Live Company Regulatory News (LVCG)

28 Jul 2011 07:00

28 July 2011 Parallel Media Group plc ("PMG" or the "Company") Equity placing and Director dealings

PMG, the sports media and digital agency, announces that it has raised £1.2 million before expenses, by way of a placing of 3,428,568 new ordinary shares in the Company (the "Placing Shares") at a price of 35 pence per share (the "Placing Price") with both existing shareholders and new investors (the "Placing"). The Placing Price represents a premium of 55.5 per cent to the closing mid market share price on 27 July 2011.

The proceeds of the placing will be used to provide working capital to develop the Company's existing business and support the roll out of its new smart media platform, Parallel Smart Media ("PSM") following the announcement on 30 June 2011 of the acquisition of Parallel Media Korea (Smart Media) Limited (the "Acquisition"). As part of the consideration for the Acquisition the Company is allotting 1,153,746 new ordinary shares (the "Consideration Shares") to Luna Trading Limited (a company controlled by David Ciclitira).

The Placing and Acquisition are conditional on Admission and the passing of certain resolutions at the Company's upcoming annual general meeting being held at 9.00 a.m. on 29 July 2011.

Application has been made for admission of the Consideration Shares and Placing Shares to trading on AIM which is expected to occur on 1 August 2011 and 3 August 2011 respectively ("Admission"). The Placing Shares and Consideration Shares will rank pari passu with the existing ordinary shares.

Following Admission, there will be 20,019,752 ordinary shares in issue. This number may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

Directors Dealings

As part of the Placing David Ciclitira and Ranjit Murugason, both directors of the Company, purchased 250,000 and 142,857 Placing Shares respectively.

Following the issue and allotment of the Placing Shares and Consideration Shares and Admission the interests of Mr Ciclitira and Mr Murugason in the issued share capital of the Company will be as follows:

David Ciclitira* 39.66%

Ranjit Murugason 4.8%

* David Ciclitira's interest includes his direct interest, that of Luna Trading Limited and that of the other members of the Concert Party as defined in the circular published by the Company dated 9 August 2010.

Following the issue and allotment of the Placing Shares and Consideration Shares and Admission the following shareholders (in addition to the directors named above) will, where known, be interested in 3% or more in the issued share capital of the Company will be as follows:

Chris Salter 8.28%

Herald Investment Management Limited 11.77%

Pierce Casey 3.57%

Smith & Williamson Nominees Limited 3.34%

Chinui Kim 4.28%

Following the issue and allotment of the Placing Shares and Consideration Shares and Admission Patrick Delaney no longer has a notifiable interest in the Company.

Commenting today, David Ciclitira, Chairman of PMG, said:

"We are extremely pleased at the level of support from both existing shareholders and new investors who clearly recognize the potential for the Company to grow both its core business and its exciting new digital viewing platform offered by PSM. We are in detailed discussions with a number of parties regarding PSM and expect to make further announcements shortly"

-End-

For further information, please contact:

Parallel Media Group 020 7225 2000David Ciclitira 0776 605 8566Charles Wale 0792 001 7360Northland Capital Partners (Nomad) 020 7796 8800Luke Cairns, Edward HuttonNovus Capital Markets Limited 020 7107 1881Nicholas Lee/Charles GoodfellowBishopsgate Communications 020 7562 3350Deepali Schneider, Natalie Quinnpmg@bishopsgatecommunications.com