Conversion of £700,000 Loan Notes, Issue of Equity and Issue of Warrants

14th November 2016

CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets hereby announces that it has received notice of conversion in respect of £700,000 of Tranche 1 Notes (based on the nominal value of such notes) issued to L1 Capital Global Opportunities Master Fund (“L1”) at a conversion price of 9.5 pence per Conversion Share (“Conversion”), the details of which were announced to the market on 7 November 2016 (“Notes Announcement”) and pursuant to which 7,368,422 new ordinary shares (the “Shares”) fall 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 to L1 Capital Global Opportunities Master Fund 7,368,422 warrants 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) 11.25 pence per share. The terms of the Warrants are as stated in Notes Announcement.

Following Conversion, L1’s shareholding in the Company’s enlarged issued share capital shall represent 1.94% and the remaining nominal balance of the outstanding Tranche 1 Notes held by L1 is £1.8 million. In the event that the Escrow Amount is not released (as referred to in the Notes Announcement), the nominal balance of the Tranche 1 Notes outstanding (following the Conversion) will be £1.05 million.

Application will be made for the admission of the Shares to trading on AIM and it is expected that dealings in the Shares will commence on or around 18 November 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 379,295,962. 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.

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