FLX.L Regulatory News (FLX)

19 September 2013

FALANX GROUP LIMITED

("Falanx" or the 'Company')

Subscription to raise £225,000

Falanx Group Limited, a security and risk management consultancy working with blue chip and government clients worldwide, announces that it has conditionally raised £225,000 through a subscription (the "Subscription") of 1,875,000 ordinary shares of no par value.

Proceeds of the subscription will be applied to potential acquisition due diligence and general working capital requirements

In addition to the Subscription Shares the Company will issue one warrant for every two Placing Shares subscribed, exercisable at 18p per warrant at any time up to three years from issue.

Following the issue of the shares Mr Simon Vaughan will hold 4.78% of the enlarged issued share capital and total voting rights.

The Subscription is conditional on admission of the Subscription Shares to trading on AIM. The Subscription Shares will rank pari passu with the existing issued ordinary shares of the Company ("Ordinary Shares").

Application has been made to AIM for the Subscription Shares to be admitted to trading. Admission and trading in the Subscription Shares are expected to commence on 24 September 2013.

On admission of the 1,875,000 Subscription Shares, the Company will have 39,333,333 Ordinary Shares in issue in total.

John Blamire, CEO of Falanx, commented:

"Admission to AIM has given the Company the boost we expected and as stated we are looking to grow rapidly. These additional funds, raised at the Placing price, will allow us to fund the expansion of the current business and also pay for the due diligence on a number of potential acquisitions."