Kingswood H. Regulatory News (KWG)

17 March 2020

KINGSWOOD HOLDINGS LIMITED

("KWG", the "Company" or the "Group")

Issue of Convertible Preference Shares

Continuation of Kingswood Growth Strategy

Kingswood Holdings Limited (AIM: KWG), the integrated wealth management group, announces that it has issued a total of 483,388 convertible preference shares (the "New Convertible Preference Shares"), under the terms of the convertible preference share subscription agreement announced on 12 September 2019, to HSQ INVESTMENT LIMITED ("Pollen Street"), a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital Limited.

As announced on 1 February 2019, the Company funded the acquisition of Thomas & Co Financial Services ("Thomas & Co") with an initial payment on completion with three conditional deferred consideration payments due in 2020, 2021 and 2022. The first such deferred consideration payment is due to be paid in March 2020.

Accordingly, New Convertible Preference Shares have now been issued to satisfy the payment of the first deferred consideration payment.

The New Convertible Preference Shares represent the fourth tranche of irredeemable convertible preference shares issued pursuant to the Pollen Street subscription agreement and the total number of irredeemable Convertible Preference Shares held by Pollen Street has increased to 9,711,043 shares at an issue price of £1 each.

Gary Wilder, Group CEO at Kingswood commented: "The acquisition of the book of Thomas & Co in February 2019 allowed Kingswood to establish a footprint in the Oxford area which we consider to be a key hub for Kingswood. We are pleased with the progress that Joe, Graeme and the team have made in the first year and we anticipate that all of the targets set for the business will be achieved over the course of the next two years. The business is now fully integrated under the Kingswood brand and the central investment propositions consolidated into one, streamlined product offering.

Our focus continues to be to seek accretive opportunities in the UK IFA market and the IBD/RIA market in the US. We have a strong pipeline of qualifying transactions, and are in advanced discussions with a selection of transactions across the UK that, if completed, will significantly add to our adviser network and expand our UK footprint across the north of England, into Scotland and around the Greater London area."

ENDS

For further details, please contact:

About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) integrated wealth management group, with around 5,500 active clients and c. £2.5 billion of Assets under Management and Advice. It has a growing network of offices in the UK including Abingdon, Beverley, Derby, Lincoln, London, Maidstone, Sheffield and Worcester, and offices in Johannesburg, South Africa and New York, USA.

Kingswood offers a range of trusted investment solutions to its clients, which range from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. Kingswood is focused on becoming a leading player in the wealth management market through targeted acquisitions in the UK, with the ultimate goal of creating a global business through strategic partnerships.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014