Falcon Regulatory News (FAL)

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

24 April 2018

Falcon Media House Limited

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

£325,000 Funding

Falcon Media House (LSE:FAL), the global digital media group focused on the over-the-top ('OTT') market, provides an update further to the announcement made on 20 March 2018.

Funds remain outstanding from the shareholder identified in that announcement and the Board continues to work with its legal advisers to consider all options and reserve its rights to ensure all monies promised to it are duly received.

However, the Company is pleased to report that it has now raised £325,000 from other investors, from the issue of convertible loan notes pursuant to the Convertible Note Instrument issued on 17 October 2017 (the "Note"), of which £270,000 has so far been received in cash. The Board are extremely pleased that existing shareholders, as well as the directors and the executive management team have participated in this fundraise, indicating a strong belief in the prospects of Falcon.

The Board is continuing to pursue further funding opportunities both in relation to the remainder of the outstanding amount that can be issued under the Note as well as considering alternative funding sources and structures. 

The Board has also taken the decision to issue a Notice of Meeting to Noteholders to propose two resolutions to amend the Note:

· That the Conversion Price applicable to the Note be set at 2.5p per share; and

· That interest be paid in specie by the issue of additional Notes - i.e. there will be no cash option for interest until redemption.

The resolutions, if passed, will enable the Company to eliminate the cashflow impact of paying interest during the term of the Note and fix the maximum dilution possible should all Notes be converted. The Noteholder meeting has been called for 26 April 2018. The Company has received initial indications that more than 50% of beneficial owners of the Notes will direct their votes in favour of the resolutions.

Further updates will follow in due course.

**ENDS**

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