Nektan : PLACING AND SUBSCRIPTION OF NEW SHARES

18 December 2017

NEKTAN PLC

('Nektan', the 'Company' or the 'Group')

PLACING AND SUBSCRIPTION OF NEW SHARES TO RAISE £1.76 MILLION

Nektan PLC (AIM: NKTN), a leading international gaming solutions and services provider, today announces that it has raised gross proceeds of approximately £1.76 million by way of a placing and a subscription of new shares. The Company has placed 5,095,243 new ordinary shares of £0.01 each (the 'Ordinary Shares') in the Company (the 'Placing' and the 'Placing Shares'), at a price of 21 pence per share (the 'Placing Price') raising gross proceeds of £1,070,001. In addition, 3,283,496 new Ordinary Shares were subscribed for (the 'Subscription Shares') at 21 pence per share (the 'Subscription Price'), raising gross proceeds of £689,534 (the 'Subscriptions').

The Placing Price and the Subscription Price represent a discount of 21.4 per cent. to the closing mid-market price on 15 December 2017, being the last business day prior to the date of this announcement, and a discount of 12.4 per cent. to the average closing mid-market price of the 5 previous days. The net proceeds of the Placing and the Subscriptions will be used to continue to invest in the Company's platform and exploit further growth opportunities. 2,714,291 Placing Shares were placed with investors by Daniel Stewart & Company plc which will receive 27,143 new Ordinary Shares as part of its commission in connection with the Placing (the 'Commission Shares').

Application has been made for 8,405,882 new Ordinary Shares (being the Placing Shares, the Subscription Shares and the Commission Shares) to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective, and dealings will commence in the new Ordinary Shares at 8.00 a.m. on 20 December 2017. The 8,405,882 new Ordinary Shares will on Admission rank pari passu in all respects with the existing ordinary share capital of the Company.

Following Admission, the total number of the Company's Ordinary Shares in issue will be 44,441,174 Ordinary Shares (the 'Enlarged Share Capital') and the Placing Shares, the Subscription Shares and the Commission Shares will, in aggregate, represent 18.9 per cent. of the Enlarged Share Capital.

Pursuant to the Subscriptions, the Company has entered into a subscription agreement with Toscafund Asset Management LLP ('Toscafund') which has subscribed, on behalf of its clients, for 1,190,476 new Ordinary Shares at the Subscription Price. Following Admission, Toscafund will control 3,917,749 Ordinary Shares, representing 8.8 per cent. of the Enlarged Share Capital.

Furthermore, certain members of the Company's management team have also subscribed directly with the Company at the Subscription Price for a total of 1,078,733 Ordinary Shares.

Jim Wilkinson, the Company's Chairman, has subscribed directly for 257,143 Subscription Shares. Following Admission, Jim Wilkinson will own 559,099 Ordinary Shares, representing 1.3 per cent. of the Enlarged Share Capital.

In addition, the Company has reached agreement with the Convertible Loan Note ('CLN') holders to amend the terms of the Series A CLNs with effect from today to remove any further warrants that are currently granted on deferral of the payment of quarterly interest by the Company. Following Admission, the CLN conversion price will adjust to 26.25 pence, being a 25 per cent. premium to the Placing Price and the Subscription Price.

Under the terms of the loan facilities agreed in July 2017 with Gary Shaw and Sandeep Reddy, £1,185,000 and £800,000 has been drawn down and 6,351,600 and 4,288,000 warrants at 27.5 pence have been issued respectively. Following Admission, 2,064,270 and 1,393,600 anti-dilution warrants will be issued with an exercise price of 1p per warrant. This will take the average price of the total warrants issued in connection with the July 2017 loan facilities to 21p.

Following Admission, the Enlarged Share Capital will comprise 44,441,174Ordinary Shares, with voting rights. The Company does not hold any ordinary shares in treasury, therefore the total number of Ordinary Shares in the Company with voting rights will be 44,441,174. This figure 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 in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Gary Shaw, Interim CEO of Nektan, said:

'I am delighted to announce the successful conclusion of a fundraising which has been supported by existing and new shareholders as well as certain members of the Company's management team. Nektan values the ongoing support it has received, in particular from Toscafund, one of its largest shareholders, and also welcomes the new investors to the Company. The net proceeds from the Placing and the Subscription will enable the business to continue to invest in the Evolve gaming platform and the Company's geographic expansion into Asia and North America.'

For further information on the Group, please contact:

Further information on Nektan can be found on the Group's website atwww.nektan.com

About Nektan:

Nektan is a leading international B2B mobile gaming solutions and services provider, operating in the regulated, interactive real money gaming (RMG) gaming space, delivering original and innovative solutions to commercial organisations that have established online audiences.

Nektan's full end-to-end technology platform, Evolve, simplifies and supports the route to mobile and desktop gaming revenues, managing the full customer experience and back-office operations, allowing commercial partners to focus on marketing the product to their consumers.

Nektan's US operating subsidiary, provides US land-based casinos with in-venue mobile gaming solutions which allow operators to add mobile technology and content to their existing offerings, with products accessible to players across both cabinets and mobile devices inside the casinos. Respin has a strong intellectual property portfolio including game patents for Rapid Games™ (on-property mobile entertainment), and other captivating concepts and brands.

Nektan is headquartered in Gibraltar, regulated by the Gibraltar Licensing Authority and the UK Gambling Commission, as well as in the Irish market and maintains sales and customer support operations in its two primary geographical targets, Europe and North America. The proprietary Evolve technology is developed and maintained by a talented and experienced team of employees from Nektan's Indian office.

Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.