Opportunities

The Board has always been cognisant that the end customers for our materials will not allocate substantial orders for safety critical components directly to a company of our size. We have therefore successfully built the network of Tier 1 supplier partnerships that we have. However, it has become increasingly clear that the time frames that are both inherent and deeply uncertain in the industry, often spanning many years, mean that managing our consequent funding requirements are beyond (again) a company of our size.

We have concluded, therefore, that we will seek a purchaser for the Company, to conclude within twelve months and ideally this calendar year. This is likely to be from amongst (or similar to) those Tier 1 partners we have cultivated. We know their senior management teams, and they know the potential of our material in the right hands. They are also used to thinking of end-customer relationships in terms of decades.

With our current burn rate at £50k-£60k per month, and some catch-up of overdue creditors, we are therefore seeking to raise between £500k-£1m, effectively as a bridge to a sale. To achieve that we have sought to structure an offer that both reduces the risk attaching to any investment as much as is possible, and to offer the possibility of a very meaningful upside on exit. We are therefore proposing a shareholder Convertible Loan Note (CLN) with:

• the benefit of security ranking above all creditors except the senior lender
• a coupon of 10% p.a. rolled up until repayment or conversion
• repayment backstop date 31^st December 2027
• conversion at any time before then at the option of each CLN holder
• a conversion price of 33.333p per share (a c80% discount to the last round £1.75)
• commitment required by COB 29^th May 2026 and drawdown on 5^th June 2026.