Investment in Pinnacle Technology Group plc

28 April 2015

MXC Capital Limited

("MXC")

Investment in Pinnacle Technology Group plc ("Pinnacle", the "Group" or the "Company")

MXC is pleased to announce that it has entered into a conditional agreement to cornerstone a placing by Pinnacle of 13,164,122 new Ordinary Shares at a price of 6.5 pence per new Ordinary Share raising approximately £0.86 million (the "Placing"). MXC Capital is subscribing for 5,918,256 Ordinary Shares in the Placing, amounting to 10 per cent. of the enlarged issued share capital of the Company, and has been granted, subject to certain vesting conditions, 7 year warrants over 5 per cent. of the enlarged share capital at the time of exercise at the placing price of 6.5p per share.

The purpose of the Placing is to facilitate a strategic investment by MXC Capital and to provide funds to be used by Pinnacle to implement the Company's growth strategy and to fund the working capital requirements of the Group. The Company has also appointed MXC Capital to provide corporate finance advisory services to the business.

The Placing is conditional, inter alia, on the passing of Resolutions by Pinnacle Shareholders at the General Meeting, notice of which is set out in a Circular being posted to shareholders later today. 

Marc Young, CEO of MXC Capital, said: "We have known Pinnacle for some time. We see an opportunity to work with management to drive the Company's strategy, identify acquisition opportunities and accelerate its growth."

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About MXC Capital

MXC is a specialist merchant bank with a track record of investing in and advising companies in the TMT sector. We bring together a deep knowledge of technology, first-hand experience of managing companies in the sector, an ability to make meaningful investments and a highly experienced corporate advisory team in support, all of which we combine to grow shareholder value.