DE.MEM LIMITED — Capital/Financing Update 2019

Oct 3, 2019

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3 October 2019

Company Announcements Office, ASX Limited By E-Lodgement

Completion of Placement

On 2 October 2019, De.mem Limited (“De.mem” or “Company”) issued 14,755,000 fully paid ordinary shares in capital of the Company at a deemed issue price of $0.20 per share. These shares were issued to a group of high-quality institutional and other investors, which was announced to the ASX on 27 September 2019.

The shares were issued using the Company’s placement capacity under Listing Rule 7.1 and 7.1A. 2,377,067 fully paid ordinary shares were issued under Listing Rule 7.1 and 12,377,933 fully paid ordinary shares were issued under Listing Rule 7.1A.

The Company provides the following information as required under ASX Listing Rule 3.10.5A in respect of the shares issued under the Company’s 10% placement capacity under Listing Rule 7.1A:

• a) The dilution to existing shareholders as a result of the shares issuedd pursuant to the placement under Listing Rule 7.1A (12,377,933) was 8.84%.

• b) The issues of shares was not as a pro rata issue or other type of issue in which ordinary security holders would have been eligible to participate, as it was considered a more efficient method of raising the capital as required.

• c) There were no underwriting arrangements.

• d) The Company has incurred a 6.25% capital raising fees (plus GST) in connection to the share issue.

The Company’s cleansing notice under section 708A of the Corporations Act 2001, is on the following page.

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Cleansing Notice

This notice is given by the Company under section 708A(5)(e) of the Corporations Act 2001 (Cth) ("Corporations Act”), as modified by Australian Securities and Investments Commission.

For the purposes of section 708A(5)(e) of the Corporations Act, the Company advises as follows:

• e) the Company issued the Shares without disclosure under Part 6D.2 of the Corporations Act 2001 (Cth) (Corporations Act);

• f) as at the date of this notice the Company has complied with:

  • i) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

  • ii) section 674 of the Corporations Act as it applies to the Company; and

• g) as at the date of this announcement, there is no excluded information of the type referred to in sections 708A(7) and 708A(8) of the Corporations Act.

If you have any questions please call Deborah Ho on 08 9482 0500.

Yours sincerely, Deborah Ho Joint Company Secretary

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