Issue of Convertible Loan Notes

Medcaw Investments plc (LSE: MCI ) announces that it has raised a total of £550,000 through the issue of unsecured convertible loan notes (“CLNs” or “Notes”). The facility has a total nominal capacity of £600,000, with £425,000 subscribed in cash and a further £125,000 issued in lieu of fees.

The proceeds of the CLNs will be applied towards supporting the Company’s working capital and capital expenditure requirements. The Notes carry an annual coupon of 6%, which is payable on redemption. In the event of non-payment on redemption, default interest will accrue at a rate of 12% per annum. The Notes are redeemable at par on the first anniversary of issue, or earlier in the event of a material breach, insolvency or other event of default.

On completion of a “Qualifying Transaction” – being an IPO or admission of the Company’s shares to the London Stock Exchange, AIM or another recognised investment exchange requiring the publication of a prospectus – all outstanding Notes will automatically convert into fully paid ordinary shares of the Company at a conversion price of £0.01 per share.

In addition, Noteholders will, upon conversion, be granted warrants to subscribe for one new ordinary share for every two shares received on conversion. The warrants will carry an exercise price of £0.03 per share and will be exercisable for a period of 12 months from the date of grant.

No application has been, or will be, made for the Notes to be admitted to trading on any market.

Medcaw Investments plc

Charlie Wood

Tel +44 (0)203 918 8797