FLX.L Regulatory News (FLX)

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THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFERING OF, OR SOLICITATION TO PURCHASE OR SUBSCRIBE, SECURITIES IN THE COMPANY.

Falanx Group Limited

("Falanx" or "the Company")

Results of the Placing and Total Voting Rights

Falanx Group Limited (AIM: FLX) a cyber defence and intelligence provider working with blue chip, SME and government clients worldwide, is pleased to announce that the proposed placing announced this morning (the "Placing") was oversubscribed. A total of 29,090,909 new ordinary shares in the Company (the "Placing Shares") were successfully placed with investors at a price of 6.875 pence per Placing Share, raising £2 million before expenses.

Turner Pope Investments will receive, as placing agent for the subscription, 545,455 Ordinary Shares as fees, which are subject to a 6 month 'Lock-in' period from the date of issue.

The total Ordinary Shares to be issued pursuant to the Placing represent approximately 23.56% of the Company's existing issued share capital and will represent, in aggregate, approximately 19.07% of the Company's enlarged issued share capital.

Admission of the new Ordinary Shares to trading on AIM

Application will be made for admission of 29,636,364 new Ordinary Shares to be issued pursuant to the Placing to trading on the AIM Market of the London Stock Exchange, which is expected to take place on or around 8.00 a.m. on 10th May 2017 ("Admission"). The Placing is conditional on Admission becoming effective. The new Ordinary Shares will, when issued, be credited as fully paid and will rank equally in all respects with the existing Ordinary Shares, including the right to receive any dividend or other distribution declared, made or paid after Admission.

Following Admission, the Company's enlarged issued share capital will comprise 155,417,268 Ordinary Shares carrying one vote per share. The Company does not hold any Ordinary Shares in treasury.

Stuart Bladen, Chief Executive Officer of Falanx Group, commented:

"The cyber market is growing rapidly and it is important for Falanx to expand and take market share quickly to maximize our future value. We are therefore delighted to announce this placing which followed several approaches from interested investors. The Board agree it was in our shareholders' interest to serve market demand for equity in Falanx because it strengthens our capital reserves, accelerates our growth and completes our pathway to full profitability without interruption. "

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