Northbridge Industrial Services : Placing of 2 million shares to raise £2.5 million

20 June 2018

Northbridge Industrial Services Plc

Placing of 2 million shares to raise £2.5 million

and adoption of Corporate Governance Code

Northbridge Industrial Services Plc ("Northbridge" or the "Company"), the industrial services and rental company, today announces a placing (the "Placing") of 2 million ordinary shares of 10 pence each (the "Placing Shares") to raise £2.5 million gross of expenses at a price of 125 pence per Placing Share (the "Placing Price") with existing institutional shareholders. The Placing is not conditional on a general meeting.

Eric Hook, CEO of Northbridge, has subscribed for 23,631 Placing Shares in the Placing to the value of £29,539 and Western Selection Plc, of which David Marshall, a Non-executive Director of the Company, is non-executive chairman, has subscribed for 76,368 Placing Shares in the Placing to the value of £95,460.

Use of proceeds

Approximately £1.05 million (NZ$2.0 million) of the proceeds from the Placing will be used to pay the outstanding deferred consideration (the "Deferred Consideration") due to the vendor of Tasman Oil Tools Limited and Tasman Oil Tools Leasing Limited.

The Deferred Consideration is secured on the Company's property in New Zealand and, as a result of the repayment of the Deferred Consideration, the security on this property will be released.

The balance of the net proceeds of the Placing will be used as working capital in order to prepare for potential further investment in oil field rental equipment, if Northbridge's oil and gas markets maintain their recovery.

Commenting on the Placing, Eric Hook, Chief Executive Officer of Northbridge said:

Details of the Placing

The Company has raised £2.5million (before expenses) through the issue of the Placing Shares at the Placing Price. The Placing Price represents a discount of approximately 3.47 per cent. to the closing mid-market price of 129.5 pence per ordinary share on 19 June 2018, being the last business day prior to the publication of this announcement. The Placing Shares will represent approximately 7.17 per cent. of the enlarged share capital (excluding any treasury shares).

Pursuant to the terms of the Placing Agreement, Stockdale Securities Limited ("Stockdale"), as agent for Northbridge, has procured placees for the Placing Shares at the Placing Price.

The obligations of Stockdale under the Placing Agreement are conditional, inter alia, upon Admission having occurred by 8.00 a.m. on 22 June 2018 (or such later time and/or date as may be agreed, being no later than 31 July 2018), and there being prior to Admission no material breach of the warranties given to Stockdale.

Stockdale may terminate the Placing Agreement in specified circumstances (including for breach of warranty at any time prior to Admission, if such breach is reasonably considered by Stockdale to be material in the context of the Placing) and in the event of a force majeure event occurring at any time prior to Admission which will or may be materially prejudicial to the Company or to the successful outcome of the Placing. If the conditions of the Placing Agreement are not fulfilled on or before the relevant date in the Placing Agreement, placing monies will be returned to placees without interest as soon as possible thereafter.

Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on Friday 22 June 2018.

Total voting rights

Therefore the figure of 27,899,602 ordinary shares should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Corporate Governance

Northbridge confirms that it will adopt the QCA Corporate Governance Code from 28 September 2018 in full, and will comply or explain in detail, any departure from that code and the reasons for doing so.

-Ends-

For further information

Northbridge Industrial Services Plc01283 531645

Eric Hook, Chief Executive Officer

Iwan Phillips, Finance Director

Stockdale Securities Limited (Nominated Adviser and Broker)020 7601 6100

Robert Finlay / Antonio Bossi / Henry Willcocks

Buchanan 020 7466 5000

Charles Ryland / Stephanie Watson/ Catriona Flint

About Northbridge:

Northbridge Industrial Services plc hires and sells specialist industrial equipment. With offices or agents in the UK, USA, The Middle East, Belgium, Germany, France, Australia, New Zealand, Singapore, China, Brazil and South Korea, Northbridge has a global customer base. This includes utility companies, the oil and gas sector, shipping, banking, mining, construction and the public sector. The product range includes loadbanks, transformers, and oil tools. Northbridge was admitted to AIM in 2006 since when it has grown by providing a high level of service, responsiveness and flexibility to customers. It has grown by the acquisition of companies in the UK, Dubai, Australia, Belgium, New Zealand and Singapore and through investing further in those acquired companies to make them more successful. Northbridge continues to seek suitable businesses for acquisition across the world.