Zoo Digital Regulatory News (ZOO)

ZOO DIGITAL GROUP PLC

("ZOO" or "the Company")

Convertible Loan Notes & Board Change

ZOO Digital Group plc, the provider of cloud-based media production software and services to global creative organisations, is pleased to announce that it has today raised £800,000 in new working capital support by way of the issue of a new convertible loan note (the "New Loan Notes"), the key terms of which are identical to the Company's existing Unsecured Convertible Loan Notes of £1,770,500 (the "Existing Loan Notes").

Subsequent to this issue of New Loan Notes, the combined amount of the New Loan Notes and the Existing Loan Notes will have a principal value of £2,570,500. The key terms of the New Loan Notes are identical to those of the Existing Loan Notes, being primarily that the New Loan Notes accrue interest at 7.5 per cent. per annum (payable half-yearly) and that the conversion price of the New Loan Notes remains 48 pence per ordinary share of 15p each in the capital of the Company ("Ordinary Shares") converted. 

The New Loan Notes have been issued to Herald Investment Trust plc ("Herald") which, as a substantial shareholder of the Company, constitutes a related party transaction under the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, finnCap Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Stuart Green, Chief Executive Officer of the Company, said: "We remain optimistic of our prospects, particularly in view of current trading within our subtitling business, to which we are adding new clients on a monthly basis. The growing need for localisation is independent of distribution formats, unlike some other services we have offered in the past that have been adversely affected by trends in the popularity of specific entertainment platforms. This new financing leaves us well positioned to withstand fluctuations in our working capital requirements."

Separately, James Livingston has notified the Company that, after five years' service, he intends to step down from the Board with effect from 25 November 2014. The Group intends to appoint a replacement independent non-executive director in due course.

Stuart Green, continued: "We would like to thank James for his contribution to the business over the years as a non-executive director of the Company and we wish him the best with his other ventures."

Ends

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About ZOO Digital Group plc:

ZOO Digital is a provider of cloud-based media production services and software to global creative organisations, predominantly in the entertainment industry. ZOO's full service proposition includes localisation of audio-visual content (embracing subtitling, captioning and dubbing), creative workflow systems and digital distribution solutions.

ZOO's services enable clients to capitalise on new routes to market and deliver localised content to their customers across multiple platforms.

ZOO's clients enjoy reduced time to market, higher quality and lower costs. This is achieved by delivering differentiated production services through the application of innovative cloud software. In this way ZOO provides flexible solutions that combine services with software licensing to meet the diverse needs of clients of all sizes across the creative media industries. ZOO's software is used to create localised entertainment products, packaging and marketing campaigns for some of the best known brands in the world.