Placing to raise £5m

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 approximately £5.0 million (the "Fundraise") through the issue of 142,857,133 new ordinary shares of £0.0002 each (the "Fundraise Shares") at a price of 3.5 pence per share (the "Issue Price"). The Fundraise has been arranged by OAK Securities as sole broker to the Fundraise.

The Issue Price of 3.5 pence represents a 12.5 per cent. discount to the closing mid-market price of 4p per share on 2 July 2026 and a 40 per cent. premium to the price at which the Company raised £3 million in April 2026, reflecting the substantial operational and commercial progress delivered since that time.

In addition, the Company is issuing 10,942,857 new ordinary shares (the "Settlement Shares") in settlement of existing contractual obligations, as set out below.

Highlights

• Gross proceeds of approximately £5.0 million raised at 3.5 pence per share - a 40 per cent. premium to the April 2026 placing price of 2.5 pence
• Proceeds fund the acquisition of Solid State Technologies Ltd ("Solid State Technologies"), a profitable electronic Medicines Administration Record ("eMAR") software business, completing MedPal's closed-loop care-home medication platform
• Positions the Company to capture the UK launch of the oral GLP-1 weight-loss pill (oral Wegovy®), launching in the UK on 6 July 2026, through investment in stock and patient acquisition
• Strengthens working capital to support record NHS dispensing volumes and continued growth across the Company's vertically integrated platform
• Strongly supported by institutional and new investors

Use of Proceeds

The net proceeds of the Fundraise will be deployed against two highly strategic, time-sensitive and revenue-generating opportunities, alongside general working capital:

• Intended acquisition and integration of Solid State Technologies Ltd ("SST") (c.£0.5m subject to formal completion): SST provides the electronic Medicines Administration Records ("eMAR") software layer that sits at the point of care in the care homes with which MedPal Pharmacy has a supply arrangement. Combined with MedPal's robotic dispensing hubs and existing B2B supply relationships, it will complete a MedPal end-to-end platform across prescribing, dispensing, administration and reconciliation - a closed-loop health OS for the care-home sector. SST's latest management accounts (to 31 May 2026), show annualised revenue of c.£843,000 and annualised profit of c.£307,000. SST is to be acquired for a maximum total consideration of £0.5 million.

• Oral GLP-1 launch - stock and patient acquisition (up to c.£3.0m): the first oral GLP-1 weight-loss treatment, oral Wegovy®, launches in the UK on 6 July 2026. Since its US launch in January 2026, US prescription dispensing volumes have exceeded three million in just over five months, with more than 80 per cent. written for patients new to GLP-1 therapy, according to Novo Nordisk. With a live, marketed weight-loss clinic, a Novo Nordisk supply relationship and a low-cost robotic dispensing platform, the Company intends to invest in stock ahead of anticipated demand and in patient acquisition to secure a large launch cohort. Each active private patient is forecast to generate c.£2,400 of recurring revenue per annum.

• Working capital and growth (balance): providing operational headroom to support record NHS dispensing volumes, care home portfolio growth and general corporate purposes, including the costs of the Fundraise.

Issue of Shares in Settlement of Fees in lieu of cash

In addition to the Fundraise, the Company is issuing a total of 10,942,857 new ordinary shares of £0.0002 each (the "Settlement Shares") in settlement of existing contractual obligations to certain service providers and consultants. These include 1,200,000 Settlement Shares issued at 2.5p per share to a service provider in respect of £30,000 in line with an existing marketing services agreement. The other Settlement Shares were valued at 3.5p per share. The 1,200,000 Settlement Shares issued at 2.5p per share are subject to a two-month lock-up from the date of issue.

The issue of the Settlement Shares satisfies these obligations in full without utilising the Company's cash resources. Application will be made for the Settlement Shares to be admitted to trading on AIM at the same time as the Fundraise Shares.

Details of the Fundraise

The Issue Price of 3.5 pence per Fundraise Share represents a discount of approximately 12.5 per cent. to the closing mid-market price of 4 pence per Ordinary Share on 2 July 2026 (being the latest practicable date prior to this announcement).

The Fundraise 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 Fundraise Shares and the Settlement Shares (together comprising 153,799,990 new ordinary shares) to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the new ordinary shares will commence at 8.00 a.m. on 8 July 2026.

Following Admission, the Company's issued ordinary share capital will consist of 769,841,026 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 769,841,026, 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 Fundraise is conditional upon, amongst other things, Admission becoming effective.

As part of OAK Securities' engagement, OAK Securities has been granted warrants to subscribe for 8,571,428 new ordinary shares, exercisable at the Issue Price for a period of 36 months from closing of the Fundraise.

Outlook

MedPal AI is entering the next phase of its growth with significant operational momentum. The current momentum of the Company's strategy has brought forward opportunities the Board had expected to address later in its plan, and growth is now being driven by three distinct and complementary engines:

• NHS pharmacy dispensing: record and rising dispensing volumes through the Company's robotic distribution hub, providing scale, cash generation and the lowest-cost fulfilment platform in the UK;
• Care-home medication platform: the acquisition of Solid State Technologies completes the closed-loop care-home OS, converting transactional pharmacy relationships into sticky, software-led partnerships with recurring revenue; and
• Private weight-loss clinic (GLP-1): a rapidly scaling, subscription-based clinic, underpinned by direct supply relationships with Eli Lilly and Novo Nordisk, positioned to capture the UK launch of the oral Wegovy® pill on 6 July 2026 from day one.

To drive the near-term marketing strategy around the launch, the Company has appointed Erin Fox as Senior Director of Marketing, who will lead patient acquisition for the launch cohort. Erin brings over a decade of experience leading digital marketing, ecommerce and customer engagement for global retail and consumer brands. She joins from Avolta, the world's largest duty free retailer, where she led Global Digital, overseeing digital trade and content across 225 ecommerce websites, a loyalty programme spanning 72 countries and 120 social media channels. Erin previously held senior digital and ecommerce roles at Charlotte Tilbury and Harrods.

With the proceeds of the Fundraise, the Board believes MedPal AI is well positioned to move decisively on these opportunities and to 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:

"Raising £5 million at a 40 per cent. premium to our April placing price is a strong endorsement of the progress MedPal has made and of the two opportunities in front of us.

"The acquisition of Solid State Technologies completes our closed-loop care-home platform - prescribe, dispense, administer and reconcile on a single system - and brings established, profitable, recurring software revenue into the Group. And with the oral Wegovy pill launching in the UK on 6 July, we have a live clinic, a Novo Nordisk supply relationship and the dispensing infrastructure to capture what has been one of the strongest pharmaceutical launches on record in the US.

"This funding gives New Health (new.co.uk), our weight-loss clinic, the firepower to compete at the highest level of the UK market, alongside MedExpress, Voy, Juniper and Hims - with a vertically integrated dispensing platform behind it that we believe none of them can match.

"With three engines of growth now firing together - NHS dispensing, our care-home platform and our weight-loss clinic - and Erin Fox joining from Avolta to lead our digital marketing into the launch, MedPal is no longer taxiing to the runway. We are in the air, travelling at speed, and climbing.

"I would like to thank our existing shareholders for their continued support and welcome our new investors. We are moving decisively, with capital in hand, at exactly the right moment."

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