Live Company Regulatory News (LVCG)

27 December 2013

Parallel Media Group plc

("Parallel Media" or the "Company")

Result of General Meeting, Firm Placing and result of Placing and Open Offer

On 3 December 2013, Parallel Media Group plc (AIM:PAA.L), a leading communications agency connecting lifestyle brands to opportunities in its chosen sectors in Asian markets, announced the details of a proposed share issue to raise gross proceeds, in aggregate, of £1.5 million by way of (i) a firm placing of 641,026 New Shares at 156p per share to raise £1 million; and (ii) an open offer of 320,684 New Shares at 156p per share to raise approximately £0.5 million on the basis of 13 Open Offer Shares for every 1,992 Existing Ordinary Shares, all of which have either been placed firm or conditionally (subject to clawback to satisfy valid applications under the Open Offer) with a new institutional investor; and the terms of a proposed Capital Reorganisation resulting in one New Ordinary Share for every 24 Existing Ordinary Shares.

The Directors are pleased to announce that at the General Meeting held earlier today, all resolutions proposed were duly passed.

The Open Offer was made on a pre-emptive basis to Qualifying Shareholders. Certain Qualifying Shareholders, comprising David Ciclitira and his associated parties which form the Concert Party have undertaken not to take up their entitlements under the Open Offer comprising in aggregate 109,617 New Shares, and these 109,617 New Shares have been placed by Sanlam Securities with Oryx and will raise approximately £171,000 of the £0.5 million (before expenses) referred to above and the Placing of these New Shares is not being underwritten by Sanlam Securities or by any other person.

The Open Offer Shares have been conditionally placed by Sanlam Securities (under the Placing) with Oryx at the Issue Price subject to clawback to satisfy valid applications under the Open Offer (save in the case of those Open Offer Shares referred to above in respect of which irrevocable undertakings not to take up entitlements have been received and as such there is therefore no possibility of clawback). The Open Offer Shares that are placed subject to clawback will raise approximately £329,000 million of the £0.5 million (before expenses) referred to above.

The Company has received valid acceptances in respect of 36,368 Open Offer Shares from Qualifying Shareholders. This represents approximately 11.34 per cent of the Open Offer Shares made available for applications from Qualifying Shareholders (that is less those Ordinary Shares that are the subject of the Placing). All valid applications received from Qualifying Shareholders will be accepted in full.

The Firm Placing and the Placing and the Open Offer remain conditional, amongst other things, on Admission occurring no later than 8.00 a.m. on 30 December 2013 (or such later time and/or date as Sanlam Securities may determine, not being later than 31 January 2014).

The Company has made application for these shares to be admitted to trading on AIM and dealing is expected to commence on 30 December 2013. The new ISIN on Admission will be GB00BGSGT481.

Following Admission, the Company will have a total of 3,009,233 New Ordinary Shares in issue.

As a result of his participation in the Firm Placing, Mr Ciclitira will hold 1,020,742 New Ordinary Shares equivalent to 33.92 per cent. of the Enlarged Share Capital.

Definitions used in this announcement shall have the same meaning as given in the Shareholder circular, copies of which are available on the Company's website www.parallelmediagroup.com.

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