JZCP Jz Capital Partners Limited

JZ CAPITAL PARTNERS LIMITED (the "Company" or "JZCP")
(a closed-ended investment company incorporated with limited liability under the laws of Guernsey with registered number 48761)
LEI 549300TZCK08Q16HHU44

Disposal of Interest in US Micro-cap Portfolio Company

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014, WHICH FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

19 December 2022

JZ Capital Partners Limited, the London listed fund that has investments in US and European microcap companies and US real estate, is pleased to announce that Deflecto Holdings, LLC ("Deflecto Holdings"), one of the Company's US micro-cap co-investments, has agreed to sell its interest in one of its portfolio companies (the "Disposal").

It is expected that, in connection with the Disposal, JZCP will receive (a) initial proceeds of approximately US$54.6 million payable upon closing, and (b) up to a further approximately US$1.1 million which will be payable post-closing pursuant to a standard escrow arrangement that is subject to customary final closing adjustments. The Company intends to use the proceeds it receives in connection with the Disposal towards the implementation of the aims of the Company's investment policy and for general corporate purposes.

The total value attributable to the Disposal, taking into account the proceeds of the Disposal, amounts to approximately US$55.7 million. Combined with JZCP's continued interest in Deflecto Holdings' other investments, the Disposal represents an uplift of approximately 43 per cent. to the net asset value attributable to JZCP's interest in Deflecto Holdings of US$45.4 million as at 31 August 2022.

It is noted that completion of the Disposal remains subject to certain conditions, including the federal premerger notification program established by the Hart-Scott-Rodino Act. Whilst it is expected that completion of the sale will occur, subject to the satisfaction of the relevant conditions, around 31 January 2023, there can be no assurance that the aforementioned conditions will be satisfied and, accordingly, that completion of the Disposal (or receipt by the Company of the Disposal proceeds) will occur. As such, the Company will make further announcements at the appropriate time regarding the status of completion of the Disposal and the receipt by the Company of the net proceeds related thereto.

Market Abuse Regulation

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

The person responsible for arranging the release of this announcement on behalf of the Company is David Macfarlane, Chairman of JZCP.

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Important Notice

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements relate to matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, policies and the development of its strategies may differ materially from the impression created by the forward-looking statements contained in this announcement. In addition, even if the investment performance, result of operations, financial condition, liquidity and policies of the Company and development of its strategies, are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. These forward-looking statements speak only as at the date of this announcement. Subject to their legal and regulatory obligations, each of the Company, Jordan/Zalaznick Advisers, Inc. and their respective affiliates expressly disclaims any obligations to update, review or revise any forward-looking statement contained herein whether to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based or as a result of new information, future developments or otherwise.