Cloudtag Inc Regulatory News (CTAG)

24 February 2017

Cloudtag Inc.

("Cloudtag" or the "Company")

Fundraise of £975,000

Notice of resignation of Nomad

Cloudtag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets hereby announces that it has raised gross proceeds of £975,000 through a subscription for 26,000,000 new ordinary shares of 0.1 pence each (the "Subscription Shares") at an issue price of 3.75 pence per share (the "Subscription"). The Subscription was completed with the clients of Novum Securities Limited, a London based financial institution. The Subscription is conditional upon, inter alia, receipt of the net proceeds of the Subscription.

The Company will receive net proceeds of £916,500 after expenses of £58,500 ("Net Proceeds"), representing 6% of gross proceeds.

The Net Proceeds will be used for general working capital purposes. The Company is pre-revenue generating and is therefore dependent on its ability to raise further capital to continue its operations in the short term. The board is carefully managing the Company's cash position.

In addition, in order to allow the Company to issue further new ordinary shares the Company intends to convene an Extraordinary General Meeting at which a resolution will be put to shareholders to dis-apply pre-emption rights. Details will be posted to shareholders and an announcement made in due course.

Following receipt of the Net Proceeds an application will be made for the admission of the Subscription Shares to trading on AIM and it is expected that dealings in the Shares will commence on or around 2 March 2017. The Subscription Shares will rank pari passu in all respects with the Company's existing ordinary shares.

Following the issue of the Subscription Shares, the total number of ordinary shares in issue will be 474,104,916. This number may be used by shareholders as the denominator for the calculation 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.

Cairn Financial Advisers LLP, the Company's nominated adviser, has served notice on the Company that it will resign as the Company's nominated advisers with effect from 10 April 2017. The board is in advanced discussions with another nominated adviser and broker and is optimistic that a replacement nominated adviser will be appointed prior to 10 April 2017. Pursuant to AIM Rule 1, in the event that a replacement nominated adviser is not appointed by the Company by 10 April 2017, the Company's shares will be suspended and will be cancelled if an appointment is not made within one month thereafter.

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