ATOMOS LIMITED — Capital/Financing Update 2019

Jun 30, 2019

ASX Announcement ATOMOS LIMITED (ASX:AMS) 1 July 2019

==> picture [85 x 84] intentionally omitted <==

Atomos raises $7.5m via placement

Highlights

• Raising of $7.5m via an Institutional Placement ( ‘Placement’ ) at $1.00 per share

• Placement was strongly supported by new and existing institutional investors

• Placement proceeds will be used to strengthen the Company’s balance sheet as it continues to pursue opportunities for market development and to accelerate growth

• Concurrent with the Placement, 27 million shares from the total of 95 million shares that had been released from 6-month voluntary escrow were offered for sale and placed with institutional investors at the Placement. The remaining 68 million, amounting to 71% of escrow shares released, were retained by existing holders.

Atomos Limited (ASX:AMS, ‘ Atomos ’ or the ‘ Company ’), is pleased to advise that it has completed a Placement of 7.5 million fully paid ordinary shares at $1.00 per share raising a total of $7.5m.

Placement

Atomos has received firm commitments to subscribe for 7.5 million shares at an issue price of $1.00 per share, representing a 2.9% discount to the last traded price of the Company’s shares on 26 June 2019.

New shares issued under the Placement will rank equally with Atomos’ existing fully paid ordinary shares. No shareholder approval is required for the Placement, as the Company will use a portion of its placement capacity under ASX Listing Rule 7.1.

Settlement of the Placement is scheduled to occur on 4 July 2019 with the Placement shares scheduled to be issued on 5 July 2019.

Escrow Sell-Down

Concurrent with the Placement, 27 million shares from the total of 95 million shares that had been released from voluntary escrow on 28 June 2019 were offered and sold to a number of existing and new institutional investors at the Placement price of $1.00 per share. The remaining 68 million, amounting to 71% of escrow shares released, were retained by existing holders.

One of the sellers was Imagination Technologies Ltd, which initially invested in Atomos in 2014 and at the time of the IPO held 10,530,000 shares or 6.9% (on an undiluted basis). Post escrow sell-down, Imagination Technologies will not own any shares in Atomos.

CEO Commentary

Atomos CEO Jeromy Young said: “We are delighted with the strong institutional support

MELBOURNE[• ] TOKYO[• ] BEIJING[• ] LONDON[• ] FRANKFURT[• ] PARIS[• ] BROOKLYN[• ] PORTLAND[• ] LOS ANGELES

shown by both new and existing investors; the enhanced and highly supportive investment base equips the company well as it embarks on its next stage of growth and value creation. The Placement will appropriately provide the Company with a strengthened balance sheet to support its strategy to expand further into the entertainment and social market segments. The new markets are estimated to be 10 times the size of the pro video market that Atomos has historically focused on [*] .

On behalf of the Company I would like to thank Imagination Technologies for their collaboration and support during the past five years. Whist our investment & shareholding relationship is now appropriately completed, the business relationship continues with Atomos licensing and deploying Imagination’s leading graphics technology “Power VR” in our AtomIC custom silicon series.”

Henslow Pty Ltd and Morgans Corporate Ltd acted as joint lead managers to the Placement and the Escrow Sell Down with Maddocks acting as legal advisor.

*Atomos’ growing product portfolio is expected to address a US$10 billion global camera and video equipment market (CIPA Report 2017)

-- ENDS --

For further information please contact:

James Cody	Matthew Wright
Chief Financial Officer	Media relations
+61 3 9999 5908	+61 451 896 420
james.cody@atomos.com	matt@nwrcommunications.com.au

About Atomos

Atomos is a global video technology company delivering award-winning, simple to use monitor-recorder content creation products. These products give content creators across the rapidly growing social, pro-video and entertainment markets a faster, higher quality and more affordable production system.

Atomos’ range of products take images directly from the sensor of all major camera manufacturers, then enhance, record and distribute them in high-quality formats for content creation using the major video editing software programs. Since being founded in 2010, Atomos has established strategic relationships with key technology providers within the ecosystem including Apple, Adobe, Sony, Canon, Panasonic, Nikon and JVC Kenwood.

Atomos is based in Australia with offices in the USA, Japan, China, UK and Germany and has a worldwide distribution partner network.

For more information please visit www.atomos.com

MELBOURNE[• ] TOKYO[• ] BEIJING[• ] LONDON[• ] FRANKFURT[• ] PARIS[• ] BROOKLYN[• ] PORTLAND[• ] LOS ANGELES