Issue of Equity - Replacement (5182J)

TIDMRAM

RNS Number : 5182J

RAM Investment Group PLC

30 June 2011

The following amendment has been made to the 'Issue of Equity' announcement released on 30 June 2011 at 7.07 a.m. under RNS No 4307J.

The last sentence of the sixth paragraph should have read "Following the Placing, funds under the discretionary management of T1ps Investment Management Limited will have an interest in 16,335,294 Ordinary Shares, representing 6.26% of the issued share capital of RAM."

All other details remain unchanged.

The full amended text is shown below.

FOR IMMEDIATE RELEASE 30 June 2011

RAM INVESTMENT GROUP PLC

RAM RAISES GBP2.42 MILLION FROM PLACING OF NEW ORDINARY SHARES AND CONVERTIBLE LOAN NOTES

Ram Investment Group plc ("RAM" or the "Company"), the AIM-listed investor in digital out of home media and communications for the moving environment companies, announces that it has raised GBP2.27 million before expenses via a placing of new ordinary shares and loan notes ("Placing").

The Company has placed 113,625,000 new ordinary shares of 1p each ("Ordinary Shares") at 2p per share (the "Placing Price") with current institutional investors Hill Street Investments plc ("Hill Street"), Ruffer LLP and funds under the discretionary management of T1ps Investment Management Limited. The Placing Price represents a premium of 23% over the closing price of the Ordinary Shares of 1.625p as at close of business on 29 June 2011. The proceeds will be used for the repayment of the GBP1.5 million of loan notes owed to a company advised by Thames Valley Capital Limited ("TVC"), 14 months ahead of scheduled repayment, and ongoing working capital. As part of the settlement with TVC, the Company has agreed to a deed of variation whereby the exercise price of the warrants held by TVC over 39,500,000 Ordinary Shares is reduced to 2.5p per Ordinary Share.

The new Ordinary Shares will, when issued, rank pari passu with the existing Ordinary Shares in issue and application has been made for the 113,625,000 new Ordinary Shares to be admitted to trading on AIM. This is expected to be on 5 July 2011. Following the Placing, the enlarged share capital of the Company will be 260,892,952 Ordinary Shares.

The Company is also issuing GBP150,000 of unsecured convertible loan notes ("Loan Notes") to Hill Street. The Loan Notes can be converted at the same price of 2p per share at the election of either RAM or Hill Street. The Loan Notes to be redeemed by not later than 31 December 2011. Prior to repayment or conversion the Loan Notes will be subject to interest at the rate of 8% for per annum payable to Hill Street.

Pursuant to the Placing, the Company has been notified that Hill Street has subscribed for 67,500,000 new Ordinary Shares at the placing price and GBP150,000 in Loan Notes. Following the Placing, Hill Street will have an interest of 71,027,511 Ordinary Shares representing 27.22% of the issued share capital of the Company. Tim Baldwin, Chairman, is also chairman of Hill Street, in which he holds a beneficial interest. Following the Placing, Mr Baldwin's interest in the Company will be 76,879,438 Ordinary Shares representing 29.47% of the issued share capital of the Company.

Pursuant to the Placing, the Company has been notified that Ruffer has subscribed for 40,000,000 new Ordinary Shares at the placing price. Following the Placing, Ruffer will have an interest in 67,650,000 Ordinary Shares, representing 25.93% of the issued share capital of RAM. In addition, funds under the discretionary management of T1ps Investment Management Limited subscribed for 3,625,000 Ordinary Shares at the Placing Price. Following the Placing, funds under the discretionary management of T1ps Investment Management Limited will have an interest in 16,335,294 Ordinary Shares, representing 6.26% of the issued share capital of RAM.

As Tim Baldwin is a director of Hill Street, their participation in the Placing is considered a related party transaction under the AIM Rules for Companies. The Directors, with the exception of Tim Baldwin who is involved in the transaction as a related party, consider, having consulted with its Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Tim Baldwin said: "The proceeds of the Placing will put RAM on an even sounder footing as it continues to grow in the years ahead. This will give the Company a strong balance sheet, and ensure the cash generated can be used to reinvest in the businesses.

"The repayment of the loan notes will remove a barrier to the Company's development enabling it to grow both organically and by selective acquisition".

For further information please call:

Tim Baldwin RAM Investment Group plc 0207 518 4303

Sandy Jamieson Libertas Capital Corporate Finance Limited 0207 569 9650

Jon Levinson Rivington Street Corporate Finance Limited 0207 562 3357

This information is provided by RNS

The company news service from the London Stock Exchange

END

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