ELEG Electric Guitar Plc

13 December 2024

Electric Guitar PLC

("Electric Guitar" or the "Company")

Liquidation of 3radical Limited

Electric Guitar PLC (LSE: ELEG) announces that, further to the Company's announcement of 28 November 2024 and following a marketing exercise of the business and assets of 3radical Limited ("3radical") (the Group's main operating subsidiary) as a going concern with the assistance of KRE Corporate Recovery Limited ("KRE"), and after a number of enquiries and discussions, no offers for the business as a going concern have been received.

As a result of 3radical's revenues and new business generation being significantly below expectations of the Board and a constraint in capital, the Company is unable to provide further funding to 3radical. The Company's Board had been actively seeking additional capital, but in the event had been unable to secure further investment either to continue to finance 3radical's business, or to pursue its advertising and marketing technology 'buy and build' mission. As a result, 3radical is not able to pay its debts as they fall due and the Board of 3radical has instructed KRE to assist with placing 3radical into creditors' voluntary liquidation ("CVL") later this month. Formal liquidation notices are being prepared and are expected to be issued later today. KRE will now invite offers for 3radical's assets. As a result of the CVL, the Company expects to incur a write-off of approximately £1 million from the loans owed to it by 3radical.

Electric Guitar plc is not a trading company, has no operating revenues and, once 3radical enters CVL, the Company will cease to own, control, or conduct all or substantially all its previous trading business, activities or assets. Therefore, for the purposes of the AIM Rules for Companies (the "AIM Rules"), the Company is expected to be classified as an AIM Rule 15 cash shell upon 3radical entering into the CVL, which is expected to take place following a shareholder meeting of 3radical on or around 23 December 2024 (the "Effective Date"). As such, the Company will be required to make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 or seek re-admission to AIM as an investing company (as defined under the AIM Rules) on or before the date falling six months from the Effective Date, failing which the Company's ordinary shares would then be suspended from trading on AIM pursuant to AIM Rule 40.

The Board of directors of Electric Guitar continues to review options available to the Company including, inter alia, seeking financing to allow the Company to pursue an acquisition strategy. The Company currently has minimal cash balances and known creditors of approximately £1 million. Accordingly, the Company's ordinary shares remain suspended from trading on AIM pending clarification of the Company's financial position and further updates will be provided as appropriate.

A further announcement will be made in due course.

For further information:

Notes to Editors

Electric Guitar PLC (AIM: ELEG) is the provider of first-party data solutions for the marketing and advertising industry, empowering businesses to realise the value of their first-party data. In an era of changing consumer attitudes towards the use of their data, tighter privacy legislation, and the demise of third-party cookies, first-party data is now the key to success in digital marketing. Electric Guitar's strategy has been to acquire and scale businesses that help marketers maximise the value of first-party data by curating, managing, and deploying it, and in doing so making Electric Guitar the industry standard for first-party data solutions. As the first part of this strategy, Electric Guitar acquired 3radical Limited, a company that utilises its Software as a Service platform, 3radical Voco, to enable organisations to engage individuals and request their data directly using interactive digital experiences.

For further information please visit www.electricguitarplc.com.