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DATADOT TECHNOLOGY LIMITED Capital/Financing Update 2014

Nov 2, 2014

64764_rns_2014-11-02_4e681bc0-2990-4bfa-a173-1fd1f522c51a.pdf

Capital/Financing Update

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DataDot Technology Limited ABN 54 091 908 726

Securities Exchange Announcement

3 November 2014

Share Purchase Plan Successfully Closed Q1FY2015 Trading

The Directors of DataDot Technology Limited (ASX:DDT) are pleased to announce that the Share Purchase Plan (SPP) successfully closed on 24[th] October.

At the issue price of 2.7 cents per share, 309 shareholders subscribed a total of $836,000 under the $1 million SPP. 30,963,201 ordinary shares were issued to these shareholders on 31[st] October.

The aggregate capital raised under both the SPP and the share placement of 70,000,000 ordinary shares to sophisticated and professional investors on October 13 is $2.726 million.

As stated when the SPP was launched, the funds raised are to be used to finance:

  • 1 additional sales capability for industrial DataDotDNA and DataTraceDNA products in the US;

  • 2 additional sales capability for DataDotDNA products in Australia, targeting the industrial and marine sectors; and

  • 3 further development of DataDot Live for deployment in the insurance sector.

Pleasingly, the Company has traded profitably during the Q1FY2015 with positive earnings (EBITDA) being recorded for the period. The investment in activities above will negatively impact earnings in Q2FY2015 and going forward until offsetting new revenue is brought online as expected during the balance of FY2015.

The Company has also just lodged its 2014 tax return and expects an R&D rebate payment of more than $400,000 by calendar year end. Royalties from our South African distributor were prepaid in FY2014 but this prepayment expired in October 2014 with these royalties being paid in cash going forward having a material positive impact on monthly cash flow.

Contact Information:

DataDot Technology Limited Bruce Rathie, Executive Chairman Phone: 02 - 89774900 e-mail: [email protected] web site: www.datadotdna.com

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