City of London Group plc announced that it has entered into an agreement with returning investor Parasol V27 Limited for a private placement of 17,250,000 common shares at a price of £0.6 per share for gross proceeds of £10,350,000 on August 23, 2021. The company will also issue over 8,625,000 warrants to the investor which is equal to one warrant for every two shares subscribed. The warrants will allow the holder to subscribe for an agreed number of shares at £0.69 per share exercisable over a three-year period from completion of the subscription. The transaction is subject to shareholder approval. The shares to be issued are subject to a 12 month lock up period subject to customary exceptions following the subscription. The transaction is expected to close in September 2021.