AUCYBER LIMITED — Capital/Financing Update 2021

Dec 14, 2021

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

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Successful completion of Retail Entitlement Offer raising A$18.6 million

15 December 2021

SOVEREIGN CLOUD HOLDINGS LIMITED (ASX: SOV)

Sovereign Cloud Holdings Limited (“ AUCloud ” or “ Company ”) is pleased to announce the successful completion of the retail component of its fully underwritten 4 for 11 accelerated pro-rata nonrenounceable entitlement offer (“ Entitlement Offer ”) (“ Retail Entitlement Offer ”) of new fully paid ordinary shares in AUCloud (“ New Shares ”) as announced on Monday, 22 November 2021.

The Retail Entitlement Offer closed at 5:00pm (Sydney time) on Monday, 13 December 2021 and raised a total of approximately $18.6 million at A$0.50 per New Share (“ Offer Price ”). Together with the institutional component, the Entitlement Offer raised a total of A$22.6 million.

The Retail Entitlement Offer was well supported by existing retail shareholders, with applications received totalling approximately A$17.2 million, reflecting a take-up rate of 92%. In addition, eligible retail shareholders were allocated approximately A$0.86 million of New Shares under the top-up facility. Approximately A$0.59 million of New Shares not taken up under the Retail Entitlement Offer have been allocated to the underwriters and sub-underwriters.

Approximately 37.2 million New Shares under the Retail Entitlement Offer are expected to be allotted on Monday, 20 December 2021 and commence trading on ASX on Tuesday, 21 December 2021. Holding statements are expected to be despatched on Wednesday, 22 December 2021.

The combined proceeds of the placement to NEXTDC Limited[1] (“ NEXTDC ”) (“ Placement ”) and the Entitlement Offer (together, the “ Equity Raising ”) raised approximately A$35 million, excluding transaction costs.

Phil Dawson, Founder and Managing Director said, “The strong support from retail and institutional investors is an endorsement of the strategic rationale for the equity raising and partnership with NEXTDC, a leading provider of premium data centre facilities. We are looking forward to working with NEXTDC and Craig Scroggie once he is appointed to the AUCloud board and are excited about the potential with a bigger and broader platform footprint into Brisbane, Melbourne and Adelaide.”

1 The Placement was completed via NEXTDC’s wholly-owned subsidiary, NEXTDC Ventures Holdings No.1 Pty Ltd. The investment will result in it having a 19.99% shareholding in AUCloud on completion of the Equity Raising.

AUSTRALIAN ● ASSURED ● ACCOUNTABLE ● AMPLIFIED ● AGILE ● ALIGNED Sovereign Cloud Holdings Ltd Unit 7, 15-21 Beaconsfield Street, PO Box 1048 ACN: 622 728 189 Fyshwick, Canberra ACT 2609 Fyshwick, ACT 2604 W: australiacloud.com.au

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Further information

Further information on the Equity Raising is set out in the Company's investor presentation lodged with ASX on Monday, 22 November 2021 and the Company's Retail Entitlement Offer information booklet lodged with ASX on Wednesday, 24 November 2021.

Contact details

Corporate

Phil Dawson, Managing Director P: +61 477 181 665 E: pdawson@australiacloud.com.au

Investors

Michelle Crouch, Chief Financial Officer P: +61 07 3222 8444 E: mcrouch@australiacloud.com.au

This ASX announcement was authorised for release by AUCloud’s Board of Directors

About Sovereign Cloud Holdings Limited

Sovereign Cloud Holdings Limited (operating as AUCloud) provides highly secure, standards based, sovereign cloud Infrastructure as a Service (IaaS) to Australian Government and Critical National Industry communities. This includes Federal, State and Local Governments and CNI organisations such as telecommunications, electricity, energy, financial services and similar utility providers.

Managed, operated and monitored in Australia by security cleared Australian citizens, all services and data hosted by Sovereign Cloud Holdings remains in Australia. This includes all customer data, account data, metadata, support data and derived analytics data.

For further information, please visit: AUCloud – Australian Sovereign Cloud (www.australiacloud.com.au).

AUSTRALIAN ● ASSURED ● ACCOUNTABLE ● AMPLIFIED ● AGILE ● ALIGNED

Sovereign Cloud Holdings Ltd ACN: 622 728 189 W: australiacloud.com.au

Unit 7, 15-21 Beaconsfield Street, Fyshwick, Canberra ACT 2609

PO Box 1048 Fyshwick, ACT 2604

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IMPORTANT NOTICES

This announcement is not financial product or investment advice, a recommendation to acquire securities or accounting, legal or tax advice. It does not constitute an invitation or offer to apply for securities. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek legal and taxation advice appropriate for their jurisdiction. AUCloud is not licensed to provide financial product advice in respect of an investment in securities.

This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933, as amended (“ US Securities Act ”), and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.

AUSTRALIAN ● ASSURED ● ACCOUNTABLE ● AMPLIFIED ● AGILE ● ALIGNED

Sovereign Cloud Holdings Ltd Unit 7, 15-21 Beaconsfield Street, PO Box 1048 ACN: 622 728 189 Fyshwick, Canberra ACT 2609 Fyshwick, ACT 2604 W: australiacloud.com.au