Final Results

Ashington Innovation plc (LSE: ASHI; FSE: 6FW), a special purpose acquisition company ("SPAC"), announces its audited results for the 17 months ended 31 December 2023.

Management Report:

During the period, the Board of Directors worked to assess potential acquisition targets in the technology, financial technology ("fintech") and deep technology sectors with the aim of creating a combined business which will generate increased value for the Company's shareholders.

To facilitate this aim, the Company increased its access to capital to fund a potential acquisition. Ashington's successful IPO on the LSE in June 2023 raised gross proceeds of £809k, valuing the Company at approximately £1.84 million. In August 2023, the Company furthered its access to capital by dual listing on the Frankfurt Stock Exchange, with the intention of enhancing liquidity and facilitating further investment in the Company. The FSE is the largest of Germany's eight stock exchanges and is responsible for approximately 90 percent of all securities traded in Germany, making it an excellent location for Ashington to reach European investors.

During this period, Ashington strengthened its management team. In October 2023, Grant Duthie joined the Board of Directors, and Richard Paolone and Daniel Nauth in November 2023. The three new non-executive directors bring impressive corporate and legal experience to the Board across capital markets, mergers and acquisitions, corporate and securities transactions, regulatory compliance and beyond.

No revenue was generated during the year and a loss before tax of £878k was incurred, reflecting start-up costs, expenses relating to the IPO as well as ongoing operating costs. Ashington had net cash of £323k as at 31 December 2023. Based on the directors' assessment of the Company's cash needs and the availability of financing, the directors consider the Company to be a going concern and anticipate a fundraising may be required during the year ahead. A further update will be provided in due course.

The investment opportunity within the fintech and deep tech sectors remains strong; fintech revenues are expected to grow approximately three times faster than those in the traditional banking sector between 2023 and 2028 (source: McKinsey & Co., 2023). The deep tech sector is similarly well positioned, with the UK emerging as a hub for the sector. The UK attracted $12.8 billion in deep tech funding between 2018-2023 including $3.4 billion in 2023 alone (source: Dealroom, 2023). As such, the Board remains optimistic that it will secure an acquisition which will generate value for investors.

Merger Discussions

On 17 August 2023, Ashington signed a non-binding Heads of Terms with Cell Therapy Ltd. ("Cell Therapy") to acquire 100% of Cell Therapy in an all-share transaction. On 24 August 2024, the Company signed a further Heads of Terms with Calon Cardio-Technology Ltd. ("Calon") to acquire 100% of Calon in a further all-share transaction. Given the market conditions, it became uncertain that the required funding for the Transaction would be available. The Board therefore concluded that it was no longer in the best interests of shareholders to proceed.

Ashington is continuing to assess several potential acquisition targets and will update the market if and when discussions are suitably advanced.

In accordance with Listing Rule 9.6.3, the 2023 accounts have been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The accounts are available for download from the Company's website (www.ashingtoninnovation.com).