Satsuma Technology Plc — Update on Proposed Reduction of Capital

Satsuma Technology PLC is winding down and returning cash to shareholders after liquidating assets.

Risk flags

• ●Court approval is still required for the Reduction of Capital and the return of funds to shareholders. If the court does not grant approval on the expected dates (14 August and 8 September 2026), the process could be delayed or altered, directly impacting the timeline and certainty of the payout.
• ●The announcement provides no information on any residual liabilities, contingent claims, or potential disputes that could arise post-asset sale. If undisclosed liabilities exist, they could reduce the cash available for distribution or delay the process.
• ●There is no disclosure regarding the treatment of outstanding warrants (2,109,254,848 Ordinary Shares) after the capital return and listing cancellation. Uncertainty around warrant holders' rights or obligations could create complications for the wind-down process.

Bottom line

This announcement signals the effective wind-down of Satsuma Technology PLC, with the company having sold all its Bitcoin holdings and preparing to return £30.7 million to shareholders, subject to court approval. The process is transparent and supported by detailed figures, but there is no ongoing business or future operational plan disclosed. The only remaining hurdles are procedural—court approval and administrative settlement—since all asset sales are complete. Investors should be aware that the company will delist and cease trading, and the only value left is the capital return. The single most important takeaway is that this is a liquidation event, not a going concern, and the investment case is limited to the receipt of the stated capital repayment.

Announcement summary

(LSE: SATS) Satsuma Technology PLC announced that following shareholder approval at the General Meeting on 20 July 2026, the Company has issued and allotted 11,235,874,700 B Shares of £0.002734 each. If the Court approves the Reduction of Capital, the aggregate amount to be returned to Shareholders will be £30,718,881.43, being £0.002734 per B Share. The Company disposed of all its Bitcoin, selling 669.4867 BTC between 24 July 2026 and 31 July 2026 at a volume-weighted average realised price of £47,667 per BTC, generating total proceeds of £31,912,395. Following the disposal, the Company's cash at bank at the Record Time was £35,324,953, with T&T Costs revised downwards to £2,600,000 and £2,000,000 provided for working capital. The date for the Court hearing in respect of directions is now expected to be 14 August 2026, with the hearing to confirm the Return of Capital on 8 September 2026 and cancellation of the Company's listing expected on 14 September 2026. Settlement of the Capital Repayment is expected on or before 28 September 2026. The total number of voting rights in the Company is 11,235,874,700.

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