Admission to AIM and First Day of Dealings

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL (EACH A "RESTRICTED JURISDICTION").

16 February 2022

Strip Tinning Holdings plc

("Strip Tinning" or the "Company")

Admission to Trading on AIM and First Day of Dealings

Strip Tinning (AIM: STG), a leading supplier of specialist connectors to the automotive sector, is pleased to announce the admission of its entire issued share capital, being 14,324,324 ordinary shares of 1 pence each ("Ordinary Shares"), to trading on AIM, a market operated by the London Stock Exchange ("Admission").

Admission and dealings in the Ordinary Shares will commence at 8.00 a.m. today, Wednesday 16 February 2022 under the ticker "STG". A further 813,045 Ordinary Shares, following the exercise of EMI options granted by the Company, will be admitted to trading at 8.00 a.m. tomorrow, Thursday 17 February 2022 ("Second Admission"). Following Second Admission, the Company will have a total of 15,137,369 Ordinary Shares in issue.

The Company's AIM admission document (the "Admission Document") is available to view on its website at www.striptinning.com.

IPO Highlights

·    In conjunction with Admission and Second Admission (together the "Admissions"), £11.5 million of gross proceeds have been raised by way of a placing of new and existing Ordinary Shares (the "Placing") at a price of 185 pence per Ordinary Share (the "Placing Price").

·    The Placing has raised gross proceeds of £8.0 million for the Company and £3.5 million for certain selling shareholders who have sold Ordinary Shares as part of the Placing, in each case at the Placing Price.

·    Upon Second Admission, the Company will have a market capitalisation (at the Placing Price) of approximately £28.0 million and a free float of 40.8%.

·    The Directors believe the Placing and Admission will enable the Company to accelerate its growth plans and underpin its early mover advantage in the EV battery sector, further enhance its profile in the markets in which it operates and assist with attracting, retaining and incentivising high calibre employees via participation in the Company's Share Incentive Plan.

·    Singer Capital Markets Securities Limited acted as Sole Bookrunner and Placing Agent and Singer Capital Markets Advisory LLP has been retained as Nominated Adviser and Broker.

·    The ISIN of the Ordinary Shares is GB00BMHN9M05, the SEDOL of the Ordinary Shares is BMHN9M0 and the Company's LEI number is 894500GS6N5D41R6H966.

Use of Proceeds

The net proceeds receivable by the Company pursuant to the Placing are expected to be applied principally to:

·    increase production capacity in line with sales growth;

·    further automate key production processes in order to increase capacity, quality and productivity;

·    augment working capital in support of anticipated future growth;

·    support the Company's ESG programme; and

·    implement a new SAP financial reporting system.

The net proceeds of the Placing will be used for further investment in both Glazing and EV but principally invested by the Company in developing the EV product market opportunity. The EV market is seeing high levels of growth and the Directors believe that this presents significant further opportunities for the Group.

Company Highlights

·    Strip Tinning, founded in 1957 and headquartered in Birmingham, is an established supplier of specialist connectors to the automotive sector.

·    The Group consists of two business lines; Glazing and EV. Over 90 per cent. of the Group's historical sales have been related to Glazing systems by way of busbars for in-screen heating, connectors for heating and antennae, and supplies of tungsten.

·    The Group's expertise, consistent delivery of high-quality products, and commitment to innovation has allowed it to build long-term customer relationships with Tier One automotive glazing manufactures, via which its products reach the majority of global automotive OEMs.

·    The transition of the automotive sector towards EV is providing significant new growth opportunities for the Group, with battery-related products representing the principal opportunity. In 2019, the Group launched 'ST Flex' to focus on these new opportunities, drawing on its experience with flexible printed circuit connectors to provide connectivity and monitoring of the multiple cells in a battery pack and other lightweight, easy to package connector solutions.

·    The Group's Board and senior management team, led by CEO Richard Barton, has over 100 years of combined experience in the global connectors market and the automotive industry.

·    The Group is cash generative and profitable and has shown significant growth over recent years, with revenue growing at a compounded annual growth rate of 8.2 per cent between 2017 to 2021, despite the headwinds of the COVID-19 pandemic and Brexit.

·    The Group's strategy is to remain a leading supplier of specialist connectors for Glazing for all classes of automotive vehicles manufactured worldwide and to become a leading supplier of connector sub-assemblies to the EV market.

Richard Barton, Chief Executive Officer of Strip Tinning, commented:

"Today's admission to AIM is a significant landmark for Strip Tinning and a special day in the Company's evolution. The business continues to go from strength to strength and has come a long way since being founded in 1957, plating wires and coils for general engineering applications in the local Birmingham area.

We are now a leading supplier of specialist connectors to the automotive sector, having established long-term customer relationships with some of the automotive industry's most familiar names. Today's admission provides us with the resources to further enhance our capabilities and continue on our exciting journey.

I would like to take this opportunity to thank the Strip Tinning team for all their hard work over the years and to welcome our new shareholders to the register."

Capitalised terms used in this announcement shall, unless the context provides otherwise, have the same meanings as in the Admission Document.

Enquiries:

Strip Tinning Holdings plc                                                                                                                     Via Alma PR

Richard Barton, Chief Executive Officer                                                                                 

Adam Le Van, Chief Financial Officer

Singer Capital Markets (Nominated Adviser and Sole Broker)                                      +44 (0) 20 7496 3000

Rick Thompson

Will Goode

Alex Bond

James Fischer

Alma PR (Financial PR)                                                                                                  striptinning@almapr.co.uk 

Josh Royston                                                                                                                              +44 (0) 20 3405 0205       

Joe Pederzolli                                                                                   

IMPORTANT NOTICES:

Singer Capital Markets Advisory LLP ("SCM Advisory") has been appointed as nominated adviser and Singer Capital Markets Securities Limited ("SCM Securities" and together with SCM Advisory, "Singer Capital Markets") is acting as sole broker and sole bookrunner to the Company in connection with the Placing and Admissions. Singer Capital Markets, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and no-one else in connection with the Placing and Admissions. Singer Capital Markets will not regard any other person as its client in relation to the Placing and Admissions and will not be responsible to anyone other than the Company for providing the regulatory protections afforded to its clients, nor for providing advice in relation to the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Neither Singer Capital Markets, nor any of its subsidiary undertakings, affiliates or any of its directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions contained in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith and any liability therefore is expressly disclaimed.

This announcement is directed only at persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have professional experience in matters relating to investments and are: (i) if in a member state of the European Economic Area ("EEA"), Qualified Investors as defined in article 2(e) of Regulation (EU) 2017/1129 (the "EU Prospectus Regulation"); (ii) if in the United Kingdom, are Qualified Investors within the meaning of the UK version of the EU Prospectus Regulation which forms part of UK domestic law pursuant to the European Union (Withdrawal) Act 2018  and (a) fall within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (b) are persons who fall within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order or (c) to whom it may otherwise be lawfully distributed  (all such persons together being referred to as "Relevant Persons").

This announcement must not be acted on or relied on by persons who are not Relevant Persons.  Persons distributing this announcement must satisfy themselves that it is lawful to do so.  Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.  This announcement does not itself constitute an offer for sale or subscription of any securities in the Company.

Neither this announcement nor any copy of it may be taken or transmitted, published or distributed, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, the Republic of South Africa, New Zealand, Japan or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, the securities referred to herein to any person in any jurisdiction, including the United States (including its territories and possessions, any State of the United States and the District of Columbia), Australia, Canada, the Republic of South Africa, New Zealand or Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.  The Placing and the distribution of this announcement and other information in connection with the Placing and Admissions in certain jurisdictions may be restricted by law and persons into whose possession this announcement, any document or other information referred to herein comes should inform themselves about and observe any such restrictions.  Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.  Neither this announcement nor any part of it nor the fact of its distribution shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

The securities referred to herein may not be offered or sold, transferred or delivered directly or indirectly, in the United States unless registered under the US Securities Act of 1933, as amended ("US Securities Act") or offered in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act or any other applicable securities laws of the United States and in accordance with any applicable securities laws of any state or other jurisdiction of the United States. The securities referred to herein have not been and will not be registered under the US Securities Act or under the applicable securities laws of Australia, Canada, the Republic of South Africa, New Zealand or Japan. There will be no public offer of the securities referred to herein in the United States, Australia, Canada, the Republic of South Africa, New Zealand or Japan. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, the Republic of South Africa, New Zealand or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, the Republic of South Africa, New Zealand or Japan.

The securities referred to herein have not been and will not be approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Placing or the accuracy or adequacy of this announcement.  Any representation to the contrary is a criminal offence in the United States.

Any subscription for or purchase of securities in the Placing should be made solely on the basis of the information contained in the Admission Document published by the Company in connection with the Placing and Admissions.  No reliance may or should be placed for any purposes whatsoever on the information contained in this announcement or its accuracy, completeness or fairness.  This announcement has not been approved by any competent regulatory authority.

The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares.  Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

Certain figures contained in this announcement have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly with the total figure given.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.

Forward looking statements 

Certain statements in this announcement are or may constitute forward looking statements, including statements about current beliefs and expectations of the Directors. In particular, the words "expect", "anticipate", "estimate", "may", "should", "plan", "intend", "will", "would", "could", "target", "believe" and similar expressions (or in each case their negative and other variations or comparable terminology) can be used to identify forward looking statements. Such forward looking statements are based on the Board's expectations of external conditions and events, current business strategy, plans and the other objectives of management for future operations, and estimates and projections of the Company's financial performance.

Though the Board believes these expectations to be reasonable at the date of this announcement they may prove to be erroneous. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, achievements or performance of the Company, or the industry in which the Company operates, to be materially different from any future results, achievements or performance expressed or implied by such forward looking statements.

Any forward looking statement in this announcement speaks only as of the date it is made. Save as required by law or the AIM Rules, the Company undertakes no obligation to publicly release the results of any revisions to any forward looking statements in this announcement that may occur due to any change in the Board's expectations or in order to reflect events or circumstances after the date of this announcement.

Any forward looking statement in this announcement based on past or current trends and/or activities of the Company should not be taken as a representation or assurance that such trends or activities will continue in the future. No statement in this announcement is intended to be a profit forecast.