CONNEXION MOBILITY LTD — Capital/Financing Update 2016

Apr 12, 2016

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ASX Announcement

Placement and Corporate Update

• Connexion is in the final stages of completing a capital raise of up to $2.5 million via a Placement to new and existing institutional and professional investors, at 18 cents per share

• The funds raised will be used to accelerate the Company’s current growth initiatives, along with: o An expected R&D refund of over $1.5 million o General Motors (GM) development payment

  • Current positive subscription momentum from GM Commercial Link and Australian Flex customers

• Substantial revenue growth opportunities in months ahead, with a number of opportunities progressing well

13 April 2016, Melbourne: Connexion Media Limited (ASX:CXZ) (“Connexion”) is pleased to announce a Placement and provide an update for shareholders.

Placement

The Company is in the final stages of completing a capital raise of up to $2.5 million via a Placement at 18 cents per share.

The Placement is being offered to institutional investors, along with sophisticated and high net worth investors. The Company has had healthy demand from existing and new investors, and expects to close the capital raise in the very near term.

The funds raised will be used to support the Company’s current growth initiatives, including servicing the anticipated uplift in GM’s Commercial Link customer demand.

Corporate Update

Since the launch of GM’s Commercial Link across the US on 1 April 2016, the Company anticipates substantial revenue uplift in the months ahead.

The Company’s cash position will also be bolstered by a significant payment from GM for Commercial Link development work already undertaken and an R&D refund later in CY2016 of over $1.5 million.

The Company continues to deliver strong growth momentum, with further positive revenue opportunities ahead, including WEX Australia’s planned launch of its Flex-based product and miRoamer licensing fees from a South American automaker.

Further to the announcement made on 30 April 2015, the Company has delivered the miRoamer customised in-vehicle solution to a South American automaker for review. The product launch is planned for late 2016 and is expected to reach up to 8 million vehicles within 3 years. Connexion will receive a one-off license fee per vehicle.

The Company has also been invited to participate in several miRoamer automotive licensing tender opportunities in the USA and Europe.

In addition, Connexion’s recently announced partnership with Oracle (announced on 7 March 2016) is delivering early momentum, with Oracle introducing the Company to a number of its key accounts across the US. The Company expects further commercial opportunities to emanate from these introductions.

Level 3, 600 St Kilda Road, Melbourne VIC 3004, Australia www.connexionltd.com

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Commenting on the update George Parthimos, CEO of Connexion Media, said:

“ We have a number of exciting opportunities on the horizon that are progressing well and the Company expects to continue to deliver this strong growth momentum. ”

Ends

Media queries: Andrew Ramadge Media & Capital Partners T: +61 475 797 471 E: andrew.ramadge@mcpartners.com.au

About Connexion Media

Connexion Media specialises in developing and commercialising smart car software apps and services for internet-connected vehicles and mobile devices. The Company is headquartered in Melbourne, Australia and currently has offices in Cambridge, Detroit, Kochi and Seattle.

Connexion has two core products in commercialisation, Flex and miRoamer. Flex is a highly sophisticated smart car solution that allows car fleet managers to manage an entire fleet of vehicles from a mobile phone or computer and deliver cost efficiencies through reduced maintenance costs. Flex is able to track a range of real time and historical data including vehicle locations, distance travelled, fuel consumption, battery life, engine performance and absolute and average speeds travelled. It is also able to monitor driver behaviour and instantly send notifications and alarms to vehicle owners and fleet managers.

miRoamer is a next generation internet radio product that allows users to pick up radio stations from broad geographies, including international stations. miRoamer has become the world leader in internet radio technology, delivering a superior understanding of the technical, content and marketing demands of radio manufacturers and car makers alike.

Level 3, 600 St Kilda Road, Melbourne VIC 3004, Australia www.connexionltd.com