AVN.L Regulatory News (AVN)

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

08 February, 2017

Avanti Communications Group plc

Issue of Equity

Avanti Communications Group plc (AIM: AVN, "Avanti" or "the Company"), the satellite operator, announces that it has issued 14,739,599 new ordinary shares of 1p each ("New Ordinary Shares") in the Company as part of the Refinancing announced on 20 December 2016 ("Refinancing").

Under the terms of the Refinancing, New Money Backstop Creditors that elected to purchase more than their pro rata share of PIK Toggle Notes pursuant to the New Money Offer were offered, together with the Initial Consenting Creditors, the right to subscribe for their pro rata share of the New Ordinary Shares at nominal value.

Application has been made for the New Ordinary Shares to be admitted to trading on AIM and it is anticipated that admission will become effective on 9 February 2017. Following admission, the Company's issued share capital will consist of 162,135,949 ordinary shares of 1p each.

As announced on 20 December 2016, the entering into entering into of the Lock-up Agreement and the Conditional Subscription Agreement with MAST Capital Management, LLC and Solus Alternative Asset Management LP (together, the "Related Parties"), who are also substantial shareholders amounted to a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The issue of 14,739,599 New Ordinary Shares to the Related Parties falls within the Refinancing.

Terms defined in the Company's announcement dated 20 December 2016 have the same meaning in this announcement, save where the context otherwise requires.

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