Conversion of Convertible Loan Note

KRM22 plc
("KRM22", the "Group" or the "Company")

Conversion of Convertible Loan Note

KRM22 plc (AIM: KRM), the technology and software investment company, announces that further to the announcement made on 17 April 2020, the Company has settled the £0.55m convertible loan note ("CLN") due to Cinnober Financial Technologies AB ("Cinnober") by converting the CLN into 1,454,434 new ordinary shares ("Ordinary Shares") of 10 pence each in the Company.

The CLN, provided by KRM22 to Cinnober on 16 April 2020 as consideration for the remaining 40% stake in Irisium, was for a one-year term and could be satisfied be either the allotment and issue of ordinary shares in the Company by no later than 31 July 2020 or settled by cash at any point in the CLN term, at the Company's sole discretion. KRM22 has exercised its right to settle the CLN of £0.55m plus accrued interest of £0.01m, resulting in a total number of shares issued and allotted to Cinnober to be 1,454,434 new Ordinary Shares at 38.4p per share. The transaction immediately removes £0.6m of debt and liabilities from the Group's balance sheet.

Admission

Application has been made to the London Stock Exchange plc for the admission of the 1,454,434 new Ordinary Shares to trading on AIM ("Admission"). Admission is expected to become effective at 8.00 a.m. on 1 July 2020.

On Admission, the Company will have 26,719,127 Ordinary Shares in issue. The Company holds no shares in treasury. Accordingly, the figure of 26,719,127 can 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 Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

As a result of the conversion, Cinnober will hold a total of 2,654,434 Ordinary Shares in the Company being 9.93% of the Company's issued share capital following Admission. The Ordinary Shares allotted to Cinnober are subject to a 90 day restricted period in which Cinnober is unable to sell, transfer, grant any option over or otherwise dispose of the Ordinary Shares.

Enquiries:

KRM22 plc                                                                                             [email protected]

Keith Todd CBE, Executive Chairman and CEO

Kim Suter, CFO

finnCap Ltd (Nominated Adviser and Sole Broker)                       +44 (0)20 7220 0500

Carl Holmes / Kate Bannatyne / Matthew Radley

Alice Lane / Sunila de Silva (ECM)

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

About KRM22 plc

KRM22 is a closed-ended investment company which listed on AIM on 30 April 2018. The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets.

Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management. The Global Risk Platform provides applications to help address firms' regulatory, market, technology and operations risk challenges and to manage their entire enterprise risk profile.

Capital markets companies' partner with KRM22 to optimise risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha.

KRM22 PLC is quoted on AIM and the Group is headquartered in London, with offices in several of the world's major financial centres.

See more about KRM22 at KRM22.com.