The Peoples Operator Regulatory News (TPOP)

The People's Operator plc

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

Trading Update and Fundraising

The People's Operator (AIM: TPOP), the cause-based commercial mobile virtual network operator, provides the following update on its trading and operations for the closed period since the end of the financial year for the 12 months ended 31 December 2016 and provides details of a conditional fundraising to raise approximately £1.58m.

Trading Update

As announced on 25 January 2017 Group revenue for the 12 months ended 31 December 2016 is expected to be approximately £3.6m. The Company is pleased to announce a highly encouraging start to the new financial year. Revenue in the US has shown 25.6% growth in the first two months of 2017 and new customer sign-ups continue at consistently high levels.

The Company has been in discussions with its network providers and is pleased to announce that it has negotiated significantly improved commercial terms in both the US and the UK, which will have an appreciable positive effect on margins and growth in both regions.

Following the successful fundraising in December, the Company has allocated resources to its new amplification campaigns for the first half of the year. These will include a major initiative around campaign theme packages to tap into the wave of social responsibility sweeping the US; the launch of our Member Get Member leaderboards and our Multiline Account programme; the activation of new affiliate publishers; and the development of unique and comparative partner landing pages. These innovations have been driven by extensive market research and specifically tailored to targeted customer groups. They will be supported by high-profile publicity and awareness drives.

The Directors believe that TPO is well-placed to continue the revenue and margin growth already seen this year and are confident that the very strong start to the year can be maintained.

Proposed Fundraising

Due to investor demand, the Company today announces a conditional subscription for 19,736,843 new ordinary shares of £0.0005 each ("Ordinary Shares") (the "Subscription Shares") at a price of 8 pence per Ordinary Share to raise gross proceeds of approximately £1.58 million (the "Subscription") and a proposed issue of 9,868,422 warrants over Ordinary Shares (the "Warrants").

The Subscription

The Company proposes to raise up to £1,578,947.44 (before expenses) pursuant to the Subscription. The net proceeds of the Subscription will be used by the Company to accelerate the expansion of its amplification campaigns in the US as detailed in the trading statement above.

The Warrants

The Company proposes to issue 9,868,422 warrants over Ordinary Shares. The Warrants are exercisable in the year following Admission (as defined below) at a price of 15 pence per Ordinary Share. The Warrants will be issued to each subscriber in the Subscription on the basis of 1 Warrant for every 2 Subscription Shares. The Warrants will be not admitted to trading on any Exchange and are non-transferable.

Conditions of the Subscription

The Subscription and the issue of the Warrants is conditional upon the following conditions:

i. resolutions being passed at a general meeting of the Company granting the directors of the Company authority to (i) allot ordinary shares in the Company up to an aggregate nominal value of £16,000 and (ii) to issue shares in accordance with (i) as if section 561 (pre-emption rights) of the Companies Act 2006 did not apply; and

ii. admission of the Subscription Shares to trading on AIM ("Admission") occurring,

in each case on or before 10 April 2017 (the "Long Stop Date") or such later date, being not later than 13 April 2017 as the Company may notify you in writing.

General Meeting

The Company will shortly post a circular to shareholders (the "Circular") to convene a general meeting for the purpose of seeking approval for the resolutions referred to in paragraph (i) above (the "General Meeting"), such General Meeting to be convened to be held no later than 7 April 2017. The Company will confirm the posting of the Circular and the date of the General meeting via release of an RNS in due course.

For further information

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.