Portfolio Update

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the United Kingdom), Canada, Australia, Japan or the Republic of South Africa.

Merian Chrysalis Investment Company Limited

16 August 2019

Merian Chrysalis Investment Company Limited (the "Company")

Portfolio Update

·; Investment in Sorted Holdings Limited

·; Update on portfolio composition

Investment in Sorted Holdings Limited

The Company is pleased to announce an investment of £10 million as part of a £15 million Series B funding round conducted by Sorted Holdings Limited (Sorted), alongside other investors in the round including Praetura Ventures and NVM Private Equity.

Sorted is a Manchester-based, global Software as a Service (SaaS) company that has developed a Delivery Management Platform which allows retailers (both digital and physical) to effectively manage their delivery and returns proposition. This enables retailers to increase conversion rates, reduce abandoned baskets and maintain customer loyalty. Sorted has developed three highly innovative products:

·; SortedHERO, an application programming interface solution allowing retailers to display real-time delivery options at checkout;

·; SortedPRO, a ground-breaking delivery management platform for carrier and shipping management; and

·; SortedREACT, a powerful AI driven tracking platform that aggregates carrier and delivery communications post purchase.

Sorted is one of the UK's fastest growing and most disruptive SaaS companies. It has invested over £20 million to date in its technology and provides global retailers with a best-in-class solution. Sorted now operates in twelve countries and works with a number of leading companies, including: ASOS, Lush, N Brown, Wincanton and Clipper Logistics.

Richard Watts, portfolio manager, comments:

"The delivery management sector is ripe for disruption and we believe Sorted has emerged as the only credible, global challenger to the current market leader. We are excited to provide David and the team with the growth capital required to continue developing truly innovative technologies and expand internationally.''

Update on portfolio composition

As a result of its investment in Sorted, the Company's capital is approximately 78 per cent invested.

The Company continues to explore a range of further opportunities and will update the market as appropriate.

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.