Hornby : Result of General Meeting, Placing and Open Offer

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR IN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW OR REGULATION.

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFERING OF SECURITIES FOR SALE IN THE UNITED STATES OF AMERICA AND NO SECURITIES HAVE BEEN OR WILL BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT 1933, AS AMENDED (THE 'SECURITIES ACT') OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES OF AMERICA NOR WILL THEY QUALIFY FOR DISTRIBUTION UNDER ANY OF THE RELEVANT SECURITIES LAWS OF CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA, NOR HAS ANY PROSPECTUS IN CONNECTION WITH THE SECURITIES BEEN LODGED WITH OR REGISTERED BY THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION. THE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OF AMERICA. THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES OF AMERICA.

THIS ANNOUNCEMENT, WHICH DOES NOT CONSTITUTE A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT FOR THE PURPOSES OF THE PROSPECTUS RULES AND HAS NOT BEEN, AND WILL NOT BE, APPROVED BY, OR FILED WITH, THE FINANCIAL CONDUCT AUTHORITY. IT DOES NOT CONSTITUTE OR FORM PART OF, AND SHOULD NOT BE CONSTRUED AS, AN OFFER TO SELL OR ISSUE, OR A SOLICITATION OF ANY OFFER OF OR INVITATION TO BUY OR SUBSCRIBE FOR, ANY SECURITIES, NOR SHALL IT (OR ANY PART OF IT), OR THE FACT OF ITS DISTRIBUTION, FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, OR ACT AS AN INDUCEMENT TO ENTER INTO, ANY CONTRACT OR COMMITMENT WHATSOEVER. ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE APPLICABLE SECURITIES LAWS IN SUCH JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE A RECOMMENDATION REGARDING ANY SECURITIES. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS ON THE INFORMATION IN THE CIRCULAR TO BE PUBLSIHED BY THE COMPANY AND ANY SUPPLEMENT THERETO.

8 July 2016

Hornby plc

('Hornby' or the 'Company')

Result of General Meeting

and

Result of Placing and Open Offer

On 22 June 2016, Hornby announced a proposed Placing and Open Offer to raise, in aggregate, approximately £8.0 million (before expenses) through the issue of 29,629,630 New Ordinary Shares at an issue price of 27 pence per New Ordinary Share.

The Company is pleased to announce that at its General Meeting held earlier today, all of the Resolutions set out in the circular dated 22 June 2016 were duly approved.

Further to this, the Company can now confirm that it will issue, pursuant to the Placing and Open Offer, 29,629,630 New Ordinary Shares at 27 pence per share, raising approximately £8.0 million. The issue of New Ordinary Shares will be split as follows:

· 21,518,686 shares under the firm element of the Placing, raising gross proceeds of approximately £5.8 million;

· 2,850,334 shares taken up under the Open Offer, including excess applications, raising gross proceeds of approximately £0.8 million; and

· 5,260,610 shares under the conditional element of the Placing, raising gross proceeds of approximately £1.4 million.

Application has been made for the 29,629,630 New Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will become effective and trading will commence in the New Ordinary Shares at 8.00 a.m. on 11 July 2016. Following Admission the Company's issued share capital will comprise 84,583,204 Ordinary Shares. From Admission, the figure of 84,583,204 may 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 to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Roger Canham, Executive Chairman said,

'Since the trading update in February, we have received strong support from our shareholders and our lending bank, which has culminated in the placing and open offer being comfortably oversubscribed. The take-up of the Open Offer was particularly strong with many shareholders' applications scaled back due to excess demand.

The proceeds of the fundraising will strengthen our balance sheet and means we are well positioned to execute the new business plan, as outlined in the circular. We look forward to updating shareholders on progress in due course.'

Defined terms used in this announcement will have the meanings (unless the context otherwise requires) set out in the circular dated 22 June 2016, which is available on the Company's website www.hornby.plc.uk.

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