Placing to raise £455,000

MySQUAR Limited ("MySQUAR" or the "Company")

Equity placing

MySQUAR, the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, is pleased to announce that it has raised GBP 455,000, before expenses, by way of a proposed placing ("Placing") of 13,000,000 shares ("Placing Shares") of no par value in the share capital of the Company at 3.5 pence per share ("Placing Price") with placees. For each Placing Share subscribed for, placees will also receive 1 warrant to subscribe for one new share of no par value each in the Company at an exercise price of 5.5 pence per share with a 3 year exercise period from admission of the Placing Shares to trading on AIM ("Admission"). The net proceeds of the Placing will be used to fund the working capital needs of the business including the ongoing development of new businesses including VoIP voice calling and gaming.

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued Shares, to be admitted to trading on AIM. It is expected that Admission will become effective and that trading in the Placing Shares will commence on or around 15 August 2016.

As part of the Placing arrangements, the Company shall issue 650,000 warrants to subscribe for new Shares to Beaufort Securities Limited, exercisable at the Placing Price for a period of 5 years from Admission.

Director's Dealing

In addition, the Company advises that Neil Osborn, a director of the Company intends to subscribe for a total of 571,429 shares on the same terms for a further sum of £20,000 following the announcement of the Placing.

Trading Update

As at 29 July 2016, total downloads across MySQUAR's apps including MyCHAT and its Destroyer King game exceeded 3 million.

The Company plans to release a new game (to be called "Myfish") in the first week of August, another game ("Invincible Sword") in September and intends to continue to release new games at a rate of one new game every two months.

In addition, the Company is currently negotiating a commercial agreement with a VoIP technology provider, and both sides are working on technical integration of their respective services. The voice calling business - similar to a highly successful counterpart in Cambodia - is targeted for launch in the 4th quarter of the calendar year 2016.

The Company's financial year ended on 30 June 2016 with unaudited results expected to be in line with market expectations with unaudited revenue of approximately USD $0.8m.

Total Voting Rights

In accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Company hereby announces that following Admission it will have 200,784,668 Shares in issue, none of which are held in treasury. Therefore, the total number of voting rights in the Company is 200,784,668.

The above figure of 200,784,668may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Eric Schaer, CEO of MySQUAR, said: "We are very pleased to report unaudited revenue and expenses in line with expectations. User growth has far exceeded the forecast at the time of our listing on AIM in July 2015 and the roll-outs of games and the planned voice business are confidently expected to contribute significant revenue. The additional funds raised in this fundraising will build further revenue streams as the business focuses on monetising its growing user base."

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR"). Market soundings, as defined in MAR, were taken in respect of the Placing, with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities. 

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