£2.64 million placing

RNS Number : 5586M

Falanx Group Limited

08 May 2015

 

Date:                             8 May 2015
On behalf of:                  Falanx Group Limited ("Falanx", "the Group" or "the Company")
Embargoed until:            0700hrs

FALANX GROUP LIMITED

("Falanx" or "the Company")

£2.64 million placing and extension of strategic partnership with Assuria

Falanx, a security and risk management consultancy working with blue chip and government clients worldwide, is pleased to announce that it is raising gross proceeds of £2.64million through a placing and subscription of 18,878,564 new ordinary shares (the "Placing and Subscription Shares") at 14 pence per ordinary share (the "Placing"). The funds are being raised from both new and existing investors. The proceeds of the Placing will be used to finance:

·       £500,000 to extend the global licence agreement with Assuria to 16  April 2018 and development of the Falanx and Assuria Cloud partnership; and

·       £2.14 million for the continued sales and marketing development of Falanx's cloud-based cyber security managed services.

Assuria partnership

Falanx is pleased to announce its strategic partnership with Assuria has been extended to April 2018. The partnership will focus on the delivery of cyber defence managed services to government and commercial customers via the Falanx Assuria SOC, as well as:

·      A joint IP development programme to meet new and upcoming cloud security threats, including security software, services, intelligence, processes and other know-how

·      A joint managed security services sales and marketing programme

·      All existing software licenses and associated licenses for managed cyber security services extended

·      Assuria branding will be licensed to Falanx

·      The Falanx and Assuria management teams will continue to work closely together, with the Assuria Chairman, Terry Pudwell, joining Falanx as a senior advisor

Details of the Placing and Subscription

Falanx has conditionally raised gross proceeds of approximately £2.6 million (before commission and transaction related expenses) through the issue of the Placing and Subscription Shares at the placing price of 14 pence per ordinary share, which represents a discount of approximately 30 per cent. to the middle market closing price of20 pence on  7 May 2015. The Placing and Subscription Shares will represent approximately30 per cent. of the enlarged issued share capital of Falanx.

The completion of the Placing is conditional, amongst other things, on the admission of the Placing and Subscription Shares to trading on AIM.

Application has been made for the 18,878,564 Placing and Subscription Shares issued pursuant to the Placing to be admitted to trading on AIM ("Admission"). Admission is expected to be effective on 13 May 2015. The New Ordinary Shares will rank pari passu in all respects with the existing issued ordinary shares.

Following Admission of the New Ordinary Shares, the Company's enlarged issued share capital will comprise 71,055,368 ordinary shares with each share carrying one vote per share. There are no shares held in treasury.

John Blamire, CEO of Falanx Group, commented:

"We are delighted to announce the successful £2.64 million placing, which is an important milestone in the progress of our international Cyber defence offering.  The extension to Falanx's partnership with Assuria will strengthen our combined offering and exceptional service to clients. We are also very pleased to welcome the Chairman of Assuria, Terry Pudwell to the Falanx advisory team. He is an expert in the field of Cyber Defence technology and will be a key asset in driving the partnership forward."

Enquiries:

Falanx Group Limited John Blamire, Chief Executive www.falanxgroup.com	+ 44 (0) 20 7856 9457
Charles Stanley Securities Nominated Adviser & Broker	[phone]
Mark Taylor
Redleaf PR Rebecca Sanders-Hewett/Jenny Bahr/ Rachael Brown	[phone]

Notes to Editors:

About Falanx Group

·    Falanx Group Limited is a global intelligence, security and cyber defence provider working with  blue chip and government clients.

·    The Group has three business divisions:

-  Falanx Intelligence: Political & Security Risk and Business Intelligence services

-  Falanx Resilience: Security Consultancy, Crisis Management and asset and facility security

-  Falanx Cyber: Comprehensive cloud-based cyber security services

·              The Group listed on AIM in June 2013 under ticker FLX.

·              For more information: http://www.falanxgroup.com/

About Assuria

Assuria is a UK based developer of robust and proven Cyber Security solutions that are used by government agencies, public sector departments and commercial companies worldwide. Assuria's software solutions are developed entirely in-house in the UK, using industry leading technologies, standards and processes.

 

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