29 July 2016

GLI Finance Limited

(the "Company" or "GLI Finance")

Platform Black

The Board announces that, on 29 July 2016, Sancus BMS Group Limited ("Sancus BMS", a wholly owned subsidiary of the Company) acquired a further 24,888 ordinary shares, representing 10.72% of the issued ordinary share capital of Platform Black Limited ("Platform Black"), taking its holding to 94.65% at a £3.5m valuation. The ordinary shares were acquired from certain original minority ordinary shareholders in Platform Black.

Immediately following this transaction, Sancus BMS entered into an agreement with a consortium of high net worth private investors ("Minority Investor Group") whereby the Minority Investor Group will: 

·     Buy 23,209 ordinary shares representing 10% of Platform Black's issued ordinary capital for consideration of £350,000 settled in cash, taking the Sancus BMS holding back to 84.65%.

·     Buy 200,000 Platform Black Preference shares (out of 4.1 million in issue) for consideration of £200,000 settled in cash.

·     Provide lending capacity to Platform Black of up to £50m to expand the funder base operating through the platform.

·     Have the option, on or before 29 July 2021, to acquire for cash a further 20% of Platform Black's ordinary share capital from Sancus BMS at a £5m valuation.

·     Have the right to appoint three Non-Executive Directors to the board of Platform Black.       

Following the above transactions, Sancus BMS remains interested in 84.65% of Platform Black's issued ordinary share capital.  Platform Black will have an expanded funder base and be better positioned to maximise its potential from being rebranded to Sancus Finance with effect from 1 January 2017.

Platform Black recorded turnover and a post-tax loss of £0.4m and £1.6 respectively in the year ended 30 June 2015. Platform Black's net liabilities at 30 June 2015 were £0.5m. Platform Black became a subsidiary of Sancus BMS on 30 June 2016.

For further information, please contact:

GLI Finance Limited

Andy Whelan

+44 (0)1534 708900

Panmure Gordon (Nominated Adviser and Corporate Broker)

Dominic Morley

+44 (0)20 7886 2954

Peter Steel

+44 (0)113 357 1152

Charles Leigh Pemberton

+44 (0)20 7886 2906

Instinctif Partners (PR Advisor)

Tim Linacre/Nick Woods

+44 (0)207 457 2020

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

About GLI Finance

GLI Finance (www.glifinance.com) is a specialist provider of finance to small and medium sized enterprises. Its ordinary shares are quoted on the AIM and its issued zero dividend preference shares are listed and traded on the main market of the London Stock Exchange (tickers GLIF and GLIS (Ord) and GLIZ (2019 ZDP)). Loans are provided to SMEs through a variety of finance platforms in which GLI Finance has an equity stake.

The platforms in which GLI Finance is invested vary by geography, industry, size of lending and by type of lending. They include UK and US SME Lending, Offshore Lending, UK and European Invoice Discounting, Supply Chain Finance, Global Trade Finance, and UK Property-Backed Lending.