London Capital Group Holdings Regulatory News (LCG)

London Capital Group Holdings plc

("LCG" or the "Company")

Financing update

Further to the Company's announcement on 17 June 2014, concerning the proposed financing to raise up to £17,500,000, through the Issue of convertible loan notes to GLIO and Institutional Investors, LCG is pleased to announce that it has entered into a convertible loan note instrument ("Institutional Investors CLN Instrument") relating to the subscription of £2,000,000 in principal amount of unsecured convertible loan notes of £1.00 each in the capital of the Company (the "CLN Subscription") by the following persons ("Institutional Investors") and in the following proportions:-

a) Hargreave Hale (registered in the name of HSBC Global Custody Nominee (UK) Limited) for £1,000,000 convertible loan notes; and

b) Mr Tyler Rameson (registered in the name of JIM Nominees Limited) for £1,000,000 convertible loan notes,

(together, the "CLNs") each at a conversion price to be determined, according to the conversion price calculation, referred to in the Institutional Investors CLN Instrument. In connection with and conditional on the above CLN Subscription, the Company shall issue warrants to the Institutional Investors, to subscribe for new ordinary shares of £0.10 each in the capital of the Company in proportion to the number of CLNs to be subscribed for by the Institutional Investors, each at a price of 45 pence per share.

Following the recent relevant Approvals of Mr Charles-Henri Sabet and GLIO, as announced by the Company on 14 August 2014, the Institutional Investors CLNs will become due for subscription once the conversion price has been determined (assuming that there is no outstanding event of default and LCG's net assets are not less than £8.5 million) in accordance with the terms referred to in the Institutional Investors CLN Instrument. A further announcement(s) will be made in due course following the subscription of the convertible loan notes by GLIO and the Institutional Investors respectively.

Save where the context requires, capitalised terms within this announcement have the same meaning as those in the Circular to Shareholders, published on 17 June 2014.

For further information, please contact: www.londoncapitalgroup.com

London Capital Group Holdings plc 

Charles-Henri Sabet, Executive Chairman

020 7456 7000

Cenkos Securities plc

Nicholas Wells

020 7397 8900

Smithfield Consultants

John Kiely

020 7360 4900

Notes to Editors:

London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a financial services company offering online trading services.

London Capital Group Limited (LCG Ltd), a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Conduct Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other division provides online foreign exchange trading services to institutional and professional clients. LCG Ltd is one of the leading providers of white label financial spread trading and CFD platforms and its white label partners include TD Direct Investing, Bwin.party, and Saxo Bank.

 LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships.

 LCGH plc is listed on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.