Client Fundraise Completed

6 September 2021

Marechale Capital plc

("Marechale" or the "Company")

Completed Fundraise for UK Based Lithium Exploration Client

Marechale Capital Plc (AIM: MAC), an established corporate finance firm providing strategic, M&A and advisory services to a range of growth companies, is pleased to announce that it has completed a transaction with the lithium exploration and development company, Weardale Lithium Ltd ('WLL'), in which Marechale has an 8.7 per cent shareholding.

In connection with its role in the transaction, Marechale subscribed for founder shares at nominal value. Based on the value of the recently completed fundraising transaction for WLL, Marechale Capital's shareholding in WLL is valued at £1.5 million, excluding additional undated warrants which were awarded as part of its transaction fees for advising, and raising funds for, the company. Additionally, Marechale has secured the right to be awarded further warrants over WLL shares for any involvement in future fundraising rounds. Mark Warde-Norbury (Chairman of Marechale) has joined the board of WLL as a non-executive director.

WLL is a lithium exploration and development business based in the Weardale Valley, County Durham in the north of England. According to the Climate Change Committee, 46 per cent. of all cars on the road will need to be zero-emission vehicles by 2030 in order to meet the UK Government's plan to cut carbon dioxide emissions by 68 per cent. Lithium is a key component in hybrid and electric vehicle batteries, making it a sought-after commodity. With the rise in electric vehicle manufacturing, lithium producers anticipate  increasing demand for years to come. Marechale's holding in WLL provides its shareholders with the opportunity to invest in what is expected to be one of the first lithium exploration and development companies in the north of England.

This transaction is an example of the most recent equity investment in a client venture, and is over and above the balance sheet increase recently announced in the Company's annual results. The majority of Marechale's share placing funding from earlier in the year has been invested in, or committed to, a number of these completed and ongoing transactions, taking the form of equity at attractive valuations and high yielding loans with warrants attached.

Marechale continues to maintain a healthy pipeline of new corporate finance projects, and the board believes that the accumulating and maturing warrants, equity and founder equity investments in the Marechale corporate finance portfolio of client opportunities have the potential to generate material value to shareholders in the short and long term.

Patrick Booth-Clibborn, CEO of Marechale Capital, commented: "This transaction is an exciting addition to the Marechale portfolio and bolsters our exposure to the renewable energy markets. As the UK and Europe set their sights on a carbon neutral future, the role of lithium in electric vehicles and green technologies will continue to grow in importance and we are delighted to have assisted Weardale Lithium Limited as it starts to explore the presence of lithium in the north of England.

"As highlighted in our recent results, Marechale is strengthening its balance sheet and we have a healthy pipeline of new corporate finance projects ahead of us. We are excited by the potential upside for a number of our corporate finance clients where we have founder equity and warrants."

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This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Marechale Capital

Marechale is an established corporate finance firm providing strategic, M&A and advisory services to a range of growth companies, historically primarily in the hospitality and renewable energy sectors in the UK and Europe. Marechale also finances earlier stage and growth capital companies across other sectors with business and funding opportunities coming from its family office, private investor and private equity relationships.