B"H

6 September 2021

Shefa Gems Ltd.

("Shefa Gems" or the "Company")

Completion of the Equity Subscription of Ordinary Shares of the Company

Further to the announcement on 9 August 2021, regarding the approval of the Combined Transaction in the SGM, Shefa Gems (LSE: SEFA), is pleased to announce the conclusion of the equity subscription of 2,123,543,065 new ordinary shares of the Company ("Subscription Shares") at a price of USD 0.0005 per share for a total of USD 1,050,000 to investors in the Shany Group and other unrelated parties ("Equity Subscription").

In addition, further to the announcement on 5 July 2021, regarding the publication of Circular and Notice of the SGM the Company is pleased to announce the completion of the conversion of debt in a total of GBP 81 thousand into 1,627,973 ordinary shares of the Company, at a price per share of GBP 0.05, together with 1,627,973 options to purchase ordinary shares of the Company with an exercise price of GBP 0.1 each (the: "Allocated Securities"). The Allocated Securities were issued to the Company's CFO, Mr. David Ben David in connection with the Combined Transaction.

The following table contains a list of the investors of the Shany Group and the amount of Subscription Shares issued to each of the investors:

The Subscription Shares, in aggregate, represent 91.28% of the Company's Enlarged Issued Share capital. The Subscription Shares are fully paid and rank pari passu in all respects with the Company's Existing Ordinary Shares.

The issue of the Subscription Shares has triggered the requirement for a prospectus to be published in respect of those shares.  The Company intends to prepare a prospectus to enable those shares to be admitted to trading on the Main Market of the London Stock Exchange in accordance with Listing Rule 14.3.4.  Further information on expected timing will be provided in due course.

Use of Proceeds

The gross proceeds receivable by the Company pursuant to the Subscription is USD 1,050,000 (GBP ~756,000), before expenses.

Funds raised will be used for general working capital purposes by the Company in pursuance of its new strategy seeking acquisition opportunities in the web technology and software space.

Total Voting Rights

The 2,125,171,038 New Ordinary Shares to be issued under the Equity Subscription and the Allocated Securities have been allotted but as explained above, not admitted to trading.    

The Company's enlarged issued share capital consists of 2,326,517,860 Ordinary Shares.  Each Ordinary Share carries one vote. Therefore, the total number of voting rights in the Company is 2,326,517,860. The above figure may be used by shareholders as a 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 and Transparency Rules.

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