REG - Medpal AI PLC - Placing to raise £5m

RNS Number : 9523K Medpal AI PLC 03 July 2026  

3 July 2026

MedPal AI plc

("MedPal AI" or the "Company")

Placing to raise £5.0 million

Funding to complete the acquisition of Solid State Technologies Ltd and capture the UK launch of oral Wegovy®

MedPal AI Plc (AIM: MPAL, FRA: Z1N), the UK digital health and AI company, is pleased to announce that it has conditionally raised gross proceeds of approximately £5.0 million (the "Fundraise") through the issue of 142,857,133 new ordinary shares of £0.0002 each (the "Fundraise Shares") at a price of 3.5 pence per share (the "Issue Price"). The Fundraise has been arranged by OAK Securities as sole broker to the Fundraise.

The Issue Price of 3.5 pence represents a 12.5 per cent. discount to the closing mid-market price of 4p per share on 2 July 2026 and a 40 per cent. premium to the price at which the Company raised £3 million in April 2026, reflecting the substantial operational and commercial progress delivered since that time.

In addition, the Company is issuing 10,942,857 new ordinary shares (the "Settlement Shares") in settlement of existing contractual obligations, as set out below.

Highlights

•   Gross proceeds of approximately £5.0 million raised at 3.5 pence per share - a 40 per cent. premium to the April 2026 placing price of 2.5 pence

•   Proceeds fund the acquisition of Solid State Technologies Ltd ("Solid State Technologies"), a profitable electronic Medicines Administration Record ("eMAR") software business, completing MedPal's closed-loop care-home medication platform

•   Positions the Company to capture the UK launch of the oral GLP-1 weight-loss pill (oral Wegovy®), launching in the UK on 6 July 2026, through investment in stock and patient acquisition

•   Strengthens working capital to support record NHS dispensing volumes and continued growth across the Company's vertically integrated platform

•   Strongly supported by institutional and new investors

Use of Proceeds

The net proceeds of the Fundraise will be deployed against two highly strategic, time-sensitive and revenue-generating opportunities, alongside general working capital:

•   Intended acquisition and integration of Solid State Technologies Ltd ("SST") (c.£0.5m subject to formal completion): SST provides the electronic Medicines Administration Records ("eMAR") software layer that sits at the point of care in the care homes with which MedPal Pharmacy has a supply arrangement. Combined with MedPal's robotic dispensing hubs and existing B2B supply relationships, it will complete a MedPal end-to-end platform across prescribing, dispensing, administration and reconciliation - a closed-loop health OS for the care-home sector. SST's latest management accounts (to 31 May 2026), show annualised revenue of c.£843,000 and annualised profit of c.£307,000. SST is to be acquired for a maximum total consideration of £0.5 million.

•   Oral GLP-1 launch - stock and patient acquisition (up to c.£3.0m): the first oral GLP-1 weight-loss treatment, oral Wegovy®, launches in the UK on 6 July 2026. Since its US launch in January 2026, US prescription dispensing volumes have exceeded three million in just over five months, with more than 80 per cent. written for patients new to GLP-1 therapy, according to Novo Nordisk. With a live, marketed weight-loss clinic, a Novo Nordisk supply relationship and a low-cost robotic dispensing platform, the Company intends to invest in stock ahead of anticipated demand and in patient acquisition to secure a large launch cohort. Each active private patient is forecast to generate c.£2,400 of recurring revenue per annum.

•   Working capital and growth (balance): providing operational headroom to support record NHS dispensing volumes, care home portfolio growth and general corporate purposes, including the costs of the Fundraise.

Issue of Shares in Settlement of Fees in lieu of cash

In addition to the Fundraise, the Company is issuing a total of 10,942,857 new ordinary shares of £0.0002 each (the "Settlement Shares") in settlement of existing contractual obligations to certain service providers and consultants. These include 1,200,000 Settlement Shares issued at 2.5p per share to a service provider in respect of £30,000 in line with an existing marketing services agreement. The other Settlement Shares were valued at 3.5p per share. The 1,200,000 Settlement Shares issued at 2.5p per share are subject to a two-month lock-up from the date of issue.

The issue of the Settlement Shares satisfies these obligations in full without utilising the Company's cash resources. Application will be made for the Settlement Shares to be admitted to trading on AIM at the same time as the Fundraise Shares.

Details of the Fundraise

The Issue Price of 3.5 pence per Fundraise Share represents a discount of approximately 12.5 per cent. to the closing mid-market price of 4 pence per Ordinary Share on 2 July 2026 (being the latest practicable date prior to this announcement).

The Fundraise Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared, made or paid after their date of issue.

Application will be made to the London Stock Exchange for the Fundraise Shares and the Settlement Shares (together comprising 153,799,990 new ordinary shares) to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the new ordinary shares will commence at 8.00 a.m. on 8 July 2026.

Following Admission, the Company's issued ordinary share capital will consist of 769,841,026 ordinary shares of £0.0002 each, with one voting right per share. No ordinary shares will be held in treasury. The total number of voting rights in the Company following Admission will therefore be 769,841,026, which figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

The Fundraise is conditional upon, amongst other things, Admission becoming effective.

As part of OAK Securities' engagement, OAK Securities has been granted warrants to subscribe for 8,571,428 new ordinary shares, exercisable at the Issue Price for a period of 36 months from closing of the Fundraise.

Outlook

MedPal AI is entering the next phase of its growth with significant operational momentum. The current momentum of the Company's strategy has brought forward opportunities the Board had expected to address later in its plan, and growth is now being driven by three distinct and complementary engines:

•   NHS pharmacy dispensing: record and rising dispensing volumes through the Company's robotic distribution hub, providing scale, cash generation and the lowest-cost fulfilment platform in the UK;

•   Care-home medication platform: the acquisition of Solid State Technologies completes the closed-loop care-home OS, converting transactional pharmacy relationships into sticky, software-led partnerships with recurring revenue; and

•   Private weight-loss clinic (GLP-1): a rapidly scaling, subscription-based clinic, underpinned by direct supply relationships with Eli Lilly and Novo Nordisk, positioned to capture the UK launch of the oral Wegovy® pill on 6 July 2026 from day one.

To drive the near-term marketing strategy around the launch, the Company has appointed Erin Fox as Senior Director of Marketing, who will lead patient acquisition for the launch cohort. Erin brings over a decade of experience leading digital marketing, ecommerce and customer engagement for global retail and consumer brands. She joins from Avolta, the world's largest duty free retailer, where she led Global Digital, overseeing digital trade and content across 225 ecommerce websites, a loyalty programme spanning 72 countries and 120 social media channels. Erin previously held senior digital and ecommerce roles at Charlotte Tilbury and Harrods.

With the proceeds of the Fundraise, the Board believes MedPal AI is well positioned to move decisively on these opportunities and to build on the substantial momentum established over the past twelve months. The Board looks forward to updating the market on further progress over the coming weeks and months.

Jason Drummond, Chief Executive of MedPal AI, commented:

"Raising £5 million at a 40 per cent. premium to our April placing price is a strong endorsement of the progress MedPal has made and of the two opportunities in front of us.

"The acquisition of Solid State Technologies completes our closed-loop care-home platform - prescribe, dispense, administer and reconcile on a single system - and brings established, profitable, recurring software revenue into the Group. And with the oral Wegovy pill launching in the UK on 6 July, we have a live clinic, a Novo Nordisk supply relationship and the dispensing infrastructure to capture what has been one of the strongest pharmaceutical launches on record in the US.

"This funding gives New Health (new.co.uk), our weight-loss clinic, the firepower to compete at the highest level of the UK market, alongside MedExpress, Voy, Juniper and Hims - with a vertically integrated dispensing platform behind it that we believe none of them can match.

"With three engines of growth now firing together - NHS dispensing, our care-home platform and our weight-loss clinic - and Erin Fox joining from Avolta to lead our digital marketing into the launch, MedPal is no longer taxiing to the runway. We are in the air, travelling at speed, and climbing.

"I would like to thank our existing shareholders for their continued support and welcome our new investors. We are moving decisively, with capital in hand, at exactly the right moment."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). The Directors of the Company are responsible for the contents of this announcement.

Enquiries:

About MedPal AI

MedPal AI is a UK-based digital health company building the MedPal Health OS - a vertically integrated, closed-loop platform spanning AI wellness, clinical services, and automated pharmacy fulfilment. Its core app aggregates data from over 100 wearable devices and health apps (including Apple Health, Fitbit, Garmin, and Whoop) into a unified health profile, offering personalised, non-clinical lifestyle guidance through its AI wellness coach and acting as the consumer front door to the Company's clinical and pharmacy services.

Through its wholly owned subsidiary MedPal Limited, the Company operates a 24/7 AI-powered automated pharmacy distribution centre, providing nationwide NHS and private prescription services. The facility leverages BD Rowa VMAX robotic dispensing technology integrated with AI triage to deliver rapid, cost-effective medication fulfilment with same-day and next-day delivery capabilities.

MedPal AI has a partnership agreement with Epassi UK Limited, which will, for a limited time, grant exclusive, zero-cost access to the MedPal AI app across Epassi's network of 11M+ employees at major firms. The Company's LEI is 984500EDP8B0A14CBA61.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events.

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