DE.MEM LIMITED — Capital/Financing Update 2019

Jun 26, 2019

ASX RELEASE | De.mem Limited (ASX:DEM)

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De.mem completes placement with leading institutional investors

Highlights:

• Received $1.907 million of fresh capital from leading institutional investors and existing shareholders

• Sydney-based Perennial Value Management becomes second-largest shareholder

27 June 2019: Water and wastewater treatment company De.mem (ASX:DEM) (“De.mem” or “the Company”) is pleased to report that it has received $1.907 million of new investment by a group of high-quality institutional investors as well as existing shareholders through a placement of new shares.

The Company expects to issue 13,621,427 fully paid ordinary shares at $0.14 per share to these investors by 28 June 2019. The issue will utilise the Company’s existing placement capacity available under 7.1 of the ASX Listing Rules.

The cornerstone investor in this placement is Perennial Value Management (“Perennial Value”), which invested $1.5 million in De.mem and consequently now holds 7.7% of the Company, making it the second-largest shareholder of the Company after Singapore-based Venture Capital fund New Asia Investments.

The Perennial Value Microcap Opportunities Trust received Money Management ’s 2019 Fund Manager of the Year Award in the Australian Small Cap category. The portfolio invests in a range of small listed and unlisted companies with a market capitalisation below $500 million, which Perennial Value believes have sustainable operations and whose share prices offer good value.

De.mem CEO Andreas Kroell said: “The investment received from such a high-quality group of investors underlines the attractive investment proposition of De.mem. Each investor is known to be a long-term supporter of high-quality growth businesses, and we welcome them onto our register.”

The additional capital will provide De.mem with critical working capital to propel the Company’s growth. It will be of importance to fund a range of strategic growth opportunities, including in the Company’s Build-OwnOperate (BOO) segment, where De.mem generates a stable recurring revenue stream with equipment rentals.

Bernd Dautel, Director of De.mem’s largest shareholder New Asia Investments, said: “We are pleased to welcome such reputable investors to the Company’s register whose long-term investment horizon aligns perfectly with ours. De.mem, with its attractive market focus, backed by a wide product offering and world-class proprietary technology with a large addressable market, appears as a highly promising investment opportunity to our fund. We look forward to continuing to support the Company’s growth.”

-ENDS-

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For further information, please contact:

	De.mem Limited		Investor Enquires
	Andreas Kroell		George Gabriel, CFA
	CEO		Managing Director
	De.mem Limited		Bletchley Park Capital
	investor@demem.com.sg		+61 3 8686 9144
			investors@bletchleyparkcapital.com.au

De.mem Limited (ASX:DEM) is an Australian-Singaporean decentralised water and wastewater treatment business that designs, builds, owns and operates turnkey water and wastewater treatment systems for some of the world’s largest companies in the mining, electronics, chemical, oil & gas, and food & beverage industries. Its systems also provide municipalities, residential developments and hotels/resorts across the Asia Pacific with a reliable supply of clean drinking water. De.mem’s technology to treat water and wastewater is among the most advanced globally. The Company has commercialised an array of innovative proprietary technologies from its research and development partner, Nanyang Technological University (NTU) in Singapore, a world leader in membrane and water research. Technologies exclusively licensed from NTU include a revolutionary low-pressure hollow fibre nanofiltration membrane that uses less electricity and is cheaper to operate than conventional systems, as well as a new Forward Osmosis membrane deployed in de-watering applications or the concentration of liquids.

To learn more, please visit: www.demembranes.com

New Asia Investments Pte Ltd is a Venture Capital fund established in Singapore in 2012 with the goal to explore the growth markets of Asia. Focus is on the water, technology and industrial sectors. As a venture capital investment company, New Asia Investments invests in young, up-and-coming technology companies which are approaching market launch or have innovative products already on the market. In Singapore, the Company invests as a partner of the Singapore government via a separate side fund called NA Singapore Early-Stage Venture Fund I Pte Ltd. New Asia Investments is led by an experienced management team while its shareholders include a number of strategic investors based in Asia, which support the company's expansion actively through their network and experience.

Perennial Value is an Australian-owned, specialist, active investment management firm. A joint venture between senior investment professionals and financial services firm IOOF Holdings, Perennial Value manages approximately $5 billion on behalf of institutional and retail clients. All of its portfolios, which range from large caps to microcaps, are positioned for long-term investment performance outcomes relative to a recognised market benchmark, in a riskefficient manner. Research is the cornerstone of Perennial Value’s investment process. The firm conducts independent first-hand research on all securities before including them in any investment portfolios. The Perennial Value Microcap Opportunities Trust won the prestigious title “Fund Manager of the Year 2019” (Australian small cap equities) awarded by Money Management magazine and its research partner, Lonsec.

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices or potential growth of De.mem Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forwardlooking statements depending on a variety of factors.

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