Sale of Klarna Stake and Compulsory Redemption

28 September 2026

Chrysalis Investments Limited ("Chrysalis" or the "Company")

Portfolio Update

and

Announcement of Completion of Sale of Klarna Stake and Compulsory Capital Redemption

Portfolio Update and First Compulsory Capital Redemption

Chrysalis Investments Limited has completed the sale of its entire remaining shareholding in Klarna Group plc ("Klarna") for aggregate cash consideration of approximately £34 million (the "Disposal"), having already disposed of £6 million of shares in July 2026, as previously announced.

Having completed the Disposal, the Board of Chrysalis Investments Limited (the "Board") is pleased to announce a compulsory capital redemption of approximately £25 million (the "Capital Redemption"), to be returned to Shareholders on a pro rata basis in proportion to their existing holdings of Ordinary Shares. The Capital Redemption will be at a price of 127.0 pence per Ordinary Share, based on an adjustment to the NAV as at 30 June 2026.

The balance of net proceeds, of approximately £9 million, will be retained by the Company to provide a prudent operating capital buffer and flexibility for potential follow-on investment into existing portfolio companies.

The Capital Redemption is consistent with the Company's stated policy of returning capital generated from portfolio realisations to Shareholders in an efficient and timely manner.

Further details of the mechanics, timetable and record date for the Capital Redemption, including the relevant Shareholder communications, are set out below.

Liquidity and Follow on Investment Capital

Following completion of the Klarna Disposal and Capital Redemption, the Company expects to have  cash and cash equivalent resources amounting to approximately £19 million. In accordance with the Company's investment policy, the Company will maintain a prudent operating capital buffer as well as capital to support existing portfolio assets, including follow-on investment where appropriate, and will return capital to Shareholders in excess of that amount.

Key Details of the Redemption

The Capital Redemption will be carried out on a compulsory pro-rata basis across all Shareholders on the Redemption Record Date. All Ordinary Shares will be treated equally, and no Shareholder action is required.

The Redemption Price has been set by way of reference to the Company's last published net asset value ('NAV") per Ordinary Share at 30 June 2026, adjusted for the actual proceeds received on the sale of Klarna. None of the Company's other assets have been revalued as part of this process.

Fractions of Ordinary Shares will not be redeemed and, accordingly, the number of Ordinary Shares redeemed in respect of each Shareholder will be rounded down to the nearest whole number.

The aggregate amount to be returned to Shareholders pursuant to this first compulsory redemption is equivalent to approximately 4.1% of total issued Ordinary Shares.

ISIN arrangements

In connection with the Capital Redemption, the existing ISIN for the Ordinary Shares will expire on 30 September 2026, being the Ex‑Date. The new ISIN, GG00C0GC7Q38, representing the remaining Ordinary Shares in issue following the Capital Redemption will be enabled on the same date. All relevant transformations will be processed automatically through CREST.

Settlement and payment

The Capital Redemption will be implemented through the redeemable share mechanism described in the Articles of Incorporation. Cash payments due to Shareholders will be funded to the Company's registrar, Computershare, on or before 6 October 2026 and will be paid via CREST or, in the case of certificated holdings, by cheque. The latest payment date is expected to be 9 October 2026.

Further information

The Board will continue to assess the timing and size of future redemptions as additional cash becomes available, having regard to the Company's ongoing obligations and solvency requirements.

 LEI: 213800F9SQ753JQHSW24