CLS Holdings plc ("CLS", the "Company" or the "Group")

CLS announces the sale of the Student accommodation at Spring Mews ("Spring Mews Student")

CLS announces that it has unconditionally exchanged on the sale of Spring Mews Student in Vauxhall, London to Rosethorn Capital Partners and Barings for £101.1 million net cash consideration. The purchase price is in-line with the 31 December 2024 valuation and 8.1% ahead of the 2023 year-end valuation. The sale will be completed in May 2025 when the remaining consideration will be paid.

In 2014, CLS constructed its student accommodation asset as part of the mixed-use Spring Mews development, comprising student, hotel and, office properties. Since the early years, Spring Mews Student has always been fully occupied (apart from during the Covid pandemic) and in 2024, following a minor refurbishment, it achieved record profits.

The sale has also provided an opportunity to address upcoming loan maturities for New Printing House Square in Holborn and Artesian in Aldgate, which were due in June and December 2025, with the properties being substituted for Spring Mews Student into an existing portfolio loan with Aviva Investors. Consequently, on completion of the Spring Mews sale, the disposal proceeds will be used to repay £85.8 million of debt for the two properties being substituted into the Aviva Investors portfolio. The restructuring of the financing allows CLS to repay more expensive debt whilst retaining the Aviva Investors portfolio loan largely intact, which is fixed at 2.54% and expires in 2030 and 2032. The sale of Spring Mews Student will therefore be marginally earnings enhancing. This will also reduce CLS' year-end cost of debt by over 20 basis points and LTV from 50.7% to 47.9% on a pro forma basis.

Fredrik Widlund, Chief Executive of CLS, commented:

"Spring Mews Student has been a very successful development for CLS, and we are pleased that Rosethorn and Barings will become the owners as the scheme enters its next phase as an integral and continuous part of our Spring Mews estate in Vauxhall. The sale demonstrates CLS' ability to develop, operate and realise value through its structured, pro-active approach and, at the same time, deliver on several strategic priorities by addressing upcoming loan maturities and reducing LTV."

-ends-

For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

Panmure Liberum

Jamie Richards

David Watkins

+44 (0)20 3100 2000

Berenberg

Carl Gough

Harry Nicholas

+44 (0)20 3207 7800

Edelman Smithfield (Financial PR)

Alex Simmons +44 7970 174 353

Hastings Tarrant +44 7813 407 665

cls@edelmansmithfield.com

Forward-looking statements

This document may contain certain 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of CLS speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except as required by its legal or statutory obligations, the Company does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Information contained in this document relating to the Company or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.