AIM share code: SKIN

Integumen PLC

("Integumen" or "Company")

Unsecured Loan Facility Agreement with Cellulac Limited

The Company has today announced its audited results for the year ended 31 December 2019.  As reported, 2019 was another transformational year for Integumen.  Building on an already successful business model, better than expected sales growth from higher revenues per client, lower management overhead from disposal of non-performing assets, and expansion into new areas requiring an increase of both employees and capacity, have set the business on a strong footing for 2020.  At the year end (31 December 2019) the Company had cash balances of £1.2m.  Managing working capital while rapidly growing is a delicate balance. Since the year end there have been the following developments:

·      Labskin laboratories, York, UK, increased size from 3,000 to 6,000 square feet[i].

o  Working capital to support £2m confirmed orders in by the end of March.

o  Investment of £250,000 to ramp-up production of Modern Water's reagent bacteria under 3-year agreement.

·    New employees joined the Company during the COVID19 lockdown due to increased demand.

·    Doubling of production capacity of Modern Water's reagent bacteria[ii]

·    Miniaturisation of RAWTest AI equipment for SARS-CoV-2[iii] in wastewater and dental clinics at University of Aberdeen containment level 3 for development.

In order to give the Company some additional flexibility to manage this growth, the Board has entered into a £400,000 loan facility ("Loan") with Cellulac Limited ("Cellulac"); the principal terms of the Loan are as follows:

Currently there is no intention to draw down under the facility, which has been put in place to provide additional flexibility, if needed, to meet current and expected demand over the coming months.

Related Party Transaction

Cellulac is a subsidiary of Cellulac PLC  and is treated as a related party under the AIM Rules for Companies ("AIM Rules"), as both Gerard Brandon and Camillus Glover, directors of Integumen, are directors of Cellulac Limited and shareholders and directors of Cellulac PLC.  As such, Messrs Brandon and Glover  are not regarded as independent and have taken no part in the Board's consideration of the terms of the Loan with Cellulac Limited.  Ross Andrews, Chairman, and Fionan Murray, Operations Director, are regarded as independent directors ("Independent Directors") for the purpose of Rule 13 of the AIM Rules. Integumen owns 9.35% of Cellulac's issued share capital.

The Independent Directors, having consulted with SPARK Advisory Partners Limited, the Company's Nominated Adviser, considers that the terms of the Loan to be fair and reasonable in so far as shareholders are concerned.

Contacts

About Integumen plc

Integumen is a scientific research and AI-as-a-Service company focused on production and analysis of bacteria, virus and toxins utilising artificial intelligent data analytics in regulatory technology, from scientifically proving the impact of skincare product claims on skin microbiome for top 10 global cosmetic company clients to remotely detecting water contamination in real-time.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.