On 1 February 2023, Capricorn Energy announced the appointment of six new members of the Board of Directors and the intention of the Board to conduct a comprehensive strategic review of Capricorn’s business and potential directions for the future of the Company. On the same day, the general meeting convened in connection with the proposed combination (the “NewMed Transaction”) between the Company and NewMed Energy was adjourned until 22 February 2023.

In conducting the Strategic Review, the Board is mindful of the overwhelming mandate it has been given by shareholders and, in that context, the views that proxy advisory agencies and a significant number of shareholders have expressed in relation to the NewMed Transaction, including their unwillingness to support it on its current terms. An immediate priority has therefore been to review the Board’s position towards the NewMed Transaction.

Based on its work to date in respect of the Strategic Review and taking into consideration the views expressed by shareholders on the NewMed Transaction, the Board has resolved to advise shareholders to vote against the NewMed Transaction. As a consequence of this decision, the Company and NewMed have mutually agreed that the business combination agreement (“the BCA”) entered into between the Company and NewMed on 29 September 2022 be terminated with immediate effect.

The Board believes this action is necessary to enable the consideration of all potential strategic options for the Company, including the material return of capital to shareholders and potential engagement with respect to alternative options.

KeyFacts Energy: Capricorn Energy UK country profile   l   KeyFacts Energy: NewMed Energy Israel country profile

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