Mercia Asset Regulatory News (MERC)

RNS REACH

15 September 2015

Mercia Technologies PLC

Mercia completes follow-on investments in VirtTrade and Crowd Reactive; Will Whitehorn appointed Crowd Reactive Chairman

Mercia Technologies PLC (AIM: Merc, "Mercia"), a Midlands-based investment group building, funding and commercialising technology businesses across the UK, has completed two follow-on investments into VirtTrade Limited ("VirtTrade") and Crowd Reactive Limited ("Crowd Reactive"). The investments coincide with VirtTrade's first virtual trading card game launch with Panini: "NBA Dunk" and a significant appointment to the Board of Crowd Reactive.

Mercia has invested a further £825,000 in VirtTrade, a digital trading card platform business. This follows VirtTrade's partnership with Panini Group, the world leader in sports and entertainment collectibles, which was announced in March.

VirtTrade's trading engine takes the principle of a traditional printed card/sticker album and turns it into an interactive digital trading environment. Panini has recently launched its first mobile app, entitled NBA Panini Dunk, utilising VirtTrade's proprietary technology and trading platform.

Mercia has also now invested the second tranche of £500,000 in Crowd Reactive, a user-generated content platform for events and venues, as outlined in its 18 March 2015 RNS announcement.

Alongside this investment, Crowd Reactive has appointed Will Whitehorn, the former President of Virgin Galactic, as Chairman. Mr Whitehorn will work with management specifically on EventsTag, a live social media feed for consumers, brands and businesses, and one of three product packages offered by Crowd Reactive.

Mr Whitehorn has over 30 years' experience in brand development, media and communication, and will assist the leadership team with the direction and strategy of the business, as it evolves from an early stage start-up to a globally established brand.

Mark Payton, CEO of Mercia Technologies PLC, said:

"We are pleased to make follow-on direct investment into two of our 'emerging stars', originally emanating from Mercia's third party funds under management. Both VirtTrade and Crowd Reactive now have significant commercial partnerships and our investment and support is to accelerate their continued growth.

Will Whitehorn joining as Chairman of Crowd Reactive is a testament to the quality of the businesses that we are supporting. The experience he gained from his time at Virgin, including working closely with Sir Richard Branson, will prove to be a valuable asset to the Crowd Reactive team."

Commenting on his appointment, Mr Whitehorn said:

"I am delighted to be joining such an ambitious and innovative team. Having worked for a globally recognised brand for many years, I know only too well how important it is to differentiate a business within competitive markets. EventsTag is uniquely placed to offer that opportunity."

Commenting on Mr Whitehorn's appointment, Rob Johnson, Investment Director at Mercia Technologies said:

"I have worked with CEO Dan Strang on Crowd Reactive's evolution since its early days and it's wonderful to see one of Mercia's 'emerging stars' attract such an industry heavyweight as Will Whitehorn. He will contribute invaluable experience and expertise as the team continues the international expansion of the business."

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Note to editors

Mercia creates, funds and develops technology businesses nationally with an emphasis in the Midlands, the North and Scotland. It brings technology transfer, company formation, incubation, commercialisation and investment to technology ventures. Approximately 50% of its investments derive from university spinouts. Mercia invests across key technology sectors in which it has deep sector expertise.

The Mercia model is one of patiently nurturing businesses through its tax efficient third party funds under management, and then scaling them with direct investment at the point of commercial traction. Through this, Mercia has a well seeded portfolio and pipeline of investments - its 'emerging stars'. Currently, the Group has a direct investment in 18 operating companies and access to a portfolio of 44 businesses through its third party funds, managed by its wholly owned subsidiary Mercia Fund Management.

Mercia's shares started trading on AIM on 18 December 2014 and since then up until 31 July 2015, Mercia has invested almost £15m directly across its portfolio of emerging stars, which in themselves have attracted a total investment of over £70m alongside investment from the Group to date. In addition to its direct investments, Mercia (via Mercia Fund Management) has invested over £19m to build its portfolio of potential emerging stars.

VirtTrade Limited

VirtTrade was formed in 2012 to develop a customisable platform based on mobile technology that feeds off real world data - employing the users' environment and activity to make their trading card experience totally immersive and dynamic.

VirtTrade has signed a non-exclusive contract with Panini to digitise highly reputable and well established sports and entertainment franchise collections, for current and future product launches.

Crowd Reactive Limited

Crowd Reactive is a user generated content platform for brands. Its products include EventsTag (a live social media feed for consumers), ii.do (a live social slideshow for wedding party pictures), and Crowd Reactive (a platform for brands to add live social media content to its advertising). The Company's mission is to help clients create unique experiences for their customers whilst also increasing interactions on social media.