Equity Fundraise

18 October 2024

Intuitive Investments Group plc

("IIG" or the "Company")

Equity fundraise of £6.2 million

Funds to support acceleration of Hui10 roll out in China

Intuitive Investments Group plc (SFS:IIG), advised by the recently appointed Zeus Capital Limited, is pleased to announce it has raised £6.2 million by the issue and allotment of 4,624,840 ordinary shares of 10 pence each ("Ordinary Shares"). These Ordinary Shares will be issued for cash at a price of £1.33 per share being a premium of 1.5% to mid-market price as of the close of business on 17 October 2024. The proceeds of the issue will be invested in Hui10 Inc. ("Hui10") to accelerate the rollout of Hui10's products and services in China

Hui10 has made significant progress since IIG's investment in October 2023 and is currently delivering it's PELT (Points Exchange for Lottery Tickets) platform nationally in association with the National Sports Lottery, through Hui10's contracts with companies including Qunar and Alibaba's ErLeMa. HongBao is operating in Hebei province with China Mobile, with further contracts in the pipeline. Furthermore, its POSLOT scratchcard operation is expanding under the UGO platform which is currently being piloted and is due to commence its roll out in November 2024.

The roll out of terminals is on track with over 1,500 HongBao terminals now deployed, giving the business majority coverage in Hebei province, and over 2,000 Lucky World shops connected. Hui10 has opened its first two Lucky World flagship Sports Lottery stores in Shijiazuang and Handan, which are co-branded with China State Farms and China Mobile, with further stores opening in the coming months. 

The business remains on target to deliver its strategic roadmap to digitise the lottery in China and transform the lottery store network through Lucky World.

As part of the fund raise Giles Willits, Chief Investment Officer of IIG purchased 75,190 shares, taking the total number of shares he holds to 269,189, representing 0.13% of the Company's issued share capital, post admission of the new Ordinary Shares. 

The new Ordinary Shares constitute 2.2% of the Company's currently issued share capital. Application has been made for the new Ordinary Shares, which will rank equally with the existing Ordinary Shares of the Company, to be admitted to trading on Specialist Fund Segment of the Main Market, becoming effective in accordance with the admission and disclosure standards of the London Stock Exchange. It is expected that admission will become effective and dealings in new Ordinary Shares will commence at 8:00 a.m. on or around 21 October 2024 ("Admission").

Following Admission, the Company's issued share capital will consist of 206,918,006 Ordinary Shares. Since the Company currently holds no shares in treasury, the total number of voting rights in the Company will be 206,918,006. Shareholders may use this figure 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.

Sir Nigel Rudd, non-Executive Chairman, said:

"I am delighted to welcome our new investors, who join us at a very exciting time as we focus on the continued growth of Hui10 as it capitalises on the significant opportunity ahead in digitalising the Chinese lottery.

Hui10 has made great strides in the delivery of its strategy in the past twelve months. I am confident that the business is well-placed to deliver significant revenue growth and substantial shareholder value."

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About Intuitive Investments Group plc

IIG is an investment company seeking to provide investors with exposure to a portfolio concentrating on fast growing, high potential Technology and Life Sciences businesses operating predominantly in the UK, continental Europe, the US and APAC, utilising the Board's experience to seek to generate capital growth over the long term for shareholders.

About Hui10

Hui10 is a technology company with interests in two operating businesses, Huishi Dehua and Huishi Chunyuan ('Lucky World'), involved in the digital transformation of the Chinese lottery. Huishi Dehua enables the market expansion of the Chinese lottery through its proprietary technology platform. Huishi Dehua is integrated into China's national card settlement system and payment platform, UnionPay. Hui10 holds a 33% share in Huishi Dehua. Lucky World is an ecommerce platform which provides China's existing lottery shops access to a wider fast-moving consumer goods product offering. Hui10 owns 60% of Lucky World.