Craven House Capital Regulatory News (CRV)

30 August 2016

Craven House Capital Plc

("Craven House" or the "Company")

$2,500,000 Convertible Loan to Hotel Yiannaki, Mykonos and Issue of Equity

The Company today announces that it has provided a $2,500,000 convertible loan (the "Loan") to Xenod Tour Oikod Epeix Afon Daktylidi AE ("Xenod"), a Greek holding company whose sole asset is the Hotel Yiannaki; a 45 room, four-star hotel, located on the Greek Island of Mykonos. The loan has a term of five years and, upon maturity, is convertible for up to 30% of the equity of Xenod.

The Loan has been provided utilising the proceeds of a simultaneous share subscription by Xenod, for 205,423 new Ordinary Shares in the Company priced at $12.17, amounting to an aggregate subscription of $2,500,000. Xenod will utilise the proceeds of the Loan to strengthen its balance sheet and provide capital to undertake expansion of the Hotel Yiannaki, which they believe will enhance the profitability of its operations.

Application has been made to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 2 September 2016. The shares will rank pari passu with the existing issued ordinary shares.

Mark Pajak, Acting Chairman, commented:

"We are delighted to announce this investment in what is an outstanding, profitable hotel operation on the popular Island of Mykonos."

Following the issue of the new Ordinary Shares, the Company's total issued share capital will consist of 2,044,362 ordinary shares with each share carrying the right to one vote. The Company has no ordinary shares held in treasury. The total of 2,044,362 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information please contact:

Notes to Editors:

About the Hotel Yiannaki:

www.yiannali.gr

"Painted in the traditional Greek colors of blue and white, nestling on a hill overlooking the bay of Ornos, Hotel Yiannaki is the perfect setting for your time on the Mykonos (Myconos) Island. It is well situated for a day on the beach or a night in Mykonos town. Newly refurbished with excellent facilities complementing the ever excellent service Hotel Yiannaki is not only a 4 star hotel in Mykonos, but a hotel that welcomes you like a member of family.

The Yiannaki Hotel is located in the settlement of Ornos, in a beautiful bay area, on the western side of Mykonos Island. The hotel is situated just 200 meters from the beach and offers a beautiful view from its room balconies."

About Craven House Capital

Craven House Capital is a frontier and emerging market focused merchant bank seeking value oriented long term investments. Craven House invests in all segments of the capital structure in partnership with local entrepreneurs and the local business community. Craven House provides long term patient capital and is often involved in restructuring, expansion and turn around investments in crisis and transitioning economies.