Global Market : Replacement - Fundraising by the subsidiary of GMG

15 September 2015

The headline for the Global Market Group Ltd announcement released on September 14, 2015 at 17:20 under RNS No 0212Z should read Fundraising by Global Market's subsidiary.

The announcement text is unchanged and is reproduced in full below.

Global Market Group Limited

("Global Market" or the "Company")

Fundraising by Global Market's subsidiary

Global Market is pleased to announce that its subsidiary, Global Market Group (Guangzhou) Limited ("GMGZ"), has entered into conditional subscription agreements to raise up to RMB 53.5 million (approximately £5.44 million) through the subscription for cash (the "Subscription") by Zhuhai Lu Xun Tong Logistic Co., Ltd, Li Runming, Li Dequiang, Huang Zhiliu , Luo Yuwei and Foshan Shunde Beijiao Xinwei Electric Appliance Co., Ltd. (the "Investors") of 1,307,967 new shares in GMGZ at RMB 40.91 per share ("Issue Price"). The individual Investors will establish new Chinese holding companies (as required) to this effect.

On the basis of total maximum subscription proceeds of RMB 53.5 million ("Subscription Proceeds"), the investment by the Investors in GMGZ has been undertaken at a pre-money valuation of GMGZ of RMB1.8 billion (approximately £182.89 million). On completion of the Subscription, this will equate to the Investors having a 2.89% equity interest in the enlarged share capital of GMGZ. Extrapolated to the AIM Company, the dilutive effect would be 2.89%, and thus the Directors believe the terms achieved by this fund raise, and access to capital at this valuation level to be beneficial to Company shareholders.

RMB 20.6 million of the Subscription Proceeds due from Investors to GMGZ have now been received, and the remaining Subscription Proceeds are due within three weeks, i.e. within 5 business days of GMGZ obtaining local commercial administrative approvals of the registration of the Investors as new shareholders of GMGZ.

The Company intends to use the Subscription Proceeds to continue to develop the Group's technology platforms for providing e-commerce services to manufacturers and buyers.

Commenting on the Subscription, David Ling, the Chairman and Chief Executive Officer of the Company, said:

"We are delighted to have received such strong support from new shareholders for this fundraising, which was priced at a premium to our last financing. We will now be able to invest further in the GMC system, specifically with a view to providing an enhanced user experience for users of our e-commerce platforms."

The Subscription Agreements

All GMGZ shareholders have now signed conditional subscription agreements (the "Subscription Agreements") with each of the Investors under which the Investors will subscribe for a total of 1,307,967 shares in GMGZ at the Issue Price. The Subscription Agreements contain the same terms save as to the number of GMGZ shares to be subscribed by each Investor, details of which are set out below.

Under the terms of the Subscription Agreements, each Investor must pay a deposit of 20% of his Subscription Proceeds within 1 business day of the date of the Subscription Agreement. These payment have now all been received. The remaining 80% of the proceeds will be received within 5 business days of the date on which GMGZ obtains local government approvals of the registration of the Investor as a new shareholder of GMGZ. If an Investor fails to pay its Subscription Amount when due, then the Investor must pay to GMGZ 0.1% per day on the overdue amount. If an Investor fails to pay any part of its Subscription Proceeds for a period of not less than 10 days, then GMGZ is entitled to terminate the Subscription Agreement and the Investor must compensate GMGZ for its loss. Other terms of the Subscription Agreement include a GMGZ confirmation that it intends to issue no more than 5 million shares in this round, and that it is considering all its various liquidity options, including the possibility of pursuing a listing on a secondary or junior PRC based market for the shares of GMGZ. The agreement also includes certain investor protection rights which, although common in the Chinese market, would most likely not be applicable to listings in the UK.

Information on GMGZ, GMGA and GSCT

The Company indirectly owns a 99.98 interest in GMGZ, which is a limited liability company incorporated under the laws of China. GMGZ is the Company's principal operating subsidiary and engages in B-2-B e-commerce business by operating an online marketplace to connect high-quality manufacturers in China with buyers from all over the world. For the financial year ending 31 December 2014, the book value attributed to GMGZ's assets in the Company's audited accounts is approximately RMB 267.332 million (approximately £27.161 million) and the amount of net profits attributable to GMG in the Company's accounts is approximately RMB9.129 million (approximately £0.928 million).

The Company owns 100% of GMGA, incorporated in Hong Kong, which in turns owns a 99.98% equity interest in GMGZ. GSCT a company incorporated under the laws of China, owns 0.02% of GMGZ. GSCT is owned by David Ling, the CEO of the Company, and his brother, Mr Weinian Pan both of whom are related parties.

Information on the Investors

The Investors are subscribing for new GMGZ shares in the Subscription pursuant to their respective Subscription Agreement. Details of the Investors and their Subscriptions are as follows:

About Global Market Group Limited

Global Market generates revenues by operating the online portal www.globalmarket.com that connects high-quality manufacturers in China with buyers from all over the world. GMC manufacturers listed on the portal with "GMC" logo undergo independent quality audits conducted by Germany's respected TUV Rhineland group ("TUV") to gain Global Manufacturer Certificate (or "GMC") certification, assuring international buyers they have met demanding and independently-assessed certification standards, thus reducing risk, building trust, and providing a convenient and inexpensive route for manufacturers to access an international buying audience. Manufacturers pay to use the web portal, and international buyers are offered free access.

For further information, please visit www.globalmarket.com or contact:

David Ling/ Cheandy Hu/ Mophy Fan

Global Market Group Limited: +86 (20) 8600 2299

Martin Davison

Westhouse Securities Limited, Broker: +44 (0)20 7601 6100