Exercise of option re Happy Friends Investment

28 February 2022

CIP MERCHANT CAPITAL LIMITED

("CIP" or the "Company")

Exercise of option re Happy Friends Investment

Further to the Company's announcement of 1 March 2021, CIP announces that it has exercised its option (the "Option") to acquire a further equity interest of 41.6 per cent. in the existing issued share capital of 7Star S.r.l. ("7Star" or "Happy Friends"), a private Italian incorporated company founded in December 2016 which owns and/or operates a chain of three veterinary hospitals under the brand name 'Happy Friends'. The exercise price of the Option, which was scheduled to expire on 26 February 2022, was a nominal sum of €5.

Following the Option exercise, CIP now holds an economic interest of 65.4 per cent. and a voting interest of 90.6 per cent. in Happy Friends.

CIP intends to continue to treat Happy Friends as a non-consolidated investee company, both in terms of its day-to-day operational management and for accounting purposes, such that it will continue to hold the investment at fair value utilising the investment entity exemption available under IFRS10.

Additional information on 7Star

7Star currently owns and/or operates three veterinary hospitals, under the brand name 'Happy Friends' in Lombardy, Northern Italy.

For its financial year ended 31 December 2020, 7Star achieved revenues of €1.0 million and a loss before tax of €1.1 million, and, as at 31 December 2020, had total assets of €5.7 million.

As announced by the Company on 14 February 2022, as at 4 February 2022 the unaudited carrying value for CIP's unquoted investment in Happy Friends was approximately £1.89m, which remains unaltered.

For further information, please contact:

 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.