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ADVANCED BRAKING TECHNOLOGY LTD Capital/Financing Update 2019

Jan 14, 2019

64282_rns_2019-01-14_9ba188e9-ed04-47b4-970d-7d18270642ff.pdf

Capital/Financing Update

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19 Creative Street Wangara WA 6065

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Telephone: +61 8 9302 1922 www.advancedbraking.com

15[th] January 2019

Company Announcements Office Australia Securities Exchange

CLEANSING NOTICE issued under section 708(12C)e) of the Corporations Act 2001 (Cth) (as inserted by ASIC Corporations (Sale Offers: Securities Issued On Conversion of Convertible Notes) Instrument 2016/82)

1. INTRODUCTION

This Cleansing Notice has been prepared by Advanced Braking Technology Limited ( Company ) for the purposes of section 708A(12C)(e) of the Corporations Act 2001 (Cth) (Corporations Act) (as inserted by ASIC Corporations (Sale Offers: Securities Issued On Conversion of Convertible Notes) Instrument 2016/82). Issuing this Cleansing Notice enables the fully paid ordinary shares in the capital of the Company (Shares) issued on the conversion of the convertible security issued by the Company on the terms described below to be on-sold to retail investors without further disclosure .

This Cleansing Notice is important and should be read in its entirety.

2. BACKGROUND AND CONTENTS OF CLEANSING NOTICE

The Company wishes to inform the market that it has entered into an agreement to raise a total of $0.234 million by the offer (Offer) of a total of 11,700,000 unsecured convertible notes (Convertible Notes).

Shareholder approval will be sought to issue a further 25,000,000 unsecured convertible notes raising $0.500 million to a Director of the Company under the same terms of the new Convertible Notes.

The Offer was made to investors who are sophisticated, experienced or professional investors for the purposes of section 708 of the Corporations Act.

The Company currently has 14,540,000 convertible notes on issue, of which 11,221,250 have elected to rollover on the same terms as the new Convertible Notes. 3,318,750 convertible notes will be redeemed for cash in accordance with the subscription agreement.

The terms of the Convertible Notes are set out in a convertible note subscription agreement (Subscription Agreement) executed by the Company in favour of the subscribing noteholders (Noteholders) , and are summarised in Section 4 below.

The New Convertible Notes are for the principal or nominal amount $0.02 per note which is paid for in full by the subscribing Noteholder on application. The Convertible Notes bear interest at the rate

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

of 15% per annum payable to the Noteholders every three months in arrears and have a maturity date of 30 June 2019 (Maturity Date).

The Company’s directors (Directors) consider that the raising of capital by the issue of the Convertible Notes is in the best interests of the Company as it will secure, on acceptable terms, funding that is likely to be required by the Company for the continued development and growth of its business.

In particular, the Company intends to use the proceeds from the issue of the Convertible Notes:

  • (a) to refinance $0.265 million of convertible notes that are due for repayment in January 2019;

  • (b) for general working capital purposes.

This Cleansing Notice sets out the following:

  • (c) In relation to the Offer:

  • 1) the effect of the issue on the Company;

  • 2) a summary of the rights and liabilities attaching to the Convertible Notes;

  • 3) a summary of the rights and liabilities attaching to the Shares that will be issued on conversion of the Convertible Notes.

  • (d) Any information that:

  • 1) has been excluded from continuous disclosure notice in accordance with the ASX Listing Rules;

  • 2) is information that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

    • A. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; and

    • B. the rights and liabilities attaching to the Shares; and

  • 3) any other information relating to the Company’s status as a disclosing entity and where documents may be obtained.

3. THE EFFECT OF THE OFFER ON THE CAPITAL STRUCTURE OF THE COMPANY

  • 3.1 Effect of the issue on the Company

The principal effects of the issue of the Convertible Notes on the Company will be to:

  • (a) increase the Company’s cash reserves by $0.468 million upon the issue of the Convertible Notes (before any expenses associated with the issue of the Convertible Notes);

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

  • (b) give rise to the Company having liability for the amount of the face value of the Convertible Notes ( Redemption Amount ); and

  • (c) if the Convertible Notes are converted, either whole or in part, increase the number of Shares on issue as a consequence of the issue of Shares on conversion of the Convertible Notes ( Conversion Shares ).

Pro forma balance sheet of the Company taking into account issue of the Convertible Security

  • (a) Set out below is a pro forma consolidated Statement of Financial Position as at 31/12/18 for the Company based on the consolidated Statement of Financial Position as at 30/06/18 for the Company adjusted to reflect the capital raising completed by the Company in August 2018, and the proposed Convertible Notes issue and has been prepared on the basis of the accounting policies normally adopted by the Company.

  • (b) The pro forma financial information is presented in an abbreviated form in so far as it does not include all of the disclosures required by Australian Accounting Standards applicable to annual financial statements. The pro forma financial information is not audited. The classification of the allocations between debt and equity for the Convertible Notes may change in the future.

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Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

3.2 Potential effect on Share Structure

  • (a) As at the date of this Cleansing Notice the issued capital of the Company and the performance rights held in respect of the Company is as follows:
Type of security Securities prior to the issue of the new Convertible
Notes
Shares 297,049,796
Convertible Notes
Face Value $0.08 convertible at
$0.02
11,221,250
  • (b) The Company has issued 11,700,000 New Convertible Notes at $0.02 per Convertible Note in order for the Company to raise a total amount $0.234 million.

  • (c) The Company intends to issue 25,000,000 New Convertible Notes at $0.02 per Convertible Note upon shareholder approval in order for the Company to raise a total amount $0.500 million.

  • (d) The capital structure of the Company will be affected by the conversion of the Convertible Notes by the Noteholders which will result in additional Shares being issued and the liability position of the Company decreasing accordingly.

  • (e) The number of Shares issued under the Convertible Notes will be calculated by dividing the amount elected to be converted by $0.02 per Share (Conversion Price ).

  • (f) The Convertible Notes can be converted at any time prior to the Maturity Date at the request of the Noteholder; or will automatically be converted into Shares at the Conversion Price on the Maturity Date.

  • (g) If the Noteholders convert the maximum number 22,921,250 Convertible Notes then (assuming the Conversion Price remains at $0.02) 56,585,000 Shares would be issued. The actual effect on the Share capital of the Company will differ depending on how many Convertible Notes are converted. The effect on the issued ordinary share capital of the Company on conversion of all the Convertible Notes is set out in the table below;

Type of security Securities prior to the issue of
the new Convertible Notes
Shares(prior to conversion) 297,049,796
Shares issued assuming conversion of all Convertible Notes
with a
Face Value at$0.08 convertible at$0.02
44,885,000
Shares issued assuming conversion of all Convertible Notes
with a
Face Value at$0.02 convertible at$0.02
11,700,000
Shares issues assuming shareholder approval for related
partyConvertible Notes
25,000,000
Total Shares on issue following conversion of all
Convertible Notes
378,634,796

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

4 RIGHTS AND LIABILITIES ATTACHING TO THE CONVERTIBLE NOTES

A summary of the key terms of the Convertible Notes are set out at attachment A.

5 RIGHTS AND LIABILITIES ATTACHING TO SHARES ISSUED ON CONVERSION OF THE CONVERTIBLE SECURITY

The Shares to be issued to the Noteholders on the conversion of the Convertible Notes will rank equally in all respects with all of the Company’s existing Shares. The rights attaching to Shares, including the new Shares to be issued to the Noteholders on the conversion of the Convertible Notes, are set out in the Company’s constitution ( Constitution ) and, in certain circumstances, regulated by the Corporations Act, the ASX Listing Rules and the general law.

Full details of the rights and liabilities attaching to Shares are set out in the Constitution, a copy of which can be inspected, free of charge, at the Company’s registered office during normal business hours.

The following is a broad summary of the rights, privileges and restrictions attaching to all Shares. This summary is not exhaustive and does not constitute a definitive statement of the rights and liabilities of shareholders:

Voting

Every holder of Shares present in person or by proxy, attorney or representative at a meeting of shareholders has one vote on a vote taken by a show of hands and, on a poll, one vote for every fully paid Share held by him or her.

Dividends

The Directors may declare a dividend is payable and fix the amount and the time for and method of payment.

All fully paid Shares on which any dividend is declared or paid, are entitled to participate in that dividend equally.

Transfer of Shares

Shares may be transferred, and transfers may be registered, in any manner required or permitted by the ASX Listing Rules. The Company must comply with and give effect to those rules and it may, in accordance with those rules, decline to issue certificates for holdings of Shares.

Meetings and notice

Each shareholder is entitled to receive notice of and to attend general meetings of the Company and to receive all notices required to be sent to shareholders under the Constitution.

Issue of further Shares

The Directors may allot, issue or grant options in respect of, further Shares on such terms and conditions as they see fit subject to compliance with the Corporation Act and the ASX Listing Rules.

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

Variation of rights

If at any time the Share capital of the Company is divided into different classes of Shares, the rights attached to any class, may be varied or cancelled with the sanction of a special resolution of the Company (which must be passed by at least 75% of shareholders present and voting at a general meeting) and with either:

  • (a) the consent in writing of the holders of 75% of the issued Shares of that class, or

  • (b) by a special resolution passed at a meeting of the holders of the Shares of that class (which must be passed by at least 75% of class members present and voting at the meeting).

Non-marketable parcels

The Constitution contains procedures to enable the Company to seek to sell non-marketable parcels on Shares on behalf of shareholders, unless the shareholder requests otherwise.

6 THE COMPANY IS A “DISCLOSING ENTITY”

The Company is a “disclosing entity” under the Corporations Act and, accordingly, is subject to regular reporting and disclosure obligations under both the Corporations Act and the ASX Listing Rules.

These obligations require the Company to notify ASX of information about specific events and matters as they arise. In particular, the Company has an obligation under ASX Listing Rule 3.1 and section 674 of the Corporations Act 2001 (subject to certain limited exceptions) to notify the ASX immediately once it is or becomes aware of information concerning the Company that a reasonable person would expect to have a material effect on the price or value of the Shares.

The Company is also required to prepare and lodge with ASIC yearly and half-yearly financial statements accompanied by a Directors’ statement and report, and an audit report or review. Copies of documents lodged with ASIC in relation to the Company may be obtained from, or inspected at, an ASIC office.

7 COPIES OF DOCUMENTS

The Company will provide a copy of each of the following documents, free of charge, to any person on request:

  • (a) The annual financial report most recently lodged by the Company with ASIC, being the financial report of the Company for the year ended 30 June 2018 ( 2018 Financial Report

  • (b) Any half-year financial report lodged by the Company with ASIC after the lodgement of the 2018 Financial Report and before the lodgement of this Cleansing Notice with ASX; and

  • (c) Any continuous disclosure documents given by the Company to ASX after the lodgement of the 2018 Financial Report and before the lodgement of this Cleansing Notice with ASX.

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

A list of the continuous disclosure documents given by the Company to ASX after the lodgement of the 2018 Financial Report and before the lodgement of this Cleansing Notice with ASX is set out in the table below.

Date Announcement
19/12/2018 Change of Director's Interest Notice
19/12/2018 Change of Director's Interest Notice
19/12/2018 Change of Director's Interest Notice
19/12/2018 Change of Director's Interest Notice
5/12/2018 Terms of new CEO appointment
3/12/2018 Market Update - LeadershipChanges and StrategyUpdate
29/11/2018 Consolidation/Split - ABV
29/11/2018 Results of Meeting
29/11/2018 CEO Presentation
29/11/2018 Chairman's Address to Shareholders
27/11/2018 Market Update
2/11/2018 Market Update - October Results
31/10/2018 Appendix 4C -quarterly
26/10/2018 Notice of Annual General Meeting/ProxyForm
12/10/2018 Becominga substantial holder
11/10/2018 Change of Director's Interest Notice
03/10/2018 Change of Director's Interest Notice
28/09/2018 Appendix 3B - Convertible Note Conversion
28/09/2018 Appendix 4G – KeyCorporate Governance Disclosures

8 INFORMATION EXCLUDED FROM THE CONTINUOUS DISCLOSURE NOTICE

As at the date of this Cleansing Notice, the Company advises that it has fully complied with its disclosure obligations under the ASX Listing Rules and the Corporations Act, and, in particular, there is no information which the Company has excluded from any of its continuous disclosure notices given in accordance with the ASX Listing Rules and the Corporations Act as at the date of this Cleansing Notice which it would be reasonable for investors and their professional advisors to require for the purpose of making an informed assessment of:

  • (a) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; and

  • (b) the rights and liabilities attaching to the Convertible Notes and Shares.

Signed for and behalf of Advanced Braking Technology Limited by:

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Kaitlin Smith Company Secretary

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

ANNEXURE A

TERMS OF CONVERTIBLE NOTES

The following is a broad summary of the rights, privileges and restrictions attaching to the Convertible Notes. This summary is not exhaustive and does not constitute a definitive statement of the rights and liabilities of the Noteholders.

TERM DESCRIPTION
Issuer Advanced BrakingTechnologyLimited ABN 66 099 107 623(Company)
Issue/
Subscription Date
15 January 2019
Eligibility The Offer was made to sophisticated, experienced and professional investors for
the purposes of section 708 of the Corporations Act as at the date of acceptance of
the Offer.
Face Value The Convertible Notes each have a $0.02 face value to a raise a principal amount
of$0.234 million.
MaturityDate 30 June 2019.
Ranking The Convertible Notes rank for payment after all other creditors and obligations of
the Company, but prior to shareholders rights to return of capital paid up on their
Shares.
The Convertible Notes rank equally with all other existing convertible notes (if
any).
Interest The Company must pay interest on the Face Value at 15% per annum, paid in
arrears on 31 March, 30 June, 30 September and 31 December until the earlier of
the Maturity Date or the request of the Noteholder to the Company to convert the
Convertible Notes.
Conversion Rights Convertible Notes may be converted by the Noteholder at any time up until the
Maturity Date subject to the Noteholder providing the Company with a Conversion
Notice.
Conversion Price $0.02 per Share, subject to any adjustments to the conversion Price as outlined
below.
Adjustment to
Conversion Price
If there is a reconstruction (including consolidation, subdivision, reduction or
return) of the issued capital of the Company, the basis for conversion of the
Convertible Notes will be reconstructed in the same proportion as the issued
capital of the Company is reconstructed, and will be in a manner which will not
result in any additional benefits being conferred on the Noteholder which are not
conferred on the shareholders of the Company (subject to the same provisions
with respect to rounding of entitlements as sanctioned by the meeting of
shareholders approving the reconstruction of capital), nor any benefits being taken
away from the Noteholder, but in all other respects the terms for conversion of the
Convertible Notes will remain unchanged.
Participation in
new issue of
securities
If the Company undertakes any issue of new securities in respect of the Company
(other than an issue of Shares or options under an employee Share or option
scheme approved by shareholders (New Securities) to any person, the Company
must offer each Noteholder the right to purchase Shares on the same terms as the
New Securities so that the entitlement of the Shares issued upon conversion of the
Note will be the same as the entitlement of the Shares into which the Note would
have been converted had there been no issue of New Securities.

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

Such an offer can only be accepted by Noteholders if they qualify as a
sophisticated investor, experienced investor or professional investor for the
purposes of section 708, 708(10) or 708(11) (respectively) of the Corporations Act
at the time of such offer.
Conversion Shares Conversion Shares issued upon conversion of a Convertible Note will be fully paid
ordinary Shares and rank equally with all other fully paid Shares from their date of
issue.
The Company will apply for official quotation by ASX of the Conversion Shares on
the conversion date.
Redemption The Convertible Notes will be redeemed by the Company in the following
circumstances
a) at any time before the Maturity Date, by the Company giving 30 days’
written notice to the Noteholder informing them of the Company’s
intention to redeem The Noteholder may, within 30 days of receiving the
Redemption Notice from the Company give notice to convert failing which
they will forfeit their right for conversion of Convertible Notes under hereof
and their Notes will be redeemed on the day immediately after the end of
the Redemption Notice Period.
b) automatically on the Maturity Date to the extent the Convertible Notes
have not been converted into Shares or the Noteholder has not delivered a
Conversion Notice on or before the Maturity Date
Payment of Redemption is due within 10 Business Days.
Events of Default The key Events of Default include:
(a) material breach of the Company’s obligations under the Subscription
Agreement or failure to meet obligations; or
(b) an insolvency event occurs in relation to the Company, including, but not
limited to its Liquidation or an External Administrator being appointed in
respect of the Companyor anyof itsproperty.
Transferability To the extent permitted by the Corporations Act and any applicable laws, the
Noteholders may transfer some or all of their Convertible Notes off market to a
sophisticated or professional investor, but not a retail client (all as defined in the
Corporations Act)upon lodgement of a transfer from with the Company.
Rights of
Noteholder
Except as otherwise provided in the Subscription Agreement, the Convertible
Notes will not entitle the Noteholder to vote at general meetings of the Company,
to receive dividends or other distributions or participate in any issue of securities
other than in accordance with the terms of the Subscription Agreement.
The Noteholder has the same rights as a shareholder to receive notices of general
meetings, reports and financial statements of the Company and, in certain
circumstances,to inspect the books of the Company.
Extension Noteholders will have the option to extend the Convertible Note Maturity Date for
one additional six month period by giving the Company written notice no less than
14 days before the MaturityDate.
ASX Listing The Convertible Notes will not be quoted on the ASX or any other securities
exchange.

Advanced Braking Technology Ltd (ACN 099 107 623, ABN 66 099 107 623) Email: [email protected]

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Advanced Braking Technology Limited

ABN

66 099 107 623

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to Unlisted Convertible Notes be issued 2 Number of[+] securities issued or 11,700,000 unlisted convertible notes to be issued (if known) or maximum number which may be issued

3
Principal
terms
of
the
+securities
(e.g.
if
options,
exercise price and expiry date; if
partly
paid
+securities,
the
amount outstanding and due
dates
for
payment;
if
+convertible
securities,
the
conversion price and dates for
conversion)
Each Convertible Note;

Has a face value of $0.02

Bears interest at the rate of 15% per
annum calculated daily and payable
in arrears quarterly

Is unsecured and unlisted

Is convertible into fully paid ordinary
shares (Shares) at any time prior to
Maturity Date (being 30 June 2019)
and will be automatically redeemed
for cash on the Maturity Date unless
converted earlier. The conversion
price is $0.02 per Share, subject to
any adjustments to C0nversion Price
disclosed in Annexure A of the
Cleansing Notice lodged 15 January
2019.

Each noteholder will have the right
to apply to extend the term by a
further 6 months by providing notice
no less than 14 days before the
maturity date.
  • 4 Do the[+] securities rank equally No, the Shares do not rank equally with the in all respects from the[+] issue fully paid shares on issue. date with an existing[+] class of quoted[+] securities? Upon conversion of the convertible notes into fully paid shares, the Shares will rank

  • If the additional[+] securities do pari passu with existing Shares. not rank equally, please state:  the date from which they do The Convertible Notes do not carry a right  the extent to which they to participate in the next dividend.

  • participate for the next dividend, (in the case of a trust, distribution) or interest payment

  • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

  • 5 Issue price or consideration $0.02 per Convertible Note

  • See chapter 19 for defined terms.

Appendix 3B Page 2

04/03/2013

6
Purpose of the issue
(If issued as consideration for
the acquisition of assets, clearly
identify those assets)
6a
Is the entity an+eligible entity
that
has
obtained
security
holder approval under rule 7.1A?
If Yes, complete sections 6b – 6h
in relation to the+securities the
subject of this Appendix 3B, and
comply with section 6i
6b
The date the security holder
resolution under rule 7.1A was
passed
6c
Number of+securities issued
without security holder approval
under rule 7.1
6d
Number of+securities issued
with security holder approval
under rule 7.1A
6e
Number of+securities issued
with security holder approval
under rule 7.3, or another
specific security holder approval
(specify date of meeting)
6f
Number of+securities issued
under an exception in rule 7.2
6g
If+securities issued under rule
7.1A, was issue price at least 75%
of 15 day VWAP as calculated
under rule 7.1A.3? Include the
+issue date and both values.
Include the source of the VWAP
calculation.
To refinance $0.265 million of Convertible
Notes which are electing redemption.
Yes
29 November 2018
N/A
N/A
N/A
N/A

N/A

6h If[+] securities were issued under N/A rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining LR 7.1) 32,857,469 issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 LR 7.1A) 29,704,980 and release to ASX Market Announcements 7 +Issue dates 15 January 2019 Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.

Number +Class 8 Number and +class of all 297,049,796 Ordinary Shares +securities quoted on ASX ( including the +securities in section 2 if applicable)

  • See chapter 19 for defined terms.

Appendix 3B Page 4

04/03/2013

9
Number
and
+class
of
all
+securities not quoted on ASX
(_including_the
+securities in
section 2 if applicable)
10
Dividend policy (in the case of a
trust, distribution policy) on the
increased capital (interests)
Number +Class
11,221,250
11,700,000
Unlisted convertible
notes with a value of
$0.08 per note,
convertible to shares
at $0.02 per share,
convertible any time
prior to the maturity
date of 30 June 2019
Unlisted convertible
notes with a value of
$0.02 per note,
convertible to shares
at $0.02 per share,
convertible any time
prior to the maturity
date of 30 June 2019
Dividend policy remains unchanged

Part 2 - Pro rata issue N/A

11 Is
security
holder holder
approval
required?
12 Is the issue renounceable or non-
renounceable?
13 Ratio in which the +securities
will be offered
14 +Class of+securities to which the
offer relates
15 +Record
date
to determine
entitlements
16 Will
holdings
on
different
registers (or subregisters) be
aggregated for calculating
entitlements?
17 Policy for deciding entitlements
in relation to fractions
18 Names of countries in which the
entity has security holders who
will not be sent new offer
documents
Note: Security holders must be told how their
entitlements are to be dealt with.
Cross reference: rule 7.7.
19 Closing
date
for
receipt
of
acceptances or renunciations
20 Names of any underwriters
21 Amount of any underwriting fee
or commission
22 Names of any brokers to the
issue
23 Fee or commission payable to
the broker to the issue
24 Amount of any handling fee
payable to brokers who lodge
acceptances or renunciations on
behalf of security holders
25 If the issue is contingent on
security holders’ approval, the
date of the meeting
26 Date entitlement and acceptance
form and offer documents will be
sent to persons entitled
27 If the entity has issued options,
and the terms entitle option
holders
to
participate
on
exercise, the date on which
notices will be sent to option
holders
28 Date rights trading will begin (if
applicable)
29 Date rights trading will end (if
  • See chapter 19 for defined terms.

Appendix 3B Page 6

04/03/2013

applicable)

30 How do security holders sell How do security holders sell
their entitlements_in full_ through
a broker?
31 How do security holders sell_part_
of their entitlements through a
broker
and
accept
for
the
balance?
32 How do security holders dispose
of their entitlements (except by
sale through a broker)?
33 +Issue date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of[+] securities ( tick one ) (a) +Securities described in Part 1

(b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

1 - 1,000

1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

  • See chapter 19 for defined terms.

Appendix 3B Page 8

04/03/2013

Entities that have ticked box 34(b)

38 Number of[+] securities for which +quotation is sought 39 +Class of +securities for which quotation is sought 40 Do the[+] securities rank equally in all respects from the[+] issue date with an existing[+] class of quoted +securities? If the additional[+] securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another[+] security, clearly identify that other[+] security)

Number +Class 42 Number and +class of all +securities quoted on ASX ( including the[+] securities in clause 38)

Quotation agreement

  • 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

  • 2 We warrant the following to ASX.

  • The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

  • There is no reason why those[+] securities should not be granted +quotation.

  • An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

    • Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty
  • Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

  • If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

  • 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

  • 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

==> picture [79 x 31] intentionally omitted <==

Sign here: .............................. Date: ..15/01/2019.......... (Company Secretary)

Print name: ...Kaitlin Smith.....................................

  • See chapter 19 for defined terms.

== == == == ==

Appendix 3B Page 10

04/03/2013

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Part 1 Part 1
Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement
capacity is calculated
Insertnumber of fully paid+ordinary
securities on issue 12 months before the
+issue date or date of agreement to issue
2,203,308,684
Addthe following:
• Number of fully paid+ordinary securities
issued in that 12 month period under an
exception in rule 7.2
-
10 August 2018 (Pro Rata Issue
Institutional Entitlement)
-
12 September 2018 (Pro Rata
Issue Retail Entitlement)
-
14 September 2018 (Pro Rata
issue Shortfall Placement)
-
2 October 2018 (Convertible Note
Conversion)
-
1:10 Consolidation
• Number of fully paid+ordinary securities
issued in that 12 month period with
shareholder approval
• Number of partly paid+ordinary
securities that became fully paid in that
12 month period
Note:
• Include only ordinary securities here –
other classes of equity securities cannot
be added
• Include here (if applicable) the securities
the subject of the Appendix 3B to which
this form is annexed
• It may be useful to set out issues of
securities on different dates as separate
line items
219,720,665
420,427,270
101,226,319
5,000,000
(2,673,445,394)
Subtractthe number of fully paid+ordinary
securities cancelled during that 12 month
period
-
“A” 297,049,796
Step 2: Calculate 15% of “A”
“B” 0.15
[Note: this value cannot be changed]
Multiply“A” by 0.15 44,557,469
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1
that has already been used
Insertnumber of+equity securities issued
or agreed to be issued in that 12 month
period_not counting_those issued:
• Under an exception in rule 7.2
• Under rule 7.1A
• With security holder approval under rule
7.1 or rule 7.4
Note:
• This applies to equity securities, unless
specifically excluded – not just ordinary
securities
• Include here (if applicable) the securities
the subject of the Appendix 3B to which
this form is annexed
• It may be useful to set out issues of
securities on different dates as separate
line items
11,700,000
“C” 11,700,000
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining
placement capacity under rule 7.1
“A” x 0.15
Note: number must be same as shown in
Step 2
44,557,469
Subtract“C”
Note: number must be same as shown in
Step 3
11,700,000
Total[“A” x 0.15] – “C” 32,857,469
[Note: this is the remaining placement
capacity under rule 7.1]
  • See chapter 19 for defined terms.

Appendix 3B Page 12

04/03/2013

Part 2

Part 2 Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement
capacity is calculated
“A”
Note: number must be same as shown in
Step 1 of Part 1
297,049,796
Step 2: Calculate 10% of “A”
“D” 0.10
Note: this value cannot be changed
Multiply“A” by 0.10 29,704,980
Step 3: Calculate “E”, the amount of placement capacity under rule
7.1A that has already been used
Insertnumber of+equity securities issued
or agreed to be issued in that 12 month
period under rule 7.1A
Notes:
• This applies to equity securities – not
just ordinary securities
• Include here – if applicable – the
securities the subject of the Appendix
3B to which this form is annexed
• Do not include equity securities issued
under rule 7.1 (they must be dealt with
in Part 1), or for which specific security
holder approval has been obtained
• It may be useful to set out issues of
securities on different dates as separate
line items
Nil
“E” -
  • See chapter 19 for defined terms.

Appendix 3B Page 13

04/03/2013

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining
placement capacity under rule 7.1A
Step 4: Subtract “E” from [“A” x “D”] to calculate remaining
placement capacity under rule 7.1A
“A” x 0.10
Note: number must be same as shown in
Step 2
29,704,980
Subtract“E”
Note: number must be same as shown in
Step 3
Nil
Total[“A” x 0.10] – “E” 29,704,980
Note: this is the remaining placement
capacity under rule 7.1A
  • See chapter 19 for defined terms.

Appendix 3B Page 14

04/03/2013