8COMMON LIMITED — Capital/Financing Update 2020

Feb 10, 2020

8common

ASX Release

11[th] February 2020

Option Exercise provides capital for continued investment

Fintech company 8common Limited ( 8common or the Company ) (ASX: 8CO ), a leader in expense management software and card application management, announces an update on the conversion of options.

Key highlights:

• Final tranche of 15,791,313 8COO listed options have recently converted providing 8CO with a cash injection of $552,696. The 8COO options have now expired with 1,095,281 options having lapsed or been cancelled;

• The Company’s net cash position is now circa $1.9 million;

• Since February 2018, 56,908,841 8COO options have been exercised providing the Company with a total cash injection of $1.99 million;

• $2.9m Annualised Recurring Revenue (ARR) at the end of December 2019;

• The improving balance sheet position for 8Common provides the ability to invest more rapidly into people and infrastructure to support future growth options;

  • CardHERO: A design phase consulting engagement paid for by a significant not-forprofit (NFP) organisation to deliver CardHERO. CardHERO is a traceable expenditure solution using pre-paid cards leveraging the Expense8 platform. The revenue model will be based on a combination of subscription fees and basis point margin of the total value of the amount loaded on the pre-paid cards. The engagement with the client continues and conversations with other prospects have begun.

  • Expense8: The company has a significant pipeline of potential revenue growth via the implementation of our technology across further DIIS and DoF shared service agencies. Activity levels are expected to increase in the first half of calendar 2020. Investing in people, implementation capabilities and partner programs will fast track recurring revenue delivery and ensure the successful delivery of the Expense8 product.

8common Executive Chairman, Nic Lim said “8Common remains a leader in the travel and expense management software sector for large Australian enterprises and government agencies and we continue to invest in in a robust infrastructure network to support future growth. This cash injection will enable us to increase new product development and platform functionality, improving our ability to deliver customised solutions to meet the changing needs of our clients.

CEO Andrew Bond commented “CardHERO will diversify 8Common beyond our current product portfolio and target markets delivering a closed the loop fund disbursement pre-paid card program. While it is initially being developed for a Not For Profit, we see the pre-paid card management sector as being one that holds potential for new industry verticals and enterprise customers.

“We aim to leverage our improved cash position to build a reseller model for Expense8, enabling us to cost effectively and sustainably acquire new users without increasing our overheads. This capital will us to strategically execute on these objectives and increase the rate of the Company’s growth.”

8common

Further information

CorporateNic Limnic@8common.comExecutive Chairman	InvestorsCraig Sainsburycraig.sainsbury@marketeye.com.au	MediaTristan Everetttristan.everett@marketyeye.com.au+61 403 789 096

About 8common Limited

8common (ASX:8CO) solutions deliver enterprise grade financial transaction processing for government entities and large enterprise businesses. Its flagship Expense8 platform is a leading pureplay provider of end to end travel expense management software, card application and management. The innovative software solutions improve organisation, productivity, incorporate company organisational policies and expense auditing to reduce fraud. Expense8 by 8common was named a Major Player in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Travel and Expense Management Applications 2019 Vendor Assessment.

Its new products being PayHERO (procurement payment gateway) and CardHERO (pre-paid card fund distribution) deliver closed loop solutions to support regulated, large network and high volume requirements.8common’s specialises in large enterprise and government segments.

Its growing client base of more than 120,000 platform users include enterprise customers Woolworths, Broadcast Australia, Amcor, and over 120 state and federal government entities. For more information, visit https://www.8common.com/