Silverwood Brands - Statement re. update on acquisition of Lush stake

DATE: 14 March 2023 

Silverwood Brands plc

("Silverwood" or the "Company")

Update on acquisition of stake in Lush Cosmetics Limited and Cosmetic Warriors

Silverwood Brands plc announced on 12 December 2022 that it had entered into a sale and purchase agreement in respect of a 19.8% stake in each of Lush Cosmetics Limited and Cosmetic Warriors Limited (together referred to as "Lush") for a total consideration of approximately £216.8m, payable in Silverwood shares. The Company further announced on 20 February 2023 that it had received notification from Lush declining to record the transfers of the Lush shares to the Company's wholly owned subsidiary, Cosmic Circles Limited ("Cosmic Circles"), without reason.  The Company confirms that following that announcement, Lush has provided its reasoning for declining to record the share transfers. 

Silverwood rejects the reasons given by Lush management and, alongside Cosmic Circles, it has instructed solicitors to take up the issues with Lush.  Silverwood is comfortable with its position and will continue to take appropriate steps to protect its interests.  In the meantime, Silverwood would like to reiterate to its shareholders that, pending the transfers being recorded, it continues to hold contractual rights of control through an agreement with Andrew Gerrie and Alison Hawksley in respect of the Lush shares, including, but not limited to voting control and participation in General Meetings, and receipt of dividends and distributions. 

Silverwood hopes that the Lush management team will focus on building value for all Lush stakeholders, including minority shareholders such as the Lush Employee Benefit Trusts.

Silverwood continues to invite a constructive and open dialogue with the Lush management team so that all matters can be resolved.

Lush is a manufacturer and seller of fresh handmade skincare goods and cosmetic products operating retail outlets in 48 countries and manufacturing facilities in 6 nations. Lush is a great British success story and Silverwood believes the brand has a continued future ahead of it as an international leader in ethical and sustainable business.

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