Placing to raise £3m

MedPal AI Plc (AIM: MPAL, FRA: Z1N), the UK digital health and AI company, is pleased to announce that it has conditionally raised gross proceeds of £3 million (the "Placing") through the issue of 120,000,000 new ordinary shares of £0.0002 each (the "Placing Shares") at a price of 2.5 pence per share (the "Placing Price"). The Placing has been arranged by OAK Securities as sole broker to the Placing.

The Placing has been strongly supported by a number of new institutional investors, reflecting confidence in the Company's operational momentum, expanding commercial pipeline, and clear pathway to profitability.

Highlights

• Gross proceeds of £3.0 million raised at 2.5 pence per share
• Substantially funds the Company's growth plan - proceeds expected to support the Company's operational roll-out and pathway to profitability
• Accelerates scale-up of the MedPal weight-loss clinic (GLP-1 platform), the UK's fastest-growing segment of private healthcare
• Supports working capital to meet rapidly rising NHS dispensing volumes (record 41,600 items dispensed in March 2026) and care home portfolio growth
• Enables delivery of a number of significant commercial partnerships currently under advanced discussion
• Strengthens balance sheet and provides operational headroom to capitalise on further strategic opportunities as they arise
• New broker appointment: OAK Securities joins the Company as joint broker alongside Clear Capital Markets Limited, bringing enhanced institutional distribution capability

Use of Proceeds

Recently the Company has undertaken a number of smaller fundraises which were necessary to support its capital expenditure into robotics at its distribution facility and to acquire sufficient stock to meet the strong and increasing demand it is experiencing for prescription fulfilment.

The proceeds of this Placing will be deployed to accelerate MedPal's growth strategy and support the Company's continued progress towards profitability. Key allocations include:

• Marketing and patient acquisition (c.£1.3m): scaling MedPal.clinic, the Company's private weight-loss clinic, to capture share of the rapidly growing UK GLP-1 market. Strong sales to date have been achieved without any investment in this area.
• Working capital (c.£0.8m): supporting higher stock levels and a wider product range to meet record NHS dispensing volumes and care home portfolio expansion
• Team expansion (c.£0.5m): investment in senior commercial, clinical and operational hires to support the Company's growth and commercial pipeline
• Capital expenditure (c.£0.15m): completion of robotic dispensing capacity expansion at the Runcorn hub
• Corporate and transaction costs (c.£0.25m): including fees and general corporate purposes

Details of the Placing

The Placing Price of 2.5 pence per Placing Share represents a discount of approximately 13 per cent. to the closing mid-market price of 2.8 pence per Ordinary Share on 16 April 2026 (being the latest practicable date prior to this announcement).

The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared, made or paid after their date of issue.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Placing Shares will commence at 8.00 a.m. on 22 April 2026.

Following Admission, the Company's issued ordinary share capital will consist of 612,441,036 ordinary shares of £0.0002 each, with one voting right per share. No ordinary shares will be held in treasury. The total number of voting rights in the Company following Admission will therefore be 612,441,036, which 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 FCA's Disclosure Guidance and Transparency Rules.

The Placing is conditional upon, amongst other things, Admission becoming effective.

As part of OAK Securities' engagement, OAK Securities has been granted warrants to subscribe for 7,200,000 new ordinary shares, exercisable at the Placing Price for a period of 36 months from the date of Admission.

Outlook

MedPal AI is entering the next phase of its growth with significant operational momentum. The Company's vertically integrated model - combining NHS pharmacy dispensing, a scaling private weight-loss clinic, AI-powered consumer healthcare, and B2B care home supply - is delivering record volumes, expanding gross margins, and an increasingly visible pathway to profitability.

With the proceeds of the Placing, the Board believes MedPal AI is well positioned to execute its operational plan, convert its commercial pipeline, and build on the substantial momentum established over the past twelve months. The Board looks forward to updating the market on further progress over the coming weeks and months.

Jason Drummond, Chief Executive of MedPal AI, commented:

"This £3 million fundraise is a significant milestone for MedPal. It substantially strengthens our balance sheet and positions us to capitalise on the extraordinary growth we are seeing across every part of our business.

"Our NHS pharmacy operations are dispensing at record volumes, our weight-loss clinic is scaling rapidly with the backing of direct supply agreements with Eli Lilly and Novo Nordisk, and our consumer app and clinical triage platform, MedPal Health OS, is attracting significant commercial interest. We have a number of material commercial conversations in progress which this funding will enable us to convert and deliver.

"I would like to thank our existing shareholders for their continued support and welcome our new investors. We are also delighted to welcome OAK Securities as joint broker. Their institutional reach and conviction in our strategy will be invaluable as we move into the next phase of growth."

The Directors of the Company are responsible for the contents of this announcement.