Early Equity Plc - Acquisition and Issue of Equity

Early Equity PLC

(“Early Equity” or “the Company”)

Acquisition and Issue of Equity

Early Equity (AQSE: EEQP)  is pleased to announce that it has acquired the entire issued ordinary A share capital of Farina Investments (UK) Limited (“Farina”), representing 100% of its voting shares.

Farina is a company which provides services to the insolvency industry. Farina is typically approached by financial services companies to take out or subrogate the position of a bank or other lender to act as qualifying charge holder, which often results in the acquisition or disposal of distressed assets. Farina has also been involved in raising funds sometimes through mainstream channels but more often through niche boutique lenders.

The primary strategic rationale for the acquisition is that Farina holds 146,062 ordinary shares in Lotto Studios Limited (“Lotto”), a company that Early Equity already holds 17,606 ordinary shares. On the 30 March 2021, Early Equity announced the appointment of Jonathan Symonds to the board who is also a director of Lotto Studios Limited. Following this acquisition, the Company will hold approximately 20% of the issued share capital of Lotto.

In addition, Farina holds 8 million shares in Pure Sea Nutrients, Inc (approximately 10% of it is current share capital) a life science business that the Company already has a working relationship with.

Farina’s other assets include shares in UK and US quoted companies and at 31 July 2020, its last year end, it had gross assets of £3.3M and retained earnings of £207,124.

The purchase price of £1.9M has been funded by the issue of 380,000,000 new ordinary shares of £0.001 each in the capital of the Company to the at a value of £0.005 per share.

Tracy Davy is a director of the Company and of Farina and as a result the acquisition is a related party transaction in accordance with Rule 4.6 of the AQSE Growth Market Access Rulebook.

The Company is also pleased to announce that it has raised £90,000 by way of a subscription for 18,000,000 new ordinary shares of 0.1p at a price of 0.5p per share (“the Subscription”). The proceeds of the Subscription will be used to provide the Company with additional working capital.

The Company incurred expenses in connection with the Subscription of £4,500 which have been settled by the issue of 900,000 new ordinary shares of 0.1p.

As a result, the Company has issued a total of 398,900,000 new ordinary shares and application will be made for them to be admitted to trading on AQSE, which is expected to be on or around 23^rd May 2021.

The new ordinary shares will rank pari passu with the existing ordinary shares of the Company.  Following the issue of the new ordinary shares, the Company’s issued share capital will comprise 1,447,648,684 ordinary shares of 0.1p (including the 51,030,000 new ordinary shares).

The above figure of 1,447,648,684 should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Jonathan Symonds (Director) commented; ‘a closer working relationship between Lotto Studios and Early Equity has been something we have been aspiring to and this deal has concluded concurrently with the launch of our first social casino game in partnership with ITV Studios and is the world’s No.1 entertainment show, The Voice. We will continue to develop the relationship between the two companies.’

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).The directors of Early Equity Plc accept responsibility for this announcement.

Enquiries:

Early Equity Plc
Greg Collier
Tel: [phone]

Novum Securities Limited
AQSE Corporate Adviser
David Coffman / Lucy Bowden
Tel: [phone]