Falcon Regulatory News (FAL)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

17 October 2017

Falcon Media House Limited

("Falcon", the "Group" or the "Company")

Announce £3.4 Million Funding

Falcon Media House (LSE:FAL), the global digital media group focused on the over-the-top ('OTT') market, is today pleased to announce the securing of £3.4 million of additional funding via a convertible loan note ("the Note"), supported by existing shareholders and Group management.

As outlined in the strategy update announced on 2 October 2017, Quiptel's portfolio of OTT technologies is now the Company's primary business focus. By putting Q-Flow, the patented suite of software which optimises the dynamic routing of video across any network, and the Quiptel Media Platform, a scalable end-to-end solution for rapid deployment of OTT services, at the core of Falcon's activities, the Board sees significant potential to provide a clear path to market for global brands, operators, content libraries, creators and rights-holders that are currently underserved by existing providers. Consumers ultimately benefit from Quiptel's technology through reduced buffering and faster time-to-picture, while businesses can utilise both open and private networks to more efficiently stream video in harsh or constrained environments.

Gert Rieder, Chief Executive Falcon Media House, commented, "We believe that sharpening our strategic focus on our proprietary technology will benefit Falcon, its customers and shareholders both in the short and long term. We recognise, as do our customers, that the best returns for the Company, in the fast-paced and dynamic video streaming market, will come from accelerating the development of our core Quiptel technology, which has already generated significant interest. We are therefore delighted that our new strategy is so strongly supported by existing shareholders."

Principal terms of the Note

· The aggregate principal amount of the Note is £10 million, of which £3.4 million has been issued to date.

· The use of proceeds is for general corporate purposes, including continued software development and enhancements, increased geographical footprint and reach, scaling up the sales and support organisation, content acquisition and aggregation and general working capital.

· The Note is unlisted, unsecured, transferable and is to be redeemed by the Company on 6 September 2020, at the Company's option, either in cash or in ordinary shares of the Company ("Ordinary Shares") at the lower of 9.25 pence and the 30-day VWAP less 25%.

· The Noteholders may convert all or part of the principal amount of the Note in multiples of £100,000 into Ordinary Shares at any time at a conversion price of the lower of 9.25 pence and the 30 VWAP less 25% and subject to the following conditions:

o No conversions in the first six (6) months.

o At least three (3) months between conversions for each Noteholder.

o Noteholders may not convert if the conversion would trigger an obligation on the Company to issue a prospectus.

· Interest is accrued at 8% per annum and payable quarterly, upon conversion or at maturity, at the Noteholder's option in cash or through issuance of additional Notes in respect of such accrued interest conversion amount at par.

· The Note may be redeemed by the Noteholder following certain noteholder redemption events, which include: payment default; material breach by the Company not cured within fifteen (15) trading days; or the Company suffers an insolvency event.

**ENDS**

For more information visit www.falconmediahouse.com or enquire to:

About Falcon Media House

Falcon Media House (LSE:FAL) is a global digital media group, powering the new paradigm in media entertainment for intelligent streaming of live and on-demand video. Its goal is to create an ecosystem where great technology meets great entertainment and delivering the right audience. The Group is capitalising on explosive demand for digital video, streamed "live" and "on-demand", known as the Over-The-Top (OTT) video streaming market. Falcon Media House focuses on Technology, particularly Quiptel's innovative patented software enabling "intelligent streaming" on any network to any device, bridging the "last mile" while dramatically improving Quality of Service (QoS) and Quality of Experience (QoE), and Media that provides brands, creators and rights-holders with exclusive and unique content for a global audience.