Placing to raise £5m & Notice of General Meeting

PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions, is pleased to announce a conditional Placing (the "Placing") to raise gross proceeds of approximately £5.0 million through the issue of 16,666,667 new ordinary shares of 1 pence each in the capital of the Company (the "Placing Shares") at a price of 30 pence per Ordinary Share (the "Issue Price"). Admission ("Admission") of the Placing Shares is subject to, inter alia, Shareholder approval at a general meeting of the Company ("General Meeting"), notice of which will be sent to Shareholders shortly.

finnCap Ltd ("finnCap") is acting as nominated adviser and sole broker in connection with the Placing. The Placing has not been underwritten.

Highlights

• Placing to raise aggregate gross proceeds of approximately £5.0 million at a price of 30 pence per Ordinary Share (the "Issue Price").
• Approximately £4.25 million of the Placing proceeds raised from certain VCT investors will be used to fund the Company's continued growth in North America as follows:
  • Increase sales and marketing resources to add more support to North American based channel partner relationships; improve capacity to reduce time taken to on-board and enable new partners; and
  • Expand pr oduct management functions targeting long term improvements in time to go live ("TTGL") for new customers.

The balance of the net proceeds raised will be used for general working capital purposes giving the Company not only a stronger balance sheet and flexibility should it become needed given the COVID-19 pandemic but also to allow the Company to consider potential new expansion opportunities in the future.

• The Placing Shares will represent approximately 39.0 per cent. of the Company's Existing Issued Share Capital.

Commenting on the Placing, James Barham, CEO, said:

"I have been very pleased with our progress in the year to date, during which we have continued to build significant sales growth across both our US and UK operations. This has been underlined recently by the announcement of our second largest ACV contract to date, with a major UK government agency, announced on 17 March 2020.

We are delighted with the support shown in this placing by both existing and new investors which will enable us to capitalise on our current North American expansion, and enable advancements in product management and development to support the long term ambitions of the business globally."

Further information on the Placing is set out below.

General Meeting

A Circular and notice convening the General Meeting, to be held at the offices of the Company at 7 Gamma Terrace, Ransomes Europark, Ipswich, Suffolk, IP3 9FF at 11.00 a.m. on 17 April 2020, will be posted to Shareholders shortly and will be available on the Company's website at www.pcipal.com . The General Meeting will be convened to consider, and if thought fit, approve the Proposals set out in the Circular and notice.

The Directors consider the Placing to be in the best interests of the Company and the Shareholders as a whole. The Directors who hold Ordinary Shares representing in aggregate approximately 3.9 per cent. of the Company's Existing Ordinary Shares, intend to vote in favour of the Resolutions at the General Meeting in respect of their shareholdings.

You are directed to the statements made in relation to the COVID-19 pandemic in Section 10 (headed "COVID-19 (Coronavirus)") set out below. In light of the COVID-19 pandemic, you are strongly advised to vote by proxy and NOT to attend the meeting in person.

For further information, please contact:

About PCI Pal:

PCI Pal is a provider of secure payment solutions for contact centres and businesses taking Cardholder Not Present (CNP) payments. PCI Pal's globally accessible cloud platform empowers organisations to take payments securely without bringing their environments into scope of PCI DSS and other card payment data security rules and regulations.

With the entire product portfolio served from PCI Pal's cloud environment, integrations with existing telephony, payment, and desktop environments are light-touch, ensuring no degradation of service while achieving security and compliance.

PCI Pal has offices in London, Ipswich (UK) and Charlotte NC (USA).