Board Changes and Issue of Share Options

A Strengthened Board Focused on a High Growth Strategy

Light Science Technologies Holdings plc (AIM: LST), comprising three divisions: controlled environment agriculture ("CEA"); contract electronics manufacturing ("CEM") and passive fire protection ("PFP"), is pleased to announce that Dr Graham Cooley has been appointed as Non-Executive Chairman, and Richard Mills, previously a consultant to the Company, has been appointed as Independent Non-Executive Director. Myles Halley and Robert Naylor have both stepped down from their respective roles as Non-Executive Chairman and Non-Executive Director. All changes are effective immediately.

Highlights

• Restructured Board strengthens industry and City experience
• Company positioned to capitalise on the growing importance of food security and global cultivation challenges
• Opportunities across all divisions with focus on further growing margins and cash flow

A Strengthened Board Focused on a High Growth Strategy

The Board restructuring further strengthens LSTH's ability to continue building strong product and sales pipelines, both domestically and internationally, positioning the Group to further enhance its prospects within its key growth markets, and especially within the CEA division.

• Cooley has over 35 years' experience at the forefront of new technology introduction in the power, energy storage and hydrogen sectors. He was previously Business Development Manager at National Power plc, the UK's largest power generator and CEO of ITM Power plc, the first hydrogen related company quoted on the AIM Market of the London Stock Exchange, a founding member of the UK Government's Hydrogen Advisory Council and a Board Member of RenewableUK.
• Cooley is a proven deal maker with a particular expertise in product and market strategy and has raised over £600m for British Cleantech SMEs. He has also been an active investor in AIM-quoted UK cleantech companies for over a decade. He gained his PhD in Materials Physics from Brunel University and has several fellowship appointments. Dr. Cooley is currently Non-Executive Director of Cadent Gas, the UK's largest gas distribution company and is Patron of CleanupUK. Dr. Cooley's added value to the Board and Company will include corporate governance, commercial strategy and deal-making.
• Mills, a chartered management accountant, is the Managing Director of Haygrove Limited's Growing Systems Division, where he leads its polytunnel and growing systems business managing over 200 staff. His global CEA experience includes expanding Haygrove into new markets, from conceptualisation, through planning and implementation, rolling new businesses out in China, Germany and India - achieving substantial improvements in revenue growth and profitability. Richard was a Senior Internal Auditor for a Top 20 accountancy practice and an External Auditor at Ernst & Young.

In the September 2023 to February 2024 period that Mr. Mills worked in a consulting capacity for LSTH, he was responsible for significant growth in the pipeline of international CEA opportunities; with distribution partnerships in two new territories expected during the first half of this calendar year and strong progress made in developing relationships in two further significant territories. Mr. Mills lends significant expertise to the Board and Company, which will be of particular benefit in CEA and technologies markets, strategic and market positioning, and as a Chairman of the Audit and Remuneration Committees.

Simon Deacon, Chief Executive Officer of LSTH, commented: "The addition of Graham and Richard to the Board significantly enhances our industry expertise, strengthening our credentials as changemakers. Their passion for our goals is evident, and we're delighted to welcome them. I'd also like to take this opportunity to give my sincere thanks to Myles and Robert, who both played substantial roles in helping the Group to get to where it is today and wish them all the best in their respective retirement and future endeavours.

"As a Group, Light Science, has never been better placed to play its part in addressing these issues. Our CEA offerings are more diverse and mature and are now underpinned by the cash generative CEM division and near-term cash-generative PFP division, building agility and robustness into the business model. With this Board restructure, I have no doubt that the Group is significantly better placed to execute its growth plans."

Dr Graham Cooley, incoming Non-Executive Chairman of LSTH, commented: "I'm a huge believer in the Light Science vision and am delighted to be joining the team. I believe that the cost, carbon footprint and security of supply of food will be core global issues in coming years. Light Science has developed the right products at the right time and is well positioned to take significant share of this huge market. I am also very impressed by the recent steps that management have taken to prioritise cash generation to set a strong foundation for the future."

Richard Mills, incoming Non-Executive Director of LSTH, commented: "The Light Science proposition is clear and strong. There are several factors that, in the coming years, will force us to change the way we look at food production. Many parts of the earth are now facing food and water shortages, with increasingly more regions at near-term risk. Governments are now looking towards policies to encourage sustainable and efficient growing methods. Socially, scrutiny of the effect of food production on climate change has never been higher, and there is growing consensus on the need to transition away from reliance on processed foods."

The Group's Future Growth Strategy

The strategic acquisition of Tomtech in September 2023, bringing 35 years of CEA related experience, has introduced new revenue streams and cross-selling capabilities. The CEA division targets a global market forecast to be nearly £30 billion by 2030*. Notably, the CEA division has already seen positive outcomes from the consulting work that Mr Mills undertook in recent months, focused on developing global partnerships.

The Group's CEM division marked its best year to date reflecting the prevailing market trend in the UK, shifting away from Far East manufacturing to a growing demand for local production. Targeting a £2.3 billion** market, the division invested further in equipment, facilitating more automated production lines for handling larger volume projects. Consequently, this strategic move led to increased sales and profit margins.

To support growth and investment opportunities and strengthen its balance sheet, the Group established the passive fire protection division in November 2023, focusing on creating a near-term revenue and cash generative business, targeting a growing market potentially worth £50 billion*** in the UK. As previously highlighted, this division is currently fulfilling an order worth approximately £600,000, and has a strong pipeline of quoted work, currently valued at £7 million. Moving forward, the Group will explore technology advances in this sector, along with the potential integration of sensor technology across divisions.

Looking ahead, the Group's growth strategy is well focused. The Group will prioritise the strategic opportunity within the CEA division, capitalising on the growing importance of food security and global cultivation challenges. Simultaneously, the CEM division will drive margin improvement, while the PFP division aims to provide near-term cash generation. This balanced approach is expected to position the Company well for future growth.

*Report - Smart Agriculture Market Size & Share report (2030)

**Report - Plimsoll Report (2021) and LSTH's AIM Admission Document - Top 197 participants within the CEM market had a combined turnover of £2.3 billion in 2020

Further details of the updated Board and Committee Structure can be found at the Company's website at: Investors - Light Science Technologies Holdings

Issue of Share Options

The Company has granted options ("Options") over ordinary shares of 1p each in the Company ("Ordinary Shares") to the following Directors of the Group; these are in line with the Management Share Option Plan adopted by the Company on its Admission to trading on AIM on 15 October 2021 ("MSOP") save for providing for accelerated vesting on the occurrence of a takeover or a scheme of arrangement and providing a default "cashless exercise" facility where options are exercised in such circumstances. The option granted to the Non-Executive Chairman has been granted under a non-tax advantaged share option agreement ("NASOA") with equivalent terms.

All Options are exercisable between the second and tenth anniversaries of the date of grant, other than on a takeover or scheme of arrangement where the options may be exercised before the second anniversary. The exercise price is £0.05 per Option.

As at 7 March 2024, the LSTH Employee Benefit Trust, whose corporate trustee is LSTH Trustee Limited ("EBT"), held 8,900,000 Ordinary Shares, representing approximately 2.7 per cent. of the Company's issued ordinary share capital. Of the total 19,629,165 options currently outstanding pursuant to the MSOP, the exercise of 8,900,000 of these can be satisfied through the Ordinary Shares held by the EBT (and therefore will not count towards the overall plan limits set out within the MSOP rules, summarised in the footnote below*), meaning a maximum potential issue of 10,729,165 new Ordinary Shares, representing approximately 3.2 per cent. of the Company's Share Capital, may be required to satisfy all MSOP Share Options in circulation as at 7 March 2024 (including those the subject of this announcement), at a future point in time if all those Options are respectively exercised.

Additionally, a further potential issue of 6,660,110 new Ordinary Shares, representing approximately 2 per cent. of the Company's issued ordinary share capital may be required to satisfy all NASOA Options in circulation as at 7 March 2024 (including those the subject of this announcement), at a future point in time if all those Options are respectively exercised.

*The Company will grant EMI Options for as long as the Company satisfies the qualifying conditions set out in the EMI Code (as defined in Section 527(3) of ITEPA). Under the EMI Code, an employee may hold EMI Options over Ordinary Shares with a value (as at the date of grant) of up to £250,000. Where this threshold is exceeded, the employee may not receive EMI Options for three years. The employee may, however, receive non-qualifying Options. Unless the Remuneration Committee otherwise determines, the aggregate number of Ordinary Shares over which Options may be granted under the MSOP on any date shall be limited so that the total number of Ordinary Shares issued and issuable pursuant to Options granted under the MSOP and any other share scheme operated by the Company in any rolling 10 year period will be restricted to 10 per cent. of the Company's issued Ordinary Share capital from time to time calculated at the relevant time. Treasury shares count towards this limit, as do Ordinary Shares issued to the trustee of an employees' trust. However, Ordinary Shares issued to the trustee of an employees' trust are not counted a second time if those shares are subsequently placed under option or used to satisfy Options. No account will be taken of Ordinary Shares which an employees' trust purchases in the market or of Options which have lapsed, been surrendered or otherwise become incapable of exercise or vesting. The EBT is an employees' trust for these purposes.

Further disclosures pursuant to Schedule Two, paragraph (g) of the AIM Rules for Companies:

Dr Graham Edward Cooley (aged 59)

Orkney Hydrogen Trading Limited

Renewable UK Association

Dr Cooley currently holds 25,080,000 Ordinary Shares, representing 7.53% of the Company's issued ordinary share capital. As part of his appointment, Dr Cooley has also been granted the above detailed Options.

Mr Richard John Mills (aged 44)

Haygrove Limited

Haygrove Development Limited

Haygrove GMBH

Haygrove Inc

Haygrove India Private Limited

Haygrove Plants Limited

Haygrove South Africa Pty

Haygrove spolka z organiczona odpowiedzialnoscia

Haygrove Tunnels Sociedad de Responsabilidad Limitada de Capital Variable

Haygrove (Shanghai Trade) Co Ltd

Controlled Environment Agriculture

The sensorGROW technology enables real-time monitoring of essential air zone growing factors such as carbon dioxide, air humidity, air pressure, air temperature, and light. In development, it aims to extend monitoring to soil temperature, soil moisture, and soil electroconductivity. This empowers farmers to enhance resource management, saving costs on water, nutrients, fertilizers, and energy, while simultaneously increasing yields and cultivating healthier crops. Learn more here https://lightsciencetech.com/sensorgrow/ . The nurturGROW sustainable grow lighting product range, applicable to greenhouses, vertical farming, polytunnels, and medicinal plants, addresses a robust market with an anticipated global worth exceeding US$6.5 billion by 2026. Explore solutions here https://lightsciencetech.com/solutions/greenhouse/

Contract Electronics Manufacturing (https://www.ukcircuits.co.uk/)

Passive Fire Protection (https://injectafirebarrier.com/)

LSTH IFB offers a practical and cost-effective solution to rectify non-compliant public and private buildings, spanning residential, commercial, and industrial sectors, with regard to fire safety regulations-a challenge addressed by a £5.1 billion allocation from the UK government. Serving as the UK's premier independent approved installer, LSTH IFB utilizes the ground-breaking Injectaclad fire-resistant graphite barrier system. This system is retroactively installed within building cavities, reinstating fire-resistant performance and containing the spread of fire and smoke compliant with regulatory requirements. This innovative solution stands out as an appealing alternative to the more costly and disruptive method of removing external facades and installing traditional fire barriers. With a proven track record in the passive fire protection market and a robust sales pipeline, LSTH IFB targets a UK market potentially valued at up to £50 billion.