Issue of US$500,000 of Convertible Loan Notes

The following amendments have been made to the 'Issue of US$500,000 of Convertible Loan Notes' announcement released at 7.00 a.m. on 16 March 2016 under RNS Number: 2160S.

The conversion price will be the lower of (i) 1 penny per Ordinary Share; or (ii) the price per Ordinary Share at which the Company issues any Ordinary Shares before 30 April 2016 (corrected from 1 April 2016 in the original announcement); or (iii) the conversion price of any other convertible debt issued by the Company or another group company before 30 April 2016 (corrected from 1 April 2016 in the original announcement).

All other details remain unchanged.

16 March 2016

Phorm Corporation Limited

("Phorm" or the "Company")

Issue of US$500,000 of Convertible Loan Notes

Phorm (AIM: PHRM), a leading advertising-technology company and first party data platform provider, announces that it has yesterday constituted a new convertible loan note instrument (the "Convertible Loan Note Instrument") further to which Mr Michael Bigger, an existing shareholder in the Company, has subscribed for £350,000 principal amount (equivalent to approximately US$500,000) of loan notes (the "Loan Notes").

In accordance with the terms of the Convertible Loan Note Instrument, interest shall accrue on the Loan Notes at a rate of 12 per cent. per annum. The Loan Notes, together with any potential further loan notes as may be issued pursuant to the Convertible Loan Note Instrument, together with accrued interest thereon, will be repayable on 22 April 2017 (the "Maturity Date"). The Loan Notes are unsecured.

The Loan Note holder can elect at any time that repayment of the principal amount of the Loan Notes, together with accrued interest thereon, be satisfied, in full or in part, by way of the issue of new ordinary shares of nil par value each in the capital of Phorm ("Ordinary Shares") at a conversion price which is the lower of (i) 1 penny per Ordinary Share; or (ii) the price per Ordinary Share at which the Company issues any Ordinary Shares before 30 April 2016; or (iii) the conversion price of any other convertible debt issued by the Company or another group company before 30 April 2016.

The Company may, at any time prior to the Maturity Date, redeem all Loan Notes outstanding (including accrued interest thereon) in cash, by serving written notice on the Loan Note holders at such time, provided that the Ordinary Shares shall have traded on AIM at a volume weighted average price per Ordinary Share in excess of £1 per Ordinary Share, on each business day in a period of 10 consecutive business days immediately preceding the date on which notice was given to the Loan Note holders.

The Company intends to use the net proceeds from the abovementioned issue of the Loan Notes for its immediate working capital purposes and intends to raise additional equity and/or debt finance in the near term to fund its ongoing working capital requirements.

The Company remains in advanced discussions with certain of its shareholders and other parties regarding potential additional funding, which is required to be secured before the Company can seek for the suspension of its Ordinary Shares from trading on AIM to be lifted. There can be no guarantee that such discussions will result in any additional funds being raised. A further announcement will be made in due course as appropriate.

-Ends-

For further information please contact: 

Phorm Corporation Limited

Timothy Smith (Chief Executive Officer) +44 (0) 20 3397 6001

Mirabaud Securities LLP (Broker) +44 (0) 20 7321 2508

Jason Woollard 

Peter Krens

Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494

James Harris Matthew Chandler James Dance

About Phorm:

Phorm is a leading advertising-technology and first party data platform provider that enables brands and publishers to address online users with personalised content and advertising. Phorm's innovative platform delivers a more interesting online experience for the user and addressable campaign results for marketers. For more information, please visit: www.phorm.com