OCT.L Regulatory News (OCT)

27 March 2014 Octagonal Plc ("Octagonal" or the "Company") Investment in International Financial Services Company. Octagonal Plc (LSE AIM: OCT) is pleased to announce that it has signed anagreement to acquire a 9.97% interest (294,000 ordinary shares) in GlobalInvestment Strategy UK Limited ("GIS"), a London headquartered financialservices company trading in the Global Markets, including equities, fixedincome, commodities, currency and futures, using its proprietary online tradingplatforms and clearing and safe custody systems. GIS's global settlement and safe custody clearing business alone transacts forover 300 global hedge funds and family wealth offices. GIS manage on averageover 6,000 transactions per month with monthly settlement values exceeding £400million on behalf of global institutional accounts. GIS is a London Stock Exchange member firm and is regulated by the FCA. GISoffer a broad scope of settlement, custody, banking, broking and advisoryservices to professional, retail, corporate and eligible counterparty clients.GIS have over 100 counterparty relationships including most of the major localand international investments banks transacting in the UK. In addition to its core business of global settlement and custodial settlementservices, GIS has an Investment Management Division, managing funds for bothdomestic and overseas clients on a discretionary basis. GIS is a profitable fast growing company with 360% revenue growth for its fullyear to March 2013, recording a profit after taxation of £570,000. GIS had netassets of £1.7 million as at 31 March 2013. The business has grown continuouslysince then and expects to show a 60% year-on-year increase in revenue for theyear to 31 March 2014 3. Donald Strang, the Company's Chairman commented: "The Company sees tremendous growth opportunities for GIS as they continue toadd new global clients in need of their bespoke online trading platforms andclearing systems. We see a potential income stream from regular dividends fromthis investment going forward." "Octagonal will continue to seek new investments as per its stated investmentstrategy that the board believes would add value to the Company in the future." Transaction Summary: Octagonal has signed a legally binding Term Sheet with Mr John Gunn, theChairman, CEO and major shareholder of Global Investment Strategy UK Ltd, toacquire 9.97% of GIS on the following terms: * Immediate cash payment of £100,000 * A further cash payment of £700,000 on signing the Sale and Purchase Agreement and Shareholder's Agreement which is expected to be completed by 11 April 2014. The consideration will be satisfied from the Company's existing cash resources. The Shareholder's Agreement is expected to regulate the relationship betweenthe Company and any other shareholders of GIS. For further information, contact: Octagonal plcDonald Strang/Hamish Harris +44 (0) 207 440 0640 Sanlam Securities UK LimitedSimon Clements/Catherine Miles/Virginia Bull +44 (0) 207 628 2200