Issue of Equity and Trading Update

21 September 2026

MedPal AI plc

("MedPal", the "Company" or the "Group")

Placing to raise £5 million and Trading Update

Growth is accelerating: September revenue running at £35 million annualised, up from £28 million in August

£5 million raised at 5 pence, predominantly from existing shareholders, to fund the working capital behind that growth

MedPal AI plc (AIM: MPAL; FRA: Z1N), the AI-native digital health and pharmacy group, is pleased to announce that it has conditionally raised gross proceeds of £5 million (the "Placing") through the issue of 100,000,000 new ordinary shares of £0.0002 each (the "Placing Shares") at a price of 5.0 pence per share (the "Placing Price"). The Placing was arranged by CREST Corporate Broking ("CREST") and was predominantly taken up by existing shareholders, together with institutional and other investors.

The Company also provides an update on trading for September to date, which shows growth running faster than in August.

Highlights

•      From zero to £35 million annualised in eleven months. Based on trading from 1 to 19 September 2026, the Group's annualised revenue run rate is now over £35 million (New Health approximately £29 million, NHS prescriptions approximately £5.6 million and eMARx approximately £0.8 million), up from approximately £28 million reported for August and £8.6 million for July. Annualised figures are the monthly revenue multiplied by twelve and are not a forecast.

•      Further rapid growth in September New Health (new.co.uk), the Group's dedicated GLP-1 weight management clinic, generated revenue of over £1.5 million in the first 19 days of September from more than 12,000 orders, a daily rate approximately 35 per cent. higher than August, which was itself up over 800 per cent. on July.

•      More than 25,000 customers. New Health has acquired more than 25,000 customers since its marketing began in July 2026, up from the more than 16,000 reported on 7 September 2026.

•      Record day. On Tuesday 15 September 2026, New Health dispensed 2,000 orders and approximately £300,000 of revenue in a single day, its highest to date.

•      Customers are returning. 27 per cent. of New Health's first-time customers have already returned for a second order. Most customers joined only in the second half of August or in September and are still on their first month's medication, so the Board expects repeat orders to grow significantly as they finish it. Every reorder represents revenue requiring no acquisition cost.

•      Funding growth. Trading at current levels would be sustainable using the Company's current cash balances, but additional funds are necessary to sustain the anticipated growth trajectory of the Group. As a young company, the Group currently pays for its medication before it is delivered and subsequently receives payment from the NHS and receives rebates from GLP-1 suppliers and reimbursement of VAT from HMRC. These are clearly reliable debtors but their balance increases with every month of growth in sales, creating a working capital gap that the Placing will help to fund.  

•      Bank funding being explored. The Group has opened discussions with UK clearing banks regarding a working capital facility secured on its receivables and expects supplier credit terms to follow as its trading record lengthens. These discussions are at an early stage. If a facility is secured, the Board would expect it to reduce the need to raise further equity to fund the Group's working capital cycle as growth continues.

Trading update: September to date

New Health began trading in June 2026 and started marketing in July. Revenue was £201,203 in July and £1,828,319 in August, its first full month. In the first 19 days of September New Health generated revenue of over £1.5 million from more than 12,000 orders, a daily run rate approximately 35 per cent. ahead of August. On that basis, September is on course to be a further record month, with New Health alone annualising at approximately £29 million. New Health has now acquired more than 25,000 customers since its marketing began in July 2026, compared with the more than 16,000 reported on 7 September 2026.

Demand is broadening as well as deepening. On Tuesday 15 September 2026 New Health recorded its strongest trading day to date, with 2,000 dispensed orders and approximately £300,000 of revenue taken in a single day, and 27 per cent. of first-time customers have already placed a second order.

It should also be noted that the majority of  New Health customers joined in the second half of August or in September and are still on their first month's medication. As they finish it, the Board expects repeat orders to grow significantly, on top of new customers. Repeat orders carry no acquisition cost, so margins should widen as the customer base matures.

The Group's NHS prescription and eMARx businesses continue to trade in line with the levels reported on 7 September 2026. The Company expects to update the market on October trading in early November 2026.

Use of proceeds

The net proceeds of the Placing, approximately £4.7 million, will be applied as follows:

·      Working capital for medication stock (c.£4.0 million): funding NHS and New Health medication purchases ahead of the receipt of NHS payments, supplier rebates and VAT reclaims, so that the Group can continue to grow at the current pace.

·      Expansion of the GLP-1 line at Sarus Court (c.£0.7 million): investment in advanced automation on the Group's dedicated GLP-1 pick and pack line at its Runcorn hub, increasing capacity to 14,000 orders a day, equivalent to approximately £2 million of orders a day. The expanded line is expected to be operational by the end of October 2026.

Chief Executive Officer's commentary

Jason Drummond, Founder and Chief Executive Officer of MedPal, commented:

"From zero to £35 million of annualised revenue in eleven months, and September is running faster than August. On Tuesday last week New Health dispensed 2,000 orders in a single day, and more than a quarter of our customers are already coming back for their second order, before most of them have even finished their first. Growth this fast has to be funded, and the Placing lets us accelerate rather than pace our growth to our cash. I am very pleased with the institutional support for the company generated by CREST Corporate Broking, and I would like to thank our existing shareholders, who provided the majority of the funding, for backing us again.

"We are now in early discussions with UK banks regarding a facility against those receivables, and our aim is that in future our working capital is funded by the bank rather than by shareholders. This is only the beginning. We are seeing encouraging early repeat ordering and every reorder comes at no acquisition cost. Further, our proprietary dispensing facility, our platform and our AI take the cost out of serving them. This is what the Health OS was built for."

Details of the Placing

The Placing Price of 5 pence per Placing Share represents a discount of approximately 17 per cent. to the closing mid-market price of 6.0 pence per MedPal's ordinary Share on 18 September 2026, being the latest practicable date prior to this announcement, and a premium of approximately 43 per cent. to the price at which the Company raised £5 million in July 2026 and 100 per cent. to the price at which it raised £3 million in April 2026.

As part of CREST's engagement, CREST has been granted warrants to subscribe for 6,000,000 new ordinary shares, exercisable at the Placing Price for a period of 12 months from closing of the Placing.

Issue of Shares in lieu of cash

In addition to the Placing Shares, the Company has issued 3,000,000 new ordinary shares (the "Fee Shares") to certain advisers at a price of 5.0 pence per share, in lieu of £150,000 of cash.

Admission and Total Voting Rights

The Placing Shares and the Fee Shares (the "New Shares") will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared, made or paid after their date of issue.

Application will be made to the London Stock Exchange for the New Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the New Shares will commence at 8.00 a.m. on 24 September 2026. The Placing is conditional upon, amongst other things, Admission becoming effective.

Following Admission, the Company's issued ordinary share capital will consist of 886,249,135 ordinary shares of £0.0002 each, with one voting right per share. No ordinary shares are held in treasury. The total number of voting rights in the Company following Admission will therefore be 886,249,135, which figure may be used by shareholders 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 Company under the FCA's Disclosure Guidance and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). The Directors of the Company are responsible for the contents of this announcement.

For further information please contact:

Enquiries:

About MedPal AI plc

MedPal AI plc (AIM: MPAL; FRA: Z1N) is a vertically integrated, AI-native digital health and pharmacy group. The Group operates NHS Distance Selling Pharmacy hubs at Sarus Court, Runcorn and Swaffham, New Health (new.co.uk), a dedicated GLP-1 weight management clinic, a B2B care home pharmacy supply business, eMARx, the Group's electronic medication administration record software for care homes, and Juno, an agentic AI health companion built on Anthropic's Claude. MedPal's ambition is to build the UK's leading Health OS: a single platform connecting prescribing, dispensing, delivery, administration and AI-driven patient support. The Company's LEI is 984500EDP8B0A14CBA61.

Forward Looking Statements

This announcement contains forward-looking statements, which are based on the Company's current expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Forward-looking statements are often identified by words such as "believes", "expects", "intends", "may", "will", "should", "anticipates", "estimates", "plans" or similar expressions. These statements, including statements regarding the Group's annualised revenue run rate, its expected receipt of rebates and VAT reclaims and the prospect of securing bank funding, are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Annualised figures are calculated from a short period of trading and are not forecasts. No statement in this announcement is intended to be a profit forecast. The Company undertakes no obligation to update any forward-looking statements except as required by law or the AIM Rules for Companies.

END