Mercia Asset Regulatory News (MERC)

Mercia Asset Management PLC

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

Mercia announces new direct investment - Forensic Analytics

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£940million of assets under management, is pleased to announce that it has completed a £1.8million direct investment into a new portfolio company Forensic Analytics Limited ("Forensic Analytics") alongside a £2.7million investment by the Mercia managed Northern VCTs.

Following this investment, Mercia holds an 8.9% fully diluted direct equity stake in Forensic Analytics, with the Northern VCTs holding a further 13.9% fully diluted equity stake.

Launched in 2013, Forensic Analytics is a leading provider of innovative software solutions to Government and law enforcement agencies. It is an approved supplier to 95% of police forces in the UK, as well as other national and international agencies, to deliver digital forensic expertise that transforms the speed and efficiency of investigations, live cases, and prosecutions. Forensic Analytics was awarded the Queen's Award for Enterprise in the Innovation category in 2021.

This combined investment will enable Forensic Analytics to continue to rapidly scale, including further investing into its innovative cloud-based software platform and expanding its sales internationally.

Mark Payton, Chief Executive Officer of Mercia, commented: "Forensic Analytics is yet another excellent example of the innovation and entrepreneurship found in the UK; this investment demonstrates our ability to provide flexible funding solutions to such businesses, while also supporting our efforts to further build on our diversified direct investment portfolio. As we continue with our vision to be the first-choice investor for exciting regional businesses at all stages of their development, we look forward to working closely with Forensic Analytics as it further scales and builds on its success to date."

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About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.

Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".