FLX.L Regulatory News (FLX)

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

Falanx Group Limited

("Falanx" or "the Company")

Issue of Equity

Falanx Group (AIM: FLX) ("Falanx" or "the Group" or "the Company" announces that on 14th of November 2018, the Company has issued 138,500,000 new ordinary shares of no par value in the capital of the Company ("Ordinary Shares") due to institutional demand ("the Subscription"). The Subscription has raised gross proceeds of £4,155,000 at a price of 3 pence per share.

This Subscription is almost entirely comprised of new institutional investors, including Miton Asset Management and Amati Global Investors. The proceeds will enable the Company to:

· Invest in delivery capabilities around a larger scale deployment into the SolarWinds customer base, by financing the additional sales, marketing, operations staff and required corporate infrastructure. This will include further technology investment, application rollout and Security Operations Centre expansion, to seamlessly handle much larger volumes;

· Address and accelerate incremental sales opportunities across the whole Group;

· Increase customer and partner confidence due to a significantly strengthened balance sheet;

· Provide (through non EIS/VCT monies) funding for opportunistic but earnings enhancing acquisitions.

Building on the progress detailed in the interim results for the six months ended 30 September 2018 released earlier today, the proceeds of the Subscription will allow the Company to undertake certain incremental initiatives of both a capital and operational nature. This will assist the business to drive and accelerate incremental returns over future periods and these are now expected to be greater than those originally envisaged.

Save for the routine issuance of shares under option and for warrant agreements for the incentivisation of staff, the Company does not expect to be issuing further equity save for a major incremental value creating project or earnings enhancing acquisitions.

Mike Read, Chairman and Chief Executive, commented;

"I am delighted the strength of our business and our future opportunities has attracted several new institutional investors, who have provided Falanx with a strong capital base for the future. This new support will enable the Group to grow in a rapidly expanding market, creating increased value for all our shareholders"

Total Voting Rights and Admission

Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM ("Admission"). The Subscription Shares will rank pari passu in all respects with the existing ordinary shares, including the right to receive all dividends and other distributions declared, made or paid in respect of the Ordinary Shares following Admission. It is expected that Admission will become effective, and that dealings on AIM will commence on or around, 8.00 a.m. on 20 November 2018.

Following Admission, the Company will have 400,401,186 Ordinary Shares in issue. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares with voting rights in the Company will be 400,401,186. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules sourcebook.

Enquiries:

About Falanx

Falanx Group Limited, is a global intelligence and cyber defence provider working with blue chip and government clients. It operates the MidGARD cyber monitoring platform for corporate and governmental customers which utilises a combination of proprietary and third-party processes and technologies. For more information: http://www.falanx.com/