DATAWORKS GROUP LIMITED — Capital/Financing Update 2020

Jul 26, 2020

==> picture [76 x 34] intentionally omitted <==

27 July 2020

Rights Issue Completion and Top-Up Right Update

The Board of IXUP Limited ( ASX:IXU ) ( IXUP or Company ), the leading technology company that secures data analytics and collaboration by using next-generation homomorphic encryption, is pleased to provide an update on the Company’s announcement dated 21 July on the results of its fully underwritten 1-for-1 non-renounceable, pro rata rights issue at an issue price of $0.01 per fully paid ordinary share in the Company ( Share ) to shareholders on the register as at 7.00 pm (AEST) on 29 June 2020 ( Entitlement Offer ).

The Company confirms that the scale-back process in relation to applications for Additional Shares under the Shortfall Facility ( Shortfall Shares ) is expected to be completed imminently. As a result, the agreement with Cygnet Capital Pty Limited ( Cygnet ) to underwrite the Entitlement Offer is not expected to be called upon.

Shortfall Shares will be issued on or about Thursday, 30 July 2020. Following the issue of Shortfall Shares, the total issued share capital of the Company will be 445,680,316 Shares.

As previously announced, if the shortfall under the Entitlement Offer is less than 50,000,000 Shares, Cygnet has a top-up right to ensure that the total number of Shares to be allocated by it, including any shortfall, is not less than 50,000,000 Shares, subject to shareholder approval ( Top-Up Right ).

Given the strong interest in the Entitlement Offer and the ongoing economic uncertainty created by the COVID-19 pandemic, the Company believes it is prudent, and has therefore agreed with Cygnet, that the total number of Shares to be allocated by Cygnet pursuant to the Top-Up Right will be increased to 150,000,000 Shares at $0.01 per Share to raise up to $1.5 million (before costs), subject to shareholder approval ( Placement ).

The fee payable to Cygnet (or its nominee) in relation to the Placement will be 6% of the increased amount being raised by the Placement (up to $60,000 (plus GST)) and the issue of 8,000,000 unlisted options (exercisable at $0.02 on or before the date that is four years from the date of issue) subject to shareholder approval. The Placement will be completed on a best endeavours basis.

The Company anticipates holding an extraordinary general meeting of shareholders ( EGM ) at the earliest opportunity to seek shareholder approval for the issue of securities contemplated under the Placement.

Details of the EGM will be advised in a Notice of Meeting in the near future.

This announcement has been authorised by the IXUP Board.

-ENDS-

Enquiries: Peter Leihn, IXUP Andrew Whitten, Company Secretary Tel: +61 413 863 503 Tel: +61 2 8072 1400 peter.leihn@ixup.com.au

==> picture [76 x 34] intentionally omitted <==

About IXUP

IXUP Limited (pronounced ‘eyes up’) is a listed technology company (ASX: IXU) that secures data analytics and delivers insights within a governance framework. The platform encrypts and connects data from multiple sources, solving the problems of data loss and misuse by enabling data owners to remain in complete control of their data. IXUP was listed in 2017. For more information visit www.ixup.com. IXUP’s registered address is Level 3, 5-7 Ross Street, Parramatta NSW 2150.