TIDMRAM

RNS Number : 4057G

RAM Active Media PLC

28 June 2012

FOR IMMEDIATE RELEASE 28 June 2012

Placing and Issue of Equity

RAM ACTIVE MEDIA PLC ("RAM" or the "Company") ANNOUNCES A PLACING OF NEW ORDINARY SHARES TO RAISE CASH, FUND CAPITAL EXPENDITURE AND ACQUISITION.

The Board of RAM announces that it has today completed a placing of ordinary shares.

The Company has issued a total of 173,237,500 new ordinary shares of 1p each at a price of 1p per share for a mixture of cash (GBP632,375), capital commitments (GBP600,000) and a share for share exchange (GBP500,000) to raise GBP1,732,375 before expenses, with institutional and exempt investors on behalf of clients, its business partner Free Ray LLC, Dubai ("Free Ray") as well as Alpha Prospects PLC ("Alpha"). The new ordinary shares will, when issued, rank pari passu with the existing ordinary shares in issue and application will be made for 173,237,500 new ordinary shares to be admitted to trading on AIM. This is expected to be on 5 July 2012. The placing provides the Group with additional working capital.

Of the total, 80,000,000 ordinary shares were placed at the placing price with Free Ray. The placing will secure up to GBP600,000 in value of significantly discounted hardware assets and a cash consideration of GBP200,000 in order to provide funding for investment in a newly formed subsidiary RAM Interactive Limited (RI) and its currently owned subsidiary, RAM Vision Limited (RV), both offering a real time broadcaster solution in Digital out of Home advertising and content to major UK Shopping Malls, Events and Corporate venues. The new subsidiary will be trading as RAM Interactive Limited with the screen network brand as RAM 3D.

50,000,000 ordinary shares were issued to Alpha to acquire 22,222,222 new ordinary shares in Alpha. Alpha is a PLUS markets quoted investment company. The Alpha new ordinary shares were issued at 2.25p, against a current mid market price of 3p per ordinary share. Tim Baldwin, Executive Chairman of RAM is also a director and shareholder of Alpha. The Company's independent directors consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Pursuant to the placings announced today, the Company has been notified that Ruffer LLP will have an interest in 110,887,500 ordinary shares representing 24.97% of the issued share capital of RAM. Following the placing, Free Ray LLC will have an interest in 80,000,000 ordinary shares representing 18.01% of the issued share capital of RAM and Alpha Prospects PLC will have an interest in 52,529,324 ordinary shares representing 11.83% of the issued share capital of RAM.

Tim Baldwin, Executive Chairman commented:

"We are pleased to have secured additional funding from both existing and new shareholders as well as business partners. This funding and placing will be used to strengthen the group's balance sheet and to invest in the deployment of the UK's first major roll out of a 3D screen broadcast network in shopping malls, event and corporate venues which allows viewing without the need for wearing special glasses.

Further deployment of the Iconic landscape screen roll out in RAM Vision limited is also underway across the breadth of the Company's contracted UK shopping mall estate and a pipeline of new sites is under consideration. The current roll out and future site opportunities offer significant increase in consumer footfall for major brands and advertising agencies to gain access too. Figures from the Outdoor Media Centre is demonstrating that digital revenues were up 42% to GBP35.5m for the period quarter one 2012, reflecting increasing adoption of new technology in the sales of outdoor campaigns. Digital now makes up 16.7% of all outdoor revenues.

The Group belives that the roll out of RAM Interactive 3D roll out and further RAM Vision Iconic screens will achieve good rates of return on the capital deployed offering enhanced future revenues without much additional overhead required.

The funding helps secure asset finance supporting the screen roll out across our already contracted RAM Vision broadcast network. In additon, the ALPHA relationship is formed with a strategic view of future business opportunities, in particular seeking such opportunities to support the Group's previously announced British joint venture with China's Changzhou Evergreen Group in TrainFX limited and the global rail market sales potential in the TrainFX product portfolio.

For further information please call:

Tim Baldwin

RAM Active Media plc 0207 518 4300

Sandy Jamieson/Thilo Hoffmann

   Libertas Capital Corporate Finance Limited                                            0207 569 9650

Jon Bellis

XCAP Securities 0207 101 7070

This information is provided by RNS

The company news service from the London Stock Exchange

END

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