Trading Update

MedPal AI plc (AIM: MPAL; FRA: Z1N), the AI-native digital health and pharmacy group, provides the following trading and financing update following the movement in its share price and the volume of shares traded on 6 October 2026.

Highlights

• Record trading: on Monday 5 October 2026, New Health dispensed over 2,300 prescription orders in a single day, with a total order value of approximately £0.3 million.
• Working capital facility: the Company has received an indicative term sheet from a non-bank lender for £8 million of funding, with other financing options under review.
• No equity fundraising planned: the Company confirms that no equity fundraising has been agreed and none is planned.
• Strong liquidity position: as at 6 October 2026, the Group held cash, near cash and stock of approximately £6.4 million.

Cash and working capital

As at 6 October 2026 the Group held cash, debtors and stock of approximately £6.36 million. This comprised cash balances of approximately £3.39 million (including approximately £0.56 million due from its card payment processor); VAT of approximately £1.40 million, principally in respect of its August and September 2026 VAT returns; NHS prescription income of approximately £0.36 million for September 2026, which is expected to be received as an advance payment on 9 October 2026; estimated manufacturer rebates receivable of approximately £0.59 million on GLP-1 medication purchased in September and October 2026; and medication stock at cost of approximately £0.62 million. The net proceeds of the £5m placing, received on 24 September 2026, are being applied as set out in the announcement of 21 September 2026, principally to acquire sufficient stock to meet the growth in orders. These figures are unaudited.

Working capital facility

As announced on 21 September 2026, the Company is seeking a facility to fund the working capital cycle described previously. The Company has received one indicative term sheet, from a non-bank lender, for funding of £8 million and discussions are continuing with UK clearing banks and specialist lenders regarding a facility secured on the Group’s receivables. The Board intends to negotiate terms with each party before deciding which option to pursue. No agreement has been entered into and there can be no certainty that a facility will be agreed or as to its final terms. The Company will update the market as appropriate.

No fundraising

The Company confirms that no equity fundraising has been agreed and none is planned. The £5 million placing completed on 24 September 2026 was predominantly taken up by existing shareholders, together with institutional and other investors, and settled in full.

Managing Rapid Growth

MedPal continues to experience exceptional growth. On Monday 5 October 2026, New Health alone dispensed over 2,300 private prescription orders in a single day, with a total order value of approximately £0.3 million.

The Group manages its growth closely within its cash flows. New Health spends money to acquire each new customer on their first order, through marketing and introductory pricing. Discounting the first order is standard practice among the leading digital weight management providers and is not unique to MedPal. New Health's new.co.uk acquisition spend is discretionary, can be adjusted at any time and is expensed as it is incurred. From the second order onwards, there is no acquisition cost. Since July 2026, repeat orders at every order cycle have generated a positive margin after the cost of medication, and that margin increases from the second order onwards. As more customers reach their second and later orders, the Board expects repeat orders to make a growing contribution to the Group's cash flows.

Why a general meeting is being called

The authorities to allot shares granted at the Company’s annual general meeting on 30 March 2026 have been exhausted and warrants (the “Warrants”) are due to be issued to Clear Capital Markets Limited as set out in the announcement of 6 October 2026. The general meeting is being called to restore the ordinary authorities that a company of MedPal’s size would normally hold until its next annual general meeting, such that the Warrants can be issued and also to give the Company the flexibility, should it be necessary, to raise further funds or to issue shares as consideration for an acquisition, should an opportunity arise, before its next annual general meeting. Seeking that flexibility does not mean that any fundraising has been agreed or is planned. The resolutions will be in the standard form and the circular will be posted by 9 October 2026.

Jason Drummond, Founder and Chief Executive Officer, commented:

“The business continues to grow at pace, with New Health dispensing more than 2,300 prescription orders on Monday alone. We recently raised £5 million, hold cash, near cash and stock of approximately £6.4 million and have no plans to raise equity. We have also received an indicative term sheet for an £8 million working capital facility, with other options under review. The general meeting is housekeeping, restoring the normal share authorities we need to operate the Company and grant the broker warrants announced on 6 October. The numbers speak for themselves.”

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