Result of REX Retail Offer

Further to the announcement on 29 February 2024, in which the results of the Firm Placing, Conditional Placing and the Direct Subscription were confirmed, Avacta is pleased to announce that it will, subject to shareholder approval at the General Meeting to be convened at 11.00 a.m. on 18 March 2024, issue 10,896,948 Ordinary Shares at a price of 50 pence per Ordinary Share in connection with the REX Offer.

The REX Offer was limited to an aggregate value of £6.8 million and received total applications in excess of this amount. Avacta has determined only to allocate REX Offer Shares to existing Avacta retail shareholders and therefore a total of approximately £5.4 million (equating to 10,896,948 REX Offer Shares) is expected to be raised pursuant to the REX Retail Offer.

Consequently, 27,520,485 Ordinary Shares have been issued in connection with the Firm Placing and Direct Subscription and, conditional on shareholder approval at the General Meeting to be convened at 11.00 a.m. on 18 March 2024, 34,776,072 Ordinary Shares will be issued in connection with the REX Offer and the Conditional Placing, resulting in a total of 62,296,557 new Ordinary Shares being issued in the Firm Placing, Conditional Placing, Direct Subscription and REX Offer, raising total gross proceeds of circa. £31.1 million. Application will be made for the REX Offer Shares to be admitted to trading on AIM.

The Conditional Placing and the REX Offer are conditional on, amongst other things, the passing of a resolution to grant the directors of the Company the requisite authority and power to allot the Conditional Placing Shares and REX Offer Shares by the requisite majority of shareholders at a general meeting of the Company being convened on 18 March 2024 and Second Admission. Admission of the Firm Placing Shares and the Direct Subscription Shares, which raised a total of £13.8 Million, took place at 8.00 a.m. on 4 March 2024. Admission of the REX Offer Shares and the Conditional Placing Shares to raise a further £5.4 Million and £11.9 Million respectively is expected to take place at 8.00 a.m. on 19 March 2024, subject to the result of the general meeting.

Following Admission of the Firm Placing Shares, Direct Subscription Shares, Conditional Placing Shares and REX Offer Shares, the number of Ordinary Shares that the Company has in issue will be 350,512,279 (assuming no other Shares are issued before Second Admission). The total number of voting rights of the Company will be 350,512,279 and this figure may 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.

Capitalised terms used but not defined in this announcement have the same meanings as set out in the placing announcement of the Company released at 4:41 p.m. on 28 February 2024.

Alastair Smith, Avacta Group plc Chief Executive, commented:

"Without additional funds in excess of £20m, the Company would not have been able to progress any of its pre-clinical pipeline, which we believe will drive significant future shareholder value well beyond AVA6000.

"Despite the difficult circumstances surrounding the placing we therefore believe it is in the Company's and shareholders' best interests to raise sufficient funds to both progress AVA6000 and the broader pipeline. However, we have limited the allocation under this REX Retail offer to existing shareholders only in order to minimise further dilution at this price.

"This financing has brought several new high-quality institutions onto the share register including a large European healthcare specialist fund and, subject to the outcome of the general meeting, it provides Avacta with funding to both advance AVA6000 through the clinic as well as developing exciting pre-clinical assets which we look forward to detailing later this year."

REX Retail Info@rexretail.com

Further information on the Company can be found on its website at www.avacta.com/investors

The Company's LEI is 2138009U3EG31OPMGH36