Director/PDMR transactions

20 July 2016

Mercom Capital Plc

("Mercom" or "the Company")

Director/PDMR transactions

Following the announcement released earlier today in relation to the Placing, the Company is pleased to announce that John Zorbas and Kyle Appleby have now respectively subscribed for 2,400,000 and 600,000 Ordinary Shares of 0.1p each, on the same terms as the Placing.

As a result, the Company has now conditionally raised £300,000 by the issue of 12,000,000 new Ordinary Shares of 0.1p each ("the Placing Shares"). The Placing Shares represent 40.8 per cent. of the enlarged issued share capital of the Company.

The subscription for a total of 3,000,000 Placing Shares by John Zorbas and Kyle Appleby (the "Directors' Placing Participation") is a related party transaction under the AIM Rules for Companies. The Independent Director not participating in the Placing, namely Patrick Cross, having consulted with the Company's nominated adviser, Northland Capital Partners Limited, considers that the terms of the Directors' Placing Participation are fair and reasonable so far as the shareholders of the Company are concerned.

Application for Admission and Block Admission

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing Ordinary shares, to be admitted to trading on AIM ("Admission"). Application will also be made for the Block Admission of up to 6,000,000 new Ordinary Shares of 0.1p each which may be issued pursuant to the exercise of warrants granted in connection with the Placing. It is anticipated that Admission and the Block Admission will become effective on 29 July 2016.

Following Admission, the interests of the Directors in the Company's enlarged share capital will be as follows:

Total voting rights

Following Admission, the Company's share capital will consist of 29,426,773 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury. Therefore, the total number of voting rights in the Company is 29,426,773. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Rules and Transparency Rules.

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014. The information set out below is provided in accordance with the requirements of Article 19(3) of that Regulation.