LST Light Science Technologies Holdings Plc

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) 596 / 2014 WHICH FORMS PART OF UNITED KINGDOM LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Light Science Technologies Holdings plc

("LSTH", "Light Science", the "Company" or the "Group")

Award of Product Development Grant Funding

Light Science Technologies Holdings plc (AIM: LST), comprising three divisions: controlled environment agriculture ("CEA"); contract electronics manufacturing ("CEM") and passive fire protection ("PFP"), is pleased to announce that it is participating in a 12 month £299,748 collaboration, funded by The Department for Environment, Food and Rural Affairs (Defra) and Innovate UK's Transforming Food Production Challenge. Light Science Technologies Ltd will receive a grant worth £188,251 over the duration of the programme.

The Company-led project, "SensorGROW: an intuitive, cost effective and scalable precision growing platform, powered by a network of unified agri-sensor nodes", consortium includes Bridge Farm,  a leading UK horticultural expert, and UK grower Zenith Nurseries. The consortium will deliver this 12-month industrial research project, focussing on extending LSTH's existing SensorGROW air zone sensor to provide root zone data via a robust TRL7 technology platform through design refinement, prototyping, and a real world 4-month technical feasibility assessment. In the report titled "Smart Agricultural Market Size" by Global Market insights the current market estimates for cumulative smart agriculture sales growth for the nine years from 2023 to 2032 is expected to be $55bn with a 12% CAGR*.

Within the 10 million m2 of protected growing environments (polytunnels, glasshouses, CEA and vertical farms), cultivation processes remain dominated by conventional, and inefficient crop husbandry methods, with labour, energy, and fertilizers/chemicals being the top three expenses for growers. The collaboration will enable the SensorGROW product to increase productivity by eliminating manual readings and field walks, and support resilience by detecting climate issues, crop diseases, and pests sooner. Furthermore, SensorGROW can enhance the sustainability position of the Agriculture industry by using resources (energy, fertilisers, etc.) in an effective, targeted manner. With SensorGROW and LSTH's grow lights, year-round growing becomes technically and commercially viable. Moving towards 24 hour growing times and increasing crop yields will have a significant economic benefit for growers.

Bridge Farms is a leading UK horticultural plant expert with decades of innovation since 1988. Its state-of-the-art facilities and glasshouses combine leading edge technology and advanced horticultural science. Its role will be to participate in the assessment of technical feasibility and provide input on end-user designs.

Zenith Nurseries is a commercial-scale producer of fine leaf salads with 16 multispan polytunnels and 42+ years of farming and agronomy experience. Its role will be to input on the End-user design and needs and gives access to growing facilities for demonstration and prototype testing. This project is Zenith's second collaboration with Light Science Technologies Ltd so continues the close working relationship that has already been cultivated.

Simon Deacon, Chief Executive Officer of LSTH, commented: "We are extremely excited to be part of this consortium. There is growing need for innovative solutions that will help increase food security and crop yields and we are delighted to be working with a range of partners that are at the forefront of change and providing welcome solutions to global cultivation challenges.

"Since launching SensorGROW in June 2022 we have made great strides in developing the technology. This collaboration creates the perfect platform for us to further develop the technology, with the aim of empowering farmers to enhance resource management, saving costs on water, nutrients, fertilizers, and energy, while simultaneously increasing yields and cultivating healthier crops."

* Smart Agriculture Market Size & Share, Growth Report 2032 (gminsights.com)

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Notes to Editors:

About Light Science Technologies Holdings plc (www.lightsciencetechnologiesholdings.com)

Light Science Technologies Holdings plc operates through three divisions: controlled environment agriculture ("CEA"); contract electronics manufacturing ("CEM"); and passive fire protection ("PFP"). The company is involved in the design, manufacturing, and installation of products and customized solutions spanning various industry sectors, including commercial horticulture, pest control, lighting, audio, gas detection, and fire protection. With a focus on addressing global challenges related to food security, climate change, and fire protection, the Group is committed to developing robust solutions in these rapidly growing market sectors.

LSTH is the holding company for Light Science Technologies Ltd ("Light Science Technologies") and Tomtech (UK) Limited ("Tomtech") in the CEA division; UK Circuits and Electronics Solutions Limited ("UK Circuits") in the CEM division; and LSTH IFB Limited ("LSTH IFB") in the PFP division.

Controlled Environment Agriculture

The Group's tailored solutions encompass control systems, grow lights, sensor technology, venting, and irrigation systems, catering to both UK and global customers. Key markets include indoor, vertical, glasshouses, polytunnels, and medicinal farming. Driving factors comprise global food and water shortages, a growing population, government policies promoting sustainable growth methods, heightened scrutiny of food production's impact on climate change, and a shift away from processed foods. Key markets span the Americas, Australasia, and select locations in the Middle East.

The sensorGROW technology enables real-time monitoring of essential air zone growing factors such as carbon dioxide, air humidity, air pressure, air temperature, and light. In development, it aims to extend monitoring to soil temperature, soil moisture, and soil electroconductivity. This empowers farmers to enhance resource management, saving costs on water, nutrients, fertilizers, and energy, while simultaneously increasing yields and cultivating healthier crops. Learn more here https://lightsciencetech.com/sensorgrow/ . The nurturGROW sustainable grow lighting product range, applicable to greenhouses, vertical farming, polytunnels, and medicinal plants, addresses a robust market with an anticipated global worth exceeding US$6.5 billion by 2026. Explore solutions here https://lightsciencetech.com/solutions/greenhouse/

Through Tomtech, the Group stands out as a UK leader in control systems for commercial greenhouses and polytunnels. Tomtech enables growers in optimizing and automating cultivation environments, leading to superior crop growth. The product range includes control systems, software, irrigation, lighting, sensors, and venting, applicable across various crops, ultimately improving yields and profitability. Discover more here https://www.tomtech.co.uk/

Contract Electronics Manufacturing (https://www.ukcircuits.co.uk/)

UK Circuits serves as the Group's profitable and revenue-strong CEM-focused division. It excels in designing, procuring, and manufacturing high-quality CEM products, with a specialization in Printed Circuit Boards. These products find application across diverse sectors such as audio, automotive, electronics, gas detection, lighting, pest control, telecommunications, and, more recently, in the CEA market.

Passive Fire Protection (https://injectafirebarrier.com/)

LSTH IFB offers a practical and cost-effective solution to rectify non-compliant public and private buildings, spanning residential, commercial, and industrial sectors, with regard to fire safety regulations-a challenge addressed by a £5.1 billion allocation from the UK government. Serving as the UK's premier independent approved installer, LSTH IFB utilizes the ground-breaking Injectaclad fire-resistant graphite barrier system. This system is retroactively installed within building cavities, reinstating fire-resistant performance and containing the spread of fire and smoke compliant with regulatory requirements. This innovative solution stands out as an appealing alternative to the more costly and disruptive method of removing external facades and installing traditional fire barriers. With a proven track record in the passive fire protection market and a robust sales pipeline, LSTH IFB targets a UK market potentially valued at up to £50 billion.