PLEXUS MOZAMBIQUE ANNOUNCEMENT

Plexus Cotton Limited (“PCL”) announces that it has concluded the sale of its subsidiary Plexus Mozambique Limitada (“PML”) to FESAP-Sociedade Agricola e Pecuária Limitada (“FESAP”), a wholly-owned subsidiary of Felpinter Textile Industries (“Felpinter”).

In recent years, PML’s operations have faced a number of challenges which have led the Board of PCL to determine that PML would be better served to operate under new ownership. After a complex sale process led by the Board of PML, a full sale, including all its assets and liabilities, of PML to FESAP was completed on the 17th May 2023. The Board of PML is confident that FESAP, with existing cotton growing operations in Mozambique, will be a suitable owner for PML and will be better able to ensure the long-term survival of the business.

As part of this transaction, PCL has agreed that PML can continue to use the Plexus name and trademark for a short period, after which the business will transition to a new corporate identity. PCL believes this arrangement will provide stability and facilitate a seamless experience for all parties involved.

Mr. Nick Earlam, Chairman of PCL commented, “After an ownership stretching back to 2002, I’m happy that we can announce the sale of PML to FESAP. FESAP’s parent company Felpinter have been a long-standing customer of PCL and PML as one of the leading home textile producers in Europe. Opportunities for an integrated field to product approach are significant in today’s market and we are confident that FESAP and Felpinter will be able to materially change the prospects of PML as a producing entity. Following the sale of PML, PCL will focus its future activities on its successful and fast-growing commodity trading business, specific multi-crop agriculture production in Africa and its in-demand global cotton consulting services.”

About PML:

Plexus Mozambique is a large cotton business operating in Cabo Delgado Province in the North of- Mozambique. The business has been long-established in the region and has unrivalled local reach. Historically, the business worked with 80,000 plus smallholder farmers annually, each producing seed cotton in small quantities and the business provides income to meet basic needs for approximately 500,000 people in the region. PML owns two significant cotton processing facilities capable of processing over 45,000 tons of seed cotton annually. The company is headquartered in Montepuez, Cabo Delgado.

About Felpinter:

Felpinter is a vertically structured textile company based in northern Portugal with over 30 years of experience in design and manufacturing of home textile products. The company provides a wide range of products for bath, beach, children, kitchen & table, and bed with creativity, comfort and quality as its main differentiators. Its wholly owned subsidiary FESAP has been active in cotton production in Mozambique for a number of years.

For further information please contact Nick Earlam (Chairman - Plexus Cotton Limited) and Jan Idel (Partner Bowline Advisors) at info@plexus-cotton.com.