Statement re. Update to Proposals for the futur...

Statement re. Update to Proposals for the future of the Company

Gresham House plc

Gresham House plc (the “Company”)

Update to Proposals for the future of the Company

Introduction

The board of directors of the Company (the “Board”) is pleased to announce that it is continuing to progress the transaction, outline terms of which were announced on 25 June 2014 and updated on 28 August 2014, which is expected to provide a new strategic direction for the Company including a proposed fundraising. The various elements of the transaction have previously been referred to as the “Proposals”.

Placing Update

As previously announced, one of the key elements of the Proposals is the placing of new ordinary shares to new investors. As announced on 28 August 2014, it is expected that the placing price will be set at the net asset value per ordinary share as at 30 June 2014 as adjusted to reflect any movement in the share price of SpaceandPeople plc (being the only material quoted investment in the Group’s portfolio) between 30 June 2014 and the latest practicable date prior to finalisation of the investor documentation, discounted by 11.25 per cent.

The proposed terms of the placing have been revised so that the targeted fundraise is now in the region of £10 million to £13 million. This will result in a reduced dilution to existing shareholders but is not expected to affect the new management team's strategy or the other terms of the Proposals. Expressions of interest for an amount in excess of the minimum fundraise have been received by the Company’s advisers.

Posting of the Circular

The Board expects shortly to conclude the fundraising, to be in a position to announce the detailed terms and to post a circular to shareholders convening the general meeting to approve the resolutions necessary to give effect to the Proposals, together with an AIM admission document.

This announcement is for information purposes only and does not constitute an offer to sell or an invitation to purchase any securities or the solicitation of an offer to buy securities pursuant to the Proposals or otherwise.

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Enquiries:
Gresham House plc John Lorimer Brian Hallett				07785 115029 01489 570 861
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Westhouse Securities Limited Robert Finlay Richard Johnson				020 7601 6100
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