Investment in Medica SpA

3 November 2021

CIP MERCHANT CAPITAL LIMITED

("CIP" or the "Company")

Investment in Medica SpA

CIP is pleased to announce its investment in Medica SpA ("Medica"), a leading manufacturer of medical and water purification devices. Medica has yesterday announced the initial public offering of its ordinary shares on AIM Italia, a market regulated by Borsa Italiana, in conjunction with an equity fundraising to raise, in aggregate, €22.9 (the "IPO Fundraise"), against a total demand of €174 million (7.6 times the offer). CIP has subscribed for 25,000 ordinary shares in Medica pursuant to the IPO Fundraise for a total consideration of €0.7 million.

In its financial year ended 31 December 2020, Medica achieved revenue of approximately €44.1 million (and approximately €23.3 million in the first half of 2021), EBITDA of approximately €9.5 million (and approximately €5.3 million in the first half of 2021) and Net Income of approximately €3.8 million (and approximately €3.1 million for the first half of 2021). As at 31 December 2020, Medica had net debt of approximately €3.1 million (approximately €7.8 million as at 30 June 2021) and net assets of approximately €21.5 million.

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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.