Fundraise of £827,000 with existing shareholders

Eco Buildings Group Limited (ECOB), a modular housing company, is pleased to announce that it has raised £827,000 via a subscription for 6,891,667 new ordinary shares ("Subscription Shares") by several supportive existing shareholders (the "Fundraise"). Dr Etrur Albani, a non-executive director and co-founder of Eco Buildings and Andrew Allner whose retirement as Chairman was announced on the 18 January 2024 are participating in the Fundraise.

The Subscription will be completed at a price of 12 pence per share (the "Issue Price"), being a 4.3% premium to the closing market price of 11.50 pence per share on 7 February 2024 (the business day prior to the date of this announcement).Warrants over new ordinary shares will be issued on the basis of one for every one Subscription Share. The warrants have a three year term, with an exercise price of 12p for the first 12 months, 19p for the following 12 months, and 26p for the final twelve months.

The Fundraise is conditional, inter alia, upon admission of the Subscription Shares to trading on AIM becoming effective in accordance with the AIM Rules for Companies and occurring by not later than 8.00 a.m. on 13 February 2024.

Use of Proceeds

The proceeds will be used to accelerate production of modular housing and help satisfy the existing €114M order book over 3 years. The Company anticipates that the first revenue is to be received in the current quarter (Q1 2024) and ongoing thereafter. In addition the Company will use funds to support growth in new geographic areas.

Director's Participation and Related Party Transactions

Dr Etrur Albani, a non-executive director and co-founder of Eco Buildings, is investing £100,000 by subscribing for 833,333 Subscription Shares at the Issue Price. Following Admission, Dr Etrur Albani will have an interest in 17,640,286 Ordinary Shares representing 22.92 per cent. of the Enlarged Share Capital.

Andrew Allner, whose retirement as Chairman was announced on 18 January 2024, is also participating and investing £35,000 by subscribing for 49,693 Subscription Shares at the Issue Price. Following Admission, Andrew Allner will have an interest in 341,360 Ordinary Shares representing 0.44 per cent. of the Enlarged Share Capital.

The participation of Etrur Albani and Andrew Allner in the Fundraise constitute related party transactions under Rule 13 of the AIM Rules. The Independent Directors (being Don Nicolson, Sir Mark Lyall Grant, Ahmet Shala, Sanjay Bowry and Fiona Hadfield) consider, having consulted with the Company's nominated adviser, Spark Advisory Partners Limited, that the terms of their participation in the Fundraise are fair and reasonable insofar as Shareholders are concerned.

Admission & Total Voting Rights

The new ordinary shares will rank pari passu with the existing ordinary shares in all respects.

Following the admission of the new ordinary shares, the total issued share capital of the Company will be 76,961,747 ordinary shares, each with voting rights. The Company does not hold any ordinary shares in treasury. The above 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, under the Disclosure and Transparency Rules.