K3 Business Technology Group Regulatory News (KBT)

AIM: KBT

 K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Placing

K3, which provides and supports Enterprise Resource Planning software, hosting and managed services to the supply chain industry, is pleased to announce that it has conditionally raised £2.7 million through a placing of 2,848,184 new ordinary shares of 25 pence each ("Ordinary Shares" and the "Placing Shares") through its broker, finnCap Ltd, at a price of 95 pence per Ordinary Share with new and existing institutional shareholders (the "Placing").

The net proceeds of the Placing are intended to be deployed in reducing K3's borrowings and for general working capital purposes, whilst also satisfying market demand and broadening the institutional shareholder base of the Group.

Details of the Placing

The Placing Shares will be issued pursuant to the authority granted to the Directors to allot shares free from statutory pre-emption rights at the Company's Annual General Meeting on 5 December 2012. Application has been made for the Placing Shares, which will rank pari passu in all respects with the existing Ordinary Shares of the Company, to be admitted to trading on AIM ("Admission"), which is expected to be effective from 8.00 am on 22 March 2013.

The Placing is conditional, inter alia, upon Admission becoming effective and the placing agreement entered into between K3 and finnCap becoming unconditional in all respects by no later than 8:00 a.m. on 22 March 2013 or such later date, being not later than 8:00 a.m. on 31 March 2013, in either case unless as K3 and finnCap otherwise agree.

Total Voting Rights

Subsequent to the issue of the Placing Shares, the total issued share capital of the Company will be 31,434,025 Ordinary Shares. The Company holds no Ordinary Shares in treasury. Accordingly, after Admission, the total number of voting rights in the Company will be 31,434,025.

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