Conversion of £1.15 million Loan Notes

9th December 2016

CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets hereby announces that after market closing on 7 December 2016 it received a notice of conversion in respect of £1,150,000 of Tranche 1 Notes (based on the nominal value of such notes) issued to L1 Capital Global Opportunities Master Fund (“L1”).

Conversion of Loan Notes

The conversion of £1,150,000 of Tranche 1 Notes at a conversion price of 6.0 pence per Conversion Share (“Conversion”), the details of which were notified on 7 November 2016 (“Notes Announcement”) and pursuant to which 19,166,666 new ordinary shares (the “Conversion Shares”) are to be issued. Definitions used in this announcement are taken from the Company’s announcement dated 7 November 2016.

Under the terms of the Conversion the Company has also issued L1 with a warrant over 19,166,666 new ordinary shares in the Company with an exercise price the lower of:-

a) 90% of the closing bid price per ordinary share on the day immediately prior to the date of exercise of such warrants, or

b) 9.6875 pence per share. The terms of the Warrants are as stated in the Notes Announcement.

The remaining nominal value of the outstanding Tranche 1 Notes held by L1 is £0.05 million.

Application will be made for the admission of the Conversion Shares and Exercise Shares to trading on AIM and it is expected that dealings in the Shares will commence on or around 15 December 2016. The Shares will rank pari passu in all respects with the Company’s existing ordinary shares.

Following the issue of the Shares, the total number of ordinary shares in issue is 404,778,418. This number may be used by shareholders as the denominator for the calculation 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.

The suspension of the Company’s AIM securities will remain in place pending a further notification which will be made in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Cloudtag Inc. Amit Ben-Haim +1 345 949 45 44
UK Investor Relations. +44 (0) 20 7052 8469