First Day of Dealings on AIM

5 February 2025

RC FORNAX PLC

("RC Fornax" or the "Company")

FIRST DAY OF DEALINGS ON AIM AND COMPLETION OF FUNDRAISING

RC Fornax plc (AIM:RCFX), the UK-based, highly accredited engineering consultancy providing high-impact work package solutions for critical military platforms, is pleased to announce that the admission of its ordinary shares of 0.25 pence each ("Ordinary Shares") to trading on AIM, a market operated by the London Stock Exchange, will take place today ("Admission").

Admission follows the successful completion of a fundraising of £6.15 million (before expenses) through a placing of new and existing Ordinary Shares with certain institutional and other investors (the "Placing").

Dealings in RC Fornax's Ordinary Shares on AIM will commence at 08:00 a.m. today under the TIDM "RCFX" and ISIN code GB00BTTQ2F04.

RC Fornax Highlights

· Comprehensive Defence Solutions for Critical Platforms: RC Fornax defines and executes engineering design projects under statements of work ("SoW"). The Company specialises in supporting critical military platforms.

· Veteran-Founded, UK-Focused Excellence: RC Fornax is a proud, veteran-founded small-medium enterprise (SME) primarily focussed on supporting the UK defence industry.

· Transforming Delivery with Outcome-Driven SoW: At the heart of RC Fornax's solutions is its ability to support customers in switching from traditional labour-based contracts into fully managed outcome-based services under SoW.

· A rapid growth, market-disruptive, solutions provider in the defence sector: The Company is profitable, having exhibited significant growth over the past four years, since inception. RC Fornax has grown revenues by 100% CAGR to FY24 and generated aggregate EBITDA of over £1.9 million.

· Supporting the UK Ministry of Defence ("MoD") Targets with Bespoke Solutions: RC Fornax has the ability to support the MoD's overarching commitments to maximise the integration of SMEs and shorten supply chains. The Board believes that positioning itself as an SME integrator will enable the Company to deliver higher value projects to customers and to contract directly with the MoD.

· IR35 Compliance and Managed Services: Leveraging a combination of internal knowledge and strategic partnerships, the Company addresses IR35 requirements effectively - a critical step which can be overlooked by other firms that lack the necessary insight or capacity to manage these regulatory intricacies. This enables both the client and project team to remain focused on project objectives.

· Trusted by Leading Defence Primes, Positioned for Continued Growth: RC Fornax has developed a blue chip customer base that has long term contractual/framework relationships and repeat business. Since inception, RC Fornax has engaged directly as a preferred supplier with 10 well-recognised blue chip defence businesses. The Company has won 22 new mandates since 1 September 2024 covering a range of critical defence projects with existing clients.

· Expansion into New Markets and Industries: While the defence industry customer base was the original target market, the Company expects to see its innovative and efficient business proposition adapt and grow in adjacent markets, resulting in greater efficiency and cost savings for more customers.

· The Future of Defence - Innovation and Technological Superiority: RC Fornax is committed to becoming a driving force behind the future of the UK defence sector. The Company intends to utilise approximately £2.2 million of the Placing's net proceeds for the development of an advanced artificial intelligence ("AI") tool, known as the Fornax Automatic Statement of work Generator (Project FAS-G), designed to streamline the creation of SoW.

Placing Highlights

· Successful fundraising included the placing of 15,846,153 new Ordinary Shares ("Placing Shares"), raising gross proceeds of approximately £5.15 million for the Company, and 3,078,457 existing Ordinary Shares ("Sale Shares"), raising gross proceeds of approximately £1.00 million for certain selling shareholders, in each case at a price of 32.50 pence (the "Issue Price") per Ordinary Share.

· At the Issue Price, the Company will have a market capitalisation on Admission of approximately £18.15 million.

· The net proceeds of the Placing receivable by the Company (together with the Company's existing funds) are expected to be used primarily to:

o  accelerate the expansion of the business;

o  provide additional product development capabilities for the Company's planned AI tool, Project FAS-G;

o  expand the Company's sales and marketing teams;

o  increase engineering and training capabilities, including developing educational pathways and specialist capability units; and

o  for general working capital purposes.

· Strand Hanson Limited acted as nominated and financial adviser to the Company in connection with Admission.

· Cavendish Capital Markets Limited acted as broker in connection with the Placing and is acting as sole broker from Admission.

Paul Reeves, CEO of RC Fornax, stated: "I am delighted to announce our first day of dealings on AIM. After serving in the Royal Air Force, my fellow veteran, Daniel Clark, and I supported several tier 1 defence contractors through consultancy roles and, during this time, identified some common challenges. Together, we co-founded RC Fornax in 2020, with the aim of tackling these challenges and ultimately assisting in improving the national security of the UK. We believe that Admission to AIM will help accelerate the growth of the business as we expand our role in supporting the UK defence sector.

"It is of great importance that defence programmes are delivered on time, within budget, and to the highest standards of quality and compliance. RC Fornax is proud to work closely with its customers to help them transition from traditional labour-based contracts to fully managed, outcome-focused services, ensuring projects are delivered with greater efficiency and accountability.

"We take immense pride in contributing to critical programmes that strengthen the operational capabilities of the UK. The admission to AIM, alongside the proceeds of the Placing, will allow us to accelerate our growth strategy by investing in transformative technologies, such as our AI-driven Project FAS-G, which will enable faster and more precise project delivery. It also positions us to expand into new sectors, leveraging our expertise to deliver high-impact solutions across a broader range of industries.

"Admission to AIM marks the beginning of a new chapter in our journey and I would like to thank our team of advisers who have worked tirelessly on the process. I would also like to thank our existing partners and customers; we appreciate your continued support. Finally, I am pleased to welcome our new investors to RC Fornax, and I look forward to you sharing in our success during the next part of our journey."

Admission Document

The Admission Document, which contains further information concerning the Placing and Admission, is available to download from the Company's website at: www.rcfornax.co.uk

For additional information, please contact:

About RC Fornax

RC Fornax is an established, highly accredited engineering consultancy, formed to define and execute engineering design projects under Statements of Work (SoW), enhancing and augmenting customer capabilities while improving project efficiency. A rapid growth, market-disruptive, solutions provider in the defence sector, RC Fornax was founded by two ex-RAF engineers who spotted deficiencies in the existing outsourced contract defence market. By leveraging this experience, RC Fornax aims to become a challenger to the industry and establish itself to be a best-in-class provider of services to the UK defence sector, by offering a wider range of expertise and capabilities, with an initial focus on systems, software and hardware engineering.

By utilising a well-established associate community approach to augment core capabilities, RC Fornax defines and executes engineering design projects under Statements of Work. Services are provided with the aim of supporting the whole product lifecycle with expertise of systems, software, and hardware engineering of high complexity and high integrity platforms.