CloudTag : Proposed Subscription of £550,000

CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets, announces a proposed subscription (the 'Subscription') of £550,000 through the issue of 3,548,388 new ordinary shares ('Shares') at a price of 15.5 pence per Share being the mid-market closing price on the 26 September 2016 ('the Subscription'). There are no commissions or expenses payable in relation to the Subscription and the proceeds of the Subscription will be used for general working capital purposes. The Company has received non-binding indications of interest from potential investors for the Subscription during a pre-marketing process.

Assuming that the Shares are fully subscribed for, application will be made for the admission for the 3,548,388 to trading on AIM and it is expected that dealings in the Shares will commence on or around 3 October 2016. The Shares will rank equally in all respects with the Company's existing ordinary shares. A further update announcement will be made in due course.

The Market Abuse Regulation ('MAR') became effective from 3 July 2016. Market Soundings, as defined in MAR, were taken in respect of the proposed Subscription with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. 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.