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7 April 2022

Graft Polymer (UK) Plc

("Graft Polymer", the "Company", and together with its subsidiaries, the "Group")

Pre-payment for equipment

Graft Polymer (UK) Plc (LSE: GPL), a business focused on the development of polymer modification, biological supplements and drug delivery systems, is pleased to announce it has made significant progress on equipment purchases that are tailored to the Company's requirements.

Graft Polymer has provided pre-payments to its relevant suppliers and this progress is a significant step forwards and in line with the goals established in the IPO prospectus. Given the recent increase in steel prices, the Company is pleased to notify a lower-than-expected price for the equipment was secured, which will double Graft Polymer's compounding capacities. The equipment includes:

·      A twin screw specially designed and tailored to our current reactive extrusion line with sophisticated dosation and underwater pelletising systems;

·      Graft thermo-sensitive polymers and porous carriers-based masterbatches within two multifunctional vacuum reactors/dryers;

·      Vacuum infra-red dryer tunnel for porous granules;

·      Modify complex ozone/plasma, and graft fluoropolymer powders and alloys; and

·      Speciality  nano-emulsion complex for Pharma and Nutrition bio-supplements via a complex nano emulsification technique.

These items will enable the Company to double its compounding capacity. Intensive work has now begun in the existing premises to prepare them for new equipment deployment in the next three-month period. Operations remain unaffected by the transition to better quality equipment.

Victor Bolduev, chief executive officer of Graft Polymer, said:

"The market demand for Graft Polymer is rising and is intensifying. As a result, we have matched this demand with better quality equipment to double the compounding capacities of the Company.

"Graft Polymer's ambitious plans for our research and development facility in Slovenia requires capacity expansion in order to strengthen our resource to support activity  in the most lucrative sectors. Graft Polymer is well-equipped to react to market demand and we look forward to implementing our strategy for 2022-2023 with our new state-of-the-art equipment."

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For more information, please visit https://www.graftpolymer.com or contact:

About Graft Polymer

Graft Polymer is a UK incorporated holding company with an innovative research and manufacturing facility, based in Slovenia. The core business of the Group comprises polymer modification and drug delivery systems developments. Established in 2017, the Group has already introduced more than 50 products to the market.

The Group has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing, reducing material consumption, widening the choice of feedstocks, and reducing costs.

In particular, the Group's techniques allow the combination of otherwise incompatible polymers, facilitating the creation of polymer composites engineered at a molecular level, that combine the attractive properties of different input materials. This enables customers to receive a synergism of properties in polymer composites.

The solutions and products offered by the Group are designed to improve performance, reduce raw materials consumption, and enhance the physical characteristic values of finished products or improve or modify their chemical interaction. In the past several years, there has been increased emphasis by the industry as a whole on applications of grafted polymers, which are produced by monomers being covalently bonded and polymerised as side chains onto the main polymer chain (the backbone).

In 2020, the Group launched a new division named GraftBio to develop IP for Bio/Pharma applications. This includes a drug delivery system to support and provide solutions to the market, which had been heavily impacted by the COVID-19 pandemic. The GraftBio division is in the process of obtaining the HACCP certification for its production facility. The Group has developed a set of drug delivery platforms that enable it to licence its DDS platform (IP) to MGC Pharmaceuticals Limited ("MGC"; LSE: MXC) in relation to MGC's CimetrA™ and CannEpil-IL™ products. The Group expects to receive royalty payments resulting from the sale by MGC of CimetrA™ and CannEpil-IL™ products.