PHD.L Regulatory News (PHD)

PROACTIS Holdings PLC

("PROACTIS", "the Company" or "the Group")

Placing to raise £2.2 million

PROACTIS Holdings PLC, a global Spend Control and eProcurement solution provider, is pleased to announce that it has raised £2.2 million, before expenses, through the issue of 4,400,000 new ordinary shares of 10 pence each ("Ordinary Shares") with new and existing investors (the "Placing") at a price of 50 pence per new Ordinary Share.

Following the acquisition of EGS Group Limited in February 2014, PROACTIS stated, within its Interim Results announcement on 3 March 2014, that it is committed to M&A as a core element of its growth strategy. This Placing has been completed to support further acquisition opportunities and for general working capital purposes. The Group is currently evaluating a number of target companies although no terms have been agreed and there can be no certainty of a transaction at this time.

Details of the Placing

The Placing Shares will be issued pursuant to the authority granted to the Directors to allot shares free from statutory pre-emption rights at the Company's Annual General Meeting on 16 December 2013. The Company presently intends to convene a general meeting in the near future in order to renew such authorities.

Application has been made for 4,400,000 new Ordinary Shares, which will rank pari passu in all respects with the existing Ordinary Shares of the Company, to be admitted to trading on AIM ("Admission"). Admission is expected to be effective from 8.00 a.m. on 21 March 2014.

The Placing is conditional, inter alia, upon Admission of the Placing Shares becoming effective and the placing agreement entered into between the Company and finnCap becoming unconditional in all respects by no later than 8:00 a.m. on 21 March 2014 or such later date, being not later than 8:00 a.m. on 11 April 2014, in either case unless as the Company and finnCap otherwise agree.

Total Voting Rights

Subsequent to the issue of the Placing Shares, the total issued share capital of the Company will be 36,271,373 Ordinary Shares, with each share carrying the right to one vote. The Company holds 63,777 Ordinary Shares in treasury. Accordingly, following Admission, the total number of voting rights in the Company will be 36,207,596.

 Rod Jones, Chief Executive Officer, commented:

"We are delighted to have completed this placing and we were encouraged by the demand for the Group's stock in the market from new and existing institutions. The additional capital will enable the Group to move forward decisively with the M&A element of its growth strategy and we look forward to deploying this capital efficiently."