BPH GLOBAL LTD — Capital/Financing Update 2021

Apr 14, 2021

==> picture [99 x 61] intentionally omitted <==

STEMCELL UNITED LIMITED

ACN 009 104 330

Level 12, 680 George Street, Sydney, NSW 2000, Australia

15 April 2021

Company Announcements Platform Australian Securities Exchange

Stemcell United Ltd secures firm commitments to raise $3.8m

• Stemcell United Ltd to raise $3.8m through the issue of ~200,000,000 new fully paid ordinary shares at $0.019 per share

• Placement was strongly supported by sophisticated and professional investors

• Funds to be used to progress near term growth catalysts in the cannabis and hemp, and sea grape cultivation and plant based protein sectors

Stemcell United Limited (ASX:SCU) (“Company”) is pleased to advise that it has secured firm commitments from institutional, sophisticated and professional investors to raise $3.8m (before costs) through the issue of approximately 200,000,000 new fully paid ordinary shares at an issue price of $0.019 per share (“placement”). The placement also includes one attaching option for every two shares subscribed, for a total of 100,000,000 options to the subscribers. The option will expire on the third anniversary of issue and is exercisable at $0.04 per option. The issue will be completed in a single tranche under the Company’s placement capacity as approved at the shareholders meeting of 26 March 2021 and capacity under ASX Listing Rule 7.1. The shares rank equally with existing shares on issue. The Company expects that new shares will be issued on Friday, 23 April 2021.

Funds raised from the placement will be used to progress a number of near term growth catalysts, with focus on securing additional sale and partnership agreements in the cannabis and hemp sector, as well as development opportunities in sea grape research and cultivation. Stemcell United will also explore the potential to undertake carbon credit trading from its existing sea grape carbon capture operations.

Management commentary:

Managing director and CEO Mr Philip Gu said: “We are very pleased to have generated such strong interest from the placement and would like to take this opportunity to welcome a number of new investors to the register.

“Stemcell United is well established in key Asia Pacific markets, including China and Australia and this new funding provides us with considerable financial flexibility to broaden our footprint and pursue revenue generating agreements which will unlock value for shareholders.

“Our immediate focus will be to progress partnerships in the cannabis and hemp space, as well as expand our vertically integrated marine cultivation for our plant based protein products to tackle food security issues and mitigate climate change risk. A number of developments are in progress and we look forward to updating shareholders on progress in the coming months.”

Sanlam Private Wealth (“Sanlam”) acted as the lead manager to the placement. Sanlam will receive fee of 6% of the placement amount, a corporate administration and DVP management fee of $20,000, and 10,000,000 options expiring on the third anniversary of issue and is exercisable at $0.04 per option.

This announcement has been authorised for release by the Board of Stemcell United Limited.

- END -