Lombard Risk Management Regulatory News (LRM)

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA, NEW ZEALAND, THE REPUBLIC OF IRELAND OR ANY JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

26 May 2015

Lombard Risk Management plc

("Lombard Risk" or "the Company")

Lombard Risk raises £4.0 million to accelerate expansion opportunities

Lombard Risk Management plc (AIM: LRM), a leading provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, is pleased to announce that it has raised approximately £4.0 million through a placing of 37,200,000 new Ordinary Shares (the "Placing Shares") at 10.75 pence per share (the "Placing Price"). The Placing Shares have been placed with certain directors and institutional investors.

The Placing, which has been undertaken by Charles Stanley Securities ("Charles Stanley") and by WG Partners LLP as agents to the Placing, is conditional, inter alia, on admission of the Placing Shares to trading on AIM ("Admission").

Background to and Reasons for the Placing

The Company released its preliminary statement of the results for the year to 31 March 2015 on 21 May. As set out in that statement the Company had net cash of £2.2 million as at 31 March 2015 and confirmed that the Company experienced encouraging growth, particularly for its collateral management product in the North American market. The Board continue to focus on the direct sales function and, following some initial success in the past financial year, expects to see this complemented by increased sales traction through our global network of partners.

In addition, the Company has identified a number of opportunities through its global partner network which is providing Lombard Risk with exposure to both a broader range of larger clients and opportunities in new territories. The Board has received strong indications of support to pursue this strategy and accelerate these opportunities from a number of institutional investors. The proceeds of the Placing will enable the Company to invest further in pursuing these opportunities to drive further growth.

Use of Proceeds

The net proceeds of the Placing will be used to broaden the territorial reach of the next generation of the Company's regulatory reporting products, to more broadly strengthen the Company's products to meet customer and market expectations, to supplement the Company's working capital requirements and to strengthen further the Company's balance sheet. 

Details of the Placing

The Placing will raise gross proceeds of approximately £4.0 million through the issue by the Company of 37,200,000 new Ordinary Shares at a price of 10.75 pence per share.

The Placing Price represents a discount of 2.3 per cent. to the closing mid market price of 11.0 pence per share on 22 May 2015, being the last practicable date prior to the announcement of the Placing.

The Placing is conditional upon:

· the Placing Agreement becoming unconditional in all respects and not having been terminated in accordance with its terms; and

· Admission.

The allotment of the Placing Shares can be accommodated within the existing Shareholder authorities.

The Placing Shares have been placed with a number of new and existing institutional investors. In addition Philip Crawford and Steven Rogers, both directors of the Company, are subscribing for 1,759,876 Placing Shares and 219,984 Placing Shares respectively. In addition Philip Crawford has exercised options over 2,400,000 ordinary shares, with a total exercise consideration of £108,000 (the "Option Shares"). Following Admission Philip Crawford and Steve Rogers interests will be:

The Placing Shares represent, in aggregate, approximately 14.1 per cent. of the Company's existing issued share capital and approximately 12.3 per cent. of the issued share capital of the Company immediately following completion of the Placing and the issue of the Option Shares.

Application has been made for the Placing Shares and the Option Shares to be admitted to trading on AIM and it is expected that Admission will take place on Friday 29 May 2015. The Placing Shares and the Option Shares will rank pari passu with the existing Ordinary Shares, including the right to receive the final dividend of 0.045p per share which, if approved at the forthcoming Annual General Meeting, will be paid on 27 July 2015 to those shareholders on the register on 10 July 2015.

Following Admission of the Placing Shares and the Option Shares, the total issued share capital of Lombard Risk will comprise 303,511,026 Ordinary Shares. The figure of 303,511,026 Ordinary Shares 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, Lombard Risk under the Disclosure and Transparency Rules.

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THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA, NEW ZEALAND, THE REPUBLIC OF IRELAND OR ANY JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause actual results or events to differ from current expectations, intentions or projections might include, amongst other things, changes in equity markets, political risks, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain any required regulatory approval, uncertainties relating to the availability and costs of financing needed in the future, the success of strategic transactions and other risks associated with the Company's business. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements, which are not guarantees of future performance. Forward-looking statements speak only as of the date of such statements and, except as required by the Financial Conduct Authority ("FCA"), the London Stock Exchange plc or applicable law, each of the Company, Charles Stanley and WG Partners expressly disclaims any obligation or undertaking to review, revise or release publicly any updates to any forward-looking statements to reflect any changes in Lombard Risk's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based, whether as a result of new information, future events or otherwise.

No representation or warranty, express or implied, is or will be made by Charles Stanley, WG Partners or by any of their affiliates or agents as to, or in relation to, and no responsibility or liability is or will be accepted by Charles Stanley or WG Partners or by any of its affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement, or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefor is expressly disclaimed.

The Placing Shares to be issued pursuant to the Placing will not be admitted to trading on any stock exchange other than the AIM market of the London Stock Exchange. Neither the content of Lombard Risk's website nor any website accessible by hyperlinks on Lombard Risk website is incorporated in, or forms part of, this announcement.