the Placing will not be admitted to trading on any stock exchange other than the London Stock Exchange.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement.

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