Belluscura plc (UK)…Confirmation of Issue Price for Placing on the AIM market of the London Stock Exchange

24 May 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM, THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

This announcement is an advertisement and not an admission document or a prospectus. This announcement is not and does not constitute or form part of, and should not be construed as, an offer of securities for subscription or sale in any jurisdiction nor a solicitation of any offer to buy or subscribe for, any securities in any jurisdiction, nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This announcement does not constitute a recommendation regarding any securities. Prospective investors should not subscribe for or purchase any securities referred to in this announcement except in compliance with applicable securities laws and regulation and on the basis of the information in the final admission document (“Admission Document”) intended to be published by Belluscura plc (“Belluscura” or the “Company”), and any supplement thereto, in connection with the placing of ordinary shares of £0.01 each (“Ordinary Shares”) and the proposed admission of the entire issued and to be issued ordinary share capital of the Company to trading on AIM, a market operated by the London Stock Exchange plc.

Belluscura PLC

(“Belluscura” or the “Company”)

Confirmation of Issue Price for Placing

Designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators
to raise £17.5 million, with an expected pre-money market capitalisation of £50.96 million

LONDON, U.K. AND PLANO, TX, U.S. (24 May 2021). Belluscura plc (AIM:BELL), a leading medical device developer focused on lightweight and portable oxygen enrichment technology, announces that it has received very strong levels of support for the placing and subscription. First day of dealings will commence on Friday 28 May.

Key Fundraising Statistics:

Total Fundraising Size¹: £17.5 million
Issue Price per Belluscura Share: 45 pence
Number of Existing Belluscura Shares: 74,351,847
Number of VCT/EIS Placing Shares: 14,192,554
Number of General Placing Shares: 24,051,890
Number of Subscription Shares: 644,444
Enlarged issued share capital on Admission: 113,240,735
Market capitalisation at the Issue Price²: £50.96 million

Notes:

¹ Before estimated commissions, fees and expenses payable by the Company of approximately £1.4 million.
² The market capitalisation of the Company at any given time will depend on the market price of the Ordinary Shares at that time.
There can be no assurance that the market price of an Ordinary Share will equal or exceed the Issue Price.

Belluscura focuses on novel oxygen-based treatment platforms that can be adapted and applied in a wide range of
markets beyond those traditionally applicable to a single product or product line.Its range of portable products will
be lighter / more adaptable / have higher O₂ capacity by weight than existing oxygen enrichment products in their
respective class. Whilst potentially useful for recovering COVID patients, it has a wide range of use for sufferers of
pneumonia / COPD (i.e. asthma/ emphysema /chronic bronchitis) and other respiratory illnesses. It received 510(k)
clearance from the US Food & Drug Administration (FDA) in March 2021 for its X-PLO₂R range of oxygen
concentrators, which will be launched in 2021.

The Company has a registered office in the UK. Its subsidiary, Belluscura LLC, is based in Plano, Texas, USA. The USA
is the Company’s main country of operation.

Admission Document

The Admission Document (when published) will be made available on the Company’s website shortly, at
belluscura.com/investors.

Further announcements will be made as appropriate.

For further information please contact:

Belluscura plc

Robert Rauker, Chief Executive Officer                                                                                                           www.belluscura.com
Anthony Dyer, Chief Financial Officer                                                                                                               via Walbrook PR

SPARK Advisory Partners Ltd (NOMAD)   

Neil Baldwin                                                                                                                                                 Tel: +44 (0)20 3368 3550

Dowgate Capital Ltd (Broker & Bookrunner)

James Serjeant / Nicholas Chambers                                                                                                      Tel: +44 (0)20 3903 7715

Walbrook PR Ltd (Media & Investor Relations)                         Tel: +44 (0)20 7933 8780 or belluscura@walbrookpr.com

Paul McManus / Sam Allen                                                                             Mob: +44 (0)7980 541 893 / +44 (0)7748 651 727

About Belluscura plc (www.belluscura.com)
Belluscura is a UK medical device company focused on developing oxygen enrichment technology spanning broad
industries and therapies. Our innovative oxygen technologies are designed with a global purpose: to create
improved health and economic outcomes for the patients, healthcare providers and insurance organisations.

Background & history
Belluscura was established in the UK in December 2015 with the object of commercialising intellectual property in
the medical device space. The Company is currently focused on devices and treatments involving enriched oxygen.

The Company has raised approximately $11.7 million since 2018 in a number of fundraising rounds in order to
develop and commercialise the Company’s product portfolio.

In February 2017, Belluscura entered into a co-exclusive license and development agreement with Separation
Design Group LLC (“SDG”) of Waynesburg, Pennsylvania, to jointly develop and commercialise the X-PLO₂R™
portable oxygen concentrator, a device that weighs less than 1.5kg, yet can deliver up to 800ml per minute of pulse
dose enriched oxygen to a patient prescribed long term oxygen therapy. This agreement was updated in March
2021 to be an exclusive licence and development agreement.

SDG owns patents and patent applications covering novel oxygen enrichment technologies and treatment devices
and methods. Through joint development efforts with SDG and the licence, Belluscura now either owns or
exclusively licenses a total of 26 patents and applications relating to oxygen enrichment devices and treatments.

The Belluscura and SDG development relationship also includes the development of additional products, the X-PLO₂R CX™ and the X-PLO₂R DX™ portable oxygen concentrators. The X-PLO₂R CX is expected to produce theequivalent of 4 litres pulse dose oxygen and 750ml continuous flow oxygen. The X-PLO₂R DX is being designed to
produce the equivalent of 6-litres pulse dose oxygen and 2-litres of continuous flow oxygen.

On 2 March 2021 Belluscura received 510(k) clearance from the US Food &Drug Administration (“FDA”) for the XPLO₂R. The Directors do not anticipate requiring additional FDA 510(k) clearances to launch the X-PLO₂R CX and the X-PLO₂R DX portable oxygen concentrators, as it expects to be able to self certify under “substantially equivalent” protocols of the FDA.

Belluscura plans to launch the X-PLO₂R shortly and the X-PLO₂R CX and X-PLO₂R DX within the next 12 months. The Company has a manufacturing agreement to produce the products in the USA. Following a soft launch, the Company plans to appoint distributors in the US to give US-wide coverage; this is expected to occur in the second half of 2021and into 2022. Belluscura will commence International Regulatory clearances during 2021 and 2022 before expanding distribution globally. Following launch in the US, the Company intends, in due course, to pursue commercialisation in the UK, EU, Japan, South Asia, Australia, South America and Latin America.

Belluscura has an experienced executive management team with significant expertise in the medical devices
industry and UK public companies.

The Market
The global respiratory care devices market is estimated to be $23.4 billion in 2021 and expected to reach $28.6 billion by 2024, growing over $1.7 billion per year. (Source: Research&Markets.com – Global Respiratory Care Devices market)

Supplemental Oxygen Therapy Market
Within the respiratory care devices market, the supplemental oxygen therapy devices market was forecast in 2018 to grow by 6 per cent. per year from $3.2 billion in 2021 to $4.2 billion by 2026.

The impact of the COVID-19 pandemic has led to an increase in this growth forecast to 11 per cent. per annum. The market is now forecast to reach $5.7 billion by 2026, an increase of 66 per cent. over the next 5 years. The World Health Organisation (“WHO”) announced on 24 June 2020 that it would be purchasing 184,000 oxygen concentrators, valued at over $100 million, to address oxygen shortages in 120 countries. (Source: Reuters, 24 June 2020 https://www.reuters.com/article/us-health-coronavirus-who-milestone/who-warns-of-oxygen-shortage-ascovid-casesset-to-top-10-million-idUSKBN23V2FG)

As of February 2021, the WHO and partners have distributed over 30,000 concentrators and 40,000 pulse oximeters and patient monitors, reaching 121 countries, including 37 countries that are classified as “fragile”.

Respiratory Diseases
The principal respiratory disease that requires management through the prescription of supplemental oxygen is Chronic Obstructive Pulmonary Disease (“COPD”). In addition, other respiratory diseases where symptoms are alleviated through supplemental oxygen include Coronavirus, Pulmonary Fibrosis and Cystic Fibrosis.

Chronic Obstructive Pulmonary Disease (“COPD”)

COPD is the name for a group of lung conditions that cause breathing difficulties. These conditions include Emphysema, Chronic Bronchitis and Asthma. COPD typically affects middle-aged or older adults who smoke. The World Health Organisation estimates that 328 million people globally have COPD, of whom 65 million have moderate (Stage 2) or Severe (Stage 3) symptoms.

Although originally more common in men, due to increased smoking among women the disease now affects men and women almost equally. COPD also affects non-smokers, though smoking is the cause of 90 per cent. of COPD cases.

Symptoms of COPD comprise breathlessness, a persistent chesty cough, frequent chest infections and persistent wheezing. COPD is progressive and incurable, and by 2030 it is forecast that it will be the third leading cause of death worldwide.

In the early stages of COPD, the progression of the disease can be slowed by inhalers, tablets and pulmonary rehabilitation. As symptoms become more severe, oxygen enrichment products are used to prevent the level of oxygen in the blood falling to a dangerously low level.

COVID-19
The use of oxygen concentrators is a cornerstone treatment for COVID-19, with the WHO indicating that it intends to purchase over 100,000 units to distribute globally. The NHS is recommending oxygen for COVID-19 patients that are breathless and have blood oxygen saturations less than 94 per cent.

Although most people recover from COVID-19 after a short period, for some people, the symptoms can last for considerably longer. According to the NHS, long Covid symptoms include shortness of breath which may require the use of oxygen concentration treatment.

Other Respiratory Diseases
Although COPD is the primary disease for which oxygen enrichment products are used, they are also used to alleviate the symptoms of Pulmonary Fibrosis, Cystic Fibrosis and other respiratory disorders. Currently, it is estimated that 1.5 million adults in the US and 3.5 million adults in Europe use supplemental oxygen for these respiratory disorders