THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE EU REGULATION 596/2014 AS IT FORMS PART OF THE UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

20 July 2023

Pittards plc

Proposed Trade Investor Subscription to raise up to £1 million

Pittards (AIM:PTD), the specialist producer of technically advanced leather and luxury leather goods for retailers, manufacturers and distributors announces, that further to the announcement on 11 June 2023, the Company has successfully concluded discussions with a Trade Investor, who has agreed, subject to finalisation of a subscription agreement, to invest up to £1 million via the issue of up to 25,000,000 new Ordinary Shares at the issue price of 4 pence per share ("Issue Price") under the current Open Offer to Shareholders, subject to its shareholding being less than 30 per cent. of the Enlarged Voting Share Capital on Admission ("Trade Investor's Subscription"). The number of new Ordinary Shares for which the Trade Investor is prepared to subscribe will therefore be dependent on the take-up of the Open Offer. If the Trade Investor is unable to subscribe for £1 million of new Ordinary Shares it will invest up to a further £124,000 by way of zero coupon unsecured convertible loan notes, convertible into Ordinary Shares at the Issue Price. Based on the minimum fundraise of £1.16 million the Trade Investor would be able to invest an aggregate approximately £638,670.

The Trade Investor's Subscription is expected to be conditional, inter alia, on the satisfaction of the following conditions by 8.00 a.m. on 28 July 2023 (or such later time and/or date (being no later than the Long Stop Date) as WH Ireland and the Company may agree):

·      the Company successfully raising a minimum of £1.16 million of additional capital;

·      the New Banking Facilities being entered into;

·      the passing of the Fundraising Resolutions (without material amendment) at the General Meeting or any adjournment thereof; and

·      Admission taking place.

SHOULD THE COMPANY BE UNABLE TO RAISE A MINIMUM OF £1.16 MILLION OF ADDITIONAL CAPITAL, THE COMPANY WOULD BE UNABLE TO CONTINUE TO TRADE AND WOULD MOST LIKELY BE PLACED INTO ADMINISTRATION IN WHICH CASE THE PROSPECTS FOR RECOVERY OF VALUE, IF ANY, BY SHAREHOLDERS WOULD BE UNCERTAIN.

THE TRADE INVESTOR'S SUBSCRIPTION REMAINS SUBJECT TO CONTRACT AND THERE CAN BE NO GUARANTEE THAT THE CONDITIONS OF THE TRADE INVESTOR'S SUBSCRIPTION WILL BE FULFILLED OR THAT IT WILL BE COMPLETED ON THE TERMS SET OUT ABOVE OR AT ALL.

A further announcement will be made in due course.

This announcement should be read in conjunction with the full text of the Circular posted to Shareholders on 11 July 2023 copies of which are available on the Company's website at https://corporate.pittards.com/investors/. Capitalised terms in this announcement have the same meaning as given in the Circular.

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