Expansion Funding and Integrated Wood Pellet JV

Cindrigo Holdings Limited (LSE: CINH), is pleased to confirm that further to the RNS announcements on 23 December 2025 and 4 April 2026, it has entered into binding agreements with a strategic investor group (the "Investors") for over £11 million in investments and guarantees across the Group and its biomass development activities, to support and strengthen the Group's development.

The agreement also provides for the expansion of Cindrigo's biomass operations through the joint development of an integrated sustainable wood pellet business via Fuelwood Finland Oy ("Fuelwood"). Fuelwood is expected to become the primary customer of energy from the Group's Finnish heat-generating business, forming a key part of Cindrigo's vertically integrated biomass strategy.

Under the terms of the agreements, the Investors will provide approximately £6.7 million in equity funding for Cindrigo at a price of 12 pence per share and contribute a further €3 million into Fuelwood and has also committed up to an additional £2 million to be drawn down to the extent the Company's warrants exercisable up until 31 July 2026 are not exercised. Furthermore, the Investors have the right but not the obligation to subscribe an additional £2 million.

In combination with a €1 million development loan from Cindrigo, the Fuelwood joint venture will have an initial capitalisation of approximately €4 million, sufficient to support its establishment and initial operational phase. In addition, the Group will provide management services to Fuelwood, which are expected to generate approximately €1m of revenue in 2026 for Cindrigo.

Key Points

• Approximately £6.7 million (£3 million and US$5 million) equity investment from the Investors directly into Cindrigo at 12 pence per share.
• The Investors have also committed up to £2 million, which will be drawn down if any of the Company's warrants, which are capable of exercise up to 31July 2026, are not fully exercised,

o Investment to be made at the lower of a 20% discount to the Company's 30-day volume weighted average price ("VWAP") or 12 pence per share.

• In addition, the same Investor has the right to subscribe for a further £2m of Cindrigo shares at a 20% discount to the Company's 30-day VWAP.
• Cindrigo and the Investors will operate Fuelwood as a jointly funded and operated sustainable biomass business, with Cindrigo initially holding a 20% interest. Cindrigo retains the right to increase its ownership to a majority position, with potential for further consolidation over time.
• Cindrigo and the Investors will jointly fund Fuelwood joint venture, initially with €4 million through 3 years development-loans with a 9% interest per annum.:

o The Investors will contribute €3 million

o Cindrigo will provide a €1 million

• Funding is sufficient for Fuelwood to achieve an initial production capacity of 80,000 tonnes per annum ("tpa") by the end of 2026. The long-term target is circa 400,000 tpa.

o Implied revenue potential of c. €20 million and c. €100 million respectively, based on recent wood pellet prices.

• The Group will provide support to Fuelwood under a Management Services Agreement during installation and establishment, and for at least the first year of operation, generating €75,000 per month during 2026
• Fuelwood is expected to become the primary customer of energy services from the Group's energy business in Finland.
• The integrated operating model is expected to deliver operational, cost and commercial synergies, broaden industrial heat, pellet and power sales and reduce reliance on a single third-party off-taker.

Lars Guldstrand, CEO of Cindrigo, commented:

"This announcement marks the transition from strategic intent to execution of both a funding and strategic partnership to support the Group's expansion. The combined investment into Cindrigo and the Fuelwood joint venture provides a strong foundation for the Company's continued development and our integrated sustainable biomass platform. The funds will enable us to commence pellet production while supporting the ramp-up of our energy operations in Finland.

"Fuelwood is a key component of our biomass strategy, linking sustainable pellet production with heat, steam and power generation. This integrated structure provides an opportunity to broaden our market reach, diversifying revenue streams and increasing our ownership over time. The Management Services Agreement provides operating control and recurring service income, while allowing us to align production and energy demand from the outset.

"We expect ramp-up during 2026, with initial pellet production volumes commencing during the year and building towards the winter season. By the end of 2026, we aim to achieve a rolling annual pellet production rate of approx. 80,000 tonnes, providing a solid base for expansion towards our longer-term target of approximately 400,000 tonnes per annum. The energy plant, as the primary heat and power provider to Fuelwood, will follow a parallel growth path.

"Importantly, the funding secured will not only support the development of our biomass operations in Finland, but also strengthen the Group's broader financial position, allowing us to accelerate our activities in Germany and across our wider portfolio.

"We look forward to the coming period with confidence as we continue to execute our strategy to build a diversified, scalable energy platform, with a strong foothold in Europe's energy transition."

Application for Subscription Shares

On receipt of subscription funds, application will be made for the admission to trading of 55,708,333 new ordinary shares of £0.01 each in the Company (the "Subscription Shares"), to be issued pursuant to the c. £6.7 million subscription by the Investor, at a price of 12 pence per new ordinary share. The Subscription Shares, when issued, are expected to represent 14.3% of the Enlarged Share Capital. The Subscription Shares will rank pari passu in all respects with the existing ordinary shares of the Company. A further announcement confirming receipt of the subscription funds, the expected admission date for the Subscription Shares and the Company's total voting rights will be made in due course.

Following the Company's listing, Cindrigo has strengthened its strategic and commercial position, enabling engagement with new investors and partners. The Board views this investment as a coordinated strategic partnership aligning capital, ownership and execution across the biomass value chain, supporting disciplined delivery of the Group's biomass strategy and long-term expansion.

Fuelwood is developing a wood pellet production facility that will operate in close integration with the Group's energy plant. Through its initial 20% equity interest and Management Services Agreement, Cindrigo will play a central role in the development and operation of the business.

The integrated model is expected to improve operational certainty, increase utilisation of existing assets and infrastructure, and diversify revenue streams across pellet production, industrial heat, steam and power sales. The phased ramp-up model allows for controlled execution, with initial services already underway and progressive increases in production and energy delivery expected during 2026 and beyond.

Strong Market Demand

The Finnish biomass market continues to demonstrate strong underlying demand. Structural changes in energy consumption, combined with increased availability of feedstock and ongoing conversion from fossil fuels, are supporting growth in wood pellet demand.

Fuelwood is expected to achieve an initial production capacity of approximately 80,000 tpa by the end of 2026, with a long-term target of approximately 400,000 tpa. At current market prices of approximately €240 per tonne, this represents a potential annual revenue of up to approximately €100 million at full capacity. This would position Fuelwood as one of Europe's largest sustainable wood pellet production facilities and a key contributor to Europe's transition to sustainable energy.

Regional trading platforms for Finland reported an index price for spot contracts for delivered wood pellets equivalent to approximately €240 per tonne.

Balanced Growth Across Biomass and Geothermal

Biomass and geothermal are viewed as complementary components of the Group's long-term strategy. Biomass provides a near-term solution for decarbonise current fossil fuel sectors, while geothermal supports long-term energy security through "always available" sustainable energy production.

While expanding its biomass activities, the Company also continues to advance its geothermal licences in the Upper Rhine Valley, targeting a potential combined capacity of approximately 300 MW across multiple projects.