ECS BOTANICS HOLDINGS LTD — Proxy Solicitation & Information Statement 2017

Apr 11, 2017

AXXIS%TECHNOLOGY%GROUP%LIMITED% NOTICE%OF%GENERAL%MEETING%%

Notice'is'hereby'given'that'a'General'Meeting'of'the'shareholders'of'Axxis'Technology'Group'Limited'ACN'009'805' 298'will'be'held'on'Tuesday,'16'May'2017'at'12:00'PM'AEST'at'the'Seasons'Botanic'Gardens'Melbourne,'348'St'Kilda' Road,'Melbourne,'VIC,'3004.''

The'attached'Explanatory'Statement'is'provided'to'supply'Shareholders'with'information'to'enable'Shareholders'to' make'an'informed'decision'regarding'the'Resolutions'set'out'in'this'Notice.''The'Explanatory'Statement'is'to'be'read' in'conjunction'with'this'Notice.'

Capitalised'terms'are'defined'in'the'Glossary.''

1.%Agenda%for%the%Meeting%

Resolution%1%–%Election%of%Jeremy%King%as%a%Director%%

To'consider,'and'if'thought'fit,'to'pass,'with'or'without'amendment,'the'following'resolution'as'an'ordinary' resolution:'

“That,'Jeremy'King,'having'been'appointed'as'a'Director'of'the'Company'by'the'Board'of'Directors'on'11'January' 2017,'offers'himself'for'election'pursuant'to'article'13.4'of'the'Company’s'Constitution'and'being'eligible,'is'elected'as' a'Director'of'the'Company.”'

Resolution%2%–%Election%of%Eddie%King%as%a%Director%%

To'consider,'and'if'thought'fit,'to'pass,'with'or'without'amendment,'the'following'resolution'as'an'ordinary' resolution:'

“That,'Eddie'King,'having'been'appointed'as'a'Director'of'the'Company'by'the'Board'of'Directors'on'11'January'2017,' offers'himself'for'election'pursuant'to'article'13.4'of'the'Company’s'Constitution'and'being'eligible,'is'elected'as'a' Director'of'the'Company.”'

Resolution%3%–%Consolidation%of%Capital%

To'consider,'and'if'thought'fit,'to'pass,'with'or'without'amendment,'the'following'resolution'as'an'ordinary' resolution:'

“That,'the'share'capital'of'the'Company'be'consolidated'through'the'conversion'of'every'one'hundred'(100)'Shares' into'one'(1)'Share,'and'that'any'resulting'fractions'of'Shares'be'rounded'up'to'the'nearest'whole'number'of'Shares.”'

Resolution%4%–%Approve%the%issue%of%up%to%13,333,333%post%consolidation%Shares%

To'consider'and,'if'thought'fit,'to'pass,'with'or'without'amendment,'the'following'resolution'as'an'ordinary' resolution:'

“That,'for'the'purposes'of'Listing'Rule'7.1'and'all'other'purposes,'approval'is'given'for'the'Company'to'issue'up'to' 13,333,333'post'consolidation'Shares'on'the'terms'and'conditions'set'out'in'the'Explanatory'Statement.”'

Voting%Exclusion%Statement: 'The'Company'will'disregard'any'votes'cast'on'this'Resolution'by'any'person'who'may'participate'in'the'issue'or'might'obtain'a'benefit' (except'a'benefit'solely'in'the'capacity'of'a'holder'of'ordinary'securities)'if'this'Resolution'is'passed,'together'with'any'associates'of'those'persons.''However,'the' Company'need'not'disregard'a'vote'if:'

• it'is'cast'by'a'person'as'proxy'for'a'person'who'is'entitled'to'vote,'in'accordance'with'the'directions'on'the'proxy'form;'or'

• it'is'cast'by'the'person'chairing'the'Meeting'as'proxy'for'a'person'who'is'entitled'to'vote,'in'accordance'with'a'direction'on'the'proxy'form'to'vote'as' the'proxy'decides.'''

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2.%Determination%of%voting%entitlement%

For' the' purpose' of' determining' a' person’s' entitlement' to' vote' at' the' Meeting,' a' person' will' be' recognised' as' a' shareholder'and'the'holder'of'Shares'if'that'person'is'registered'as'a'holder'of'those'Shares'at'7:00'p.m.'AEST'on'12' May'2017.'

3.%Votes%

Unless'a'poll'is'demanded'in'advance'of'voting'on'a'resolution,'voting'on'each'resolution'will'initially'be'by'way'of'a' show'of'hands.''On'a'show'of'hands,'each'member'present'in'person'or'by'proxy'or,'in'the'case'of'a'body'corporate,' by'a'representative,'shall'have'one'vote.'

On' a' poll,' every' member' present' in' person' or' by' attorney' or' by' proxy' or,' in' the' case' of' a' body' corporate,' by' a' representative,'shall'have'one'vote'for'each'share'held'by'him,'her'or'it.

4.%Proxies

A' Shareholder' entitled' to' attend' and' vote' is' entitled' to' appoint' a' proxy' to' attend' and' vote' instead' of' the' Shareholder.'

Where'the'Shareholder'is'entitled'to'cast'two'or'more'votes,'the'Shareholder'may'appoint'two'proxies'and'may' specify' the' proportion' or' number' of' votes' each' proxy' is' appointed' to' exercise.' ' If' the' Shareholder' appoints' two' proxies'and'the'appointment'does'not'specify'the'proportion'or'number'of'the'Shareholder’s'votes'each'proxy'may' exercise,'each'proxy'may'exercise'half'of'the'votes.''A'proxy'need'not'be'a'Shareholder.'

To'be'effective,'the'instrument'of'appointment'of'a'proxy'(and'power'of'attorney'or'other'authority,'if'any,'under' which'it'is'signed'or'a'certified'copy'of'that'power'or'authority)'must'be'received'by'the'Company'in'person'at'Suite' 3,'35'Toorak'Road'South'Yarra'VIC,'by'mail'at'PO'Box'804'South'Yarra'VIC'3141'or'by'facsimile'on'03'8'678'1747'by' 12:00'p.m.'AEST'on'14'May'2017.

If'you'choose'to'appoint'a'proxy,'you'are'encouraged'to'direct'your'proxy'how'to'vote'on'the'Resolutions'by'marking' either'“For”,'“Against”'or'“Abstain”'on'the'form'of'proxy'for'that'item'of'business.''Subject'to'the'voting'restrictions' set' out' in' the' Voting' Exclusion' Statements,' the' Chairperson' will' vote' undirected' proxies' on,' and' in' favour' of' all' Resolutions.''A'form'of'proxy'accompanies'this'Notice'of'Meeting.'

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EXPLANATORY%STATEMENT%

This'Explanatory'Statement'is'intended'to'provide'Shareholders'with'sufficient'information'to'assess'the'merits' of'the'Resolutions'contained'in'this'Notice.'

The'Directors'recommend'that'Shareholders'read'this'Explanatory'Statement'in'full'before'making'any'decision' in'relation'to'the'Resolutions.'

Resolution%1%–%Election%of%Jeremy%King%as%a%Director%

In'accordance'with'article'13.4'of'the'Company’s'Constitution,'Jeremy'King,'a'Director'appointed'subsequent'to' the'last'Annual'General'Meeting'of'the'Company'and'retiring'at'the'close'of'this'General'Meeting,'offers' himself'for'election'as'a'Director.'

Jeremy'King'is'a'corporate'advisor'with'over'15'years’'experience'in'domestic'and'international'legal,'financial'and' corporate' matters.' He' spent' several' years' in' London' where' he' worked' with' Allen' &' Overy' LLP' and' Debevoise' &' Plimpton' LLP' and' has' extensive' corporate' experience,' particularly' in' relation' to' crossfborder' private' equity,' leveraged'buyfout'acquisitions'and'acting'for'banks,'financial'institutions'and'corporate'issuers'in'respect'of'various' debt'and'equity'capital'raisings.''Mr'King'regularly'advises'ASX'listed'companies'on'a'range'of'corporate'matters'and' currently'serves'as'nonfexecutive'director'of'Red'Mountain'Mining'Limited'(ASX:RMX),'DTI'Group'Limited'(ASX:'DTI),' Smart' Parking' Limited' (ASX:' SPZ),' Transcendence' Technologies' Limited' (ASX:' TTL)' and' Aquaint' Capital' Holdings' Limited'(ASX:'AQU).'

Director’s%recommendation%

Nonfassociated'Directors'recommend'that'shareholders'vote'in'favour'of'Resolution'1.'

Resolution%2%–%Election%of%Eddie%King%as%a%Director%

In'accordance'with'article'13.4'of'the'Company’s'Constitution,'Eddie'King,'a'Director'appointed'subsequent'to' the'last'Annual'General'Meeting'of'the'Company'and'retiring'at'the'close'of'this'General'Meeting,'offers' himself'for'election'as'a'Director.'

Mr.'King'is'a'qualified'Mining'Engineer.'Mr.'King'holds'a'Bachelor'of'Commerce'and'Bachelor'of'Engineering'from'The' University'of'Western'Australia.'Mr'King'is'currently'a'Representative'for'CPS'Capital.''Mr'King’s'past'experience' includes' being' Manager' for' an' investment' banking' firm,' where' he' specialised' in' the' technical' and' financial' requirements'of'bulk'commodity'and'other'resource'projects.'Mr'King'also'serves'as'nonfexecutive'director'of'ASXf listed'Western'Mining'Network'Ltd'(ASX:'WMN),'nonfexecutive'chairman'of'Cabral'Resources'Limited'(ASX:'CBS)'and' Lindian'Resources'Limited'(ASX:'LIN).'

Director’s%recommendation%

Nonfassociated'Directors'recommend'that'shareholders'vote'in'favour'of'Resolution'2.'

Resolution%3%–%Consolidation%of%Capital%

The'Company'proposes'to'consolidate'its'share'capital'through'the'conversion'of'every'one'hundred'(100)'Shares'to' one'(1)'Share.''Under'section'254H'of'the'Corporations'Act,'a'company'may'consolidate'its'shares'if'the'consolidation' is'approved'by'an'ordinary'resolution'of'shareholders'at'a'general'meeting.''

The'primary'reason'for'the'proposed'consolidation'is'that'the'Company'has'a'very'large'number'of'Shares'on'issue' due' to' numerous' historical' equityfbased' capital' raisings' and' capital' transactions.' The' number' of' Shares' is' disproportionate' to' the' Company’s' peers,' so' the' Company' proposes' to' reduce' this' number' by' way' of' this' share' consolidation.'

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Effect%on%Shareholdings%and%proposed%issues%of%capital%

If'the'proposed'Share'consolidation'is'approved'by'the'shareholders,'the'number'of'Shares'on'issue'will'be'reduced' from'2,560,406,871'Shares'to'approximately'25,604,069'Shares.'''

As'the'consolidation'applies'equally'to'all'shareholders,'individual'shareholdings'will'be'reduced'in'the'same'ratio'as' the'total'number'of'Shares'(subject'only'to'the'rounding'of'fractions).''It'follows'that'the'percentage'interest'of'each' shareholder'in'the'Company'will'not'change'as'a'result'of'the'proposed'consolidation'f'other'than'minor'changes'as'a' result'of'rounding.'

The'Company'has'no'options'or'other'equity'securities'on'issue.'

Holding%Statements%

From'the'date'of'the'consolidation'all'holding'statements'for'Shares'will'cease'to'have'any'effect,'except'as'evidence' of' entitlement' to' a' certain' number' of' Shares' on' a' postfconsolidation' basis.' ' After' the' consolidation' becomes' effective,'the'Company'will'arrange'for'new'holding'statements'to'be'issued'to'shareholders.''It'is'the'responsibility' of'each'shareholder'to'check'the'number'of'Shares'held'prior'to'disposal.''

Taxation%implications%

Shareholders' are' encouraged' to' seek' and' rely' on' their' own' professional' advice' in' relation' to' their' tax' position.'' Neither'the'Company'nor'any'of'its'officers,'employees'or'advisors'assumes'any'liability'or'responsibility'for'advising' shareholders'about'the'tax'consequences'for'them'from'the'proposed'Share'consolidation.''It'is'the'understanding'of' the'Company'that'no'capital'gains'tax'event'will'occur'as'a'result'of'the'consolidation'and'therefore'there'should'be' no'taxation'implications'arising'for'Shareholders.'

Other%information%

Where'the'consolidation'of'a'Shareholder’s'holding'results'in'a'fraction'of'a'Share,'the'fraction'will'be'rounded'up'to' the'nearest'whole'number'of'Shares.''Other'than'as'set'out'in'this'Notice'and'information'previously'disclosed'to'the' Shareholders,'there'is'no'other'information'that'is'known'to'the'Board'which'may'reasonably'be'expected'to'be' material'to'the'making'of'a'decision'by'the'shareholders'whether'or'not'to'vote'in'favour'of'the'Share'consolidation.'

Timetable%for%consolidation%%

The'Company'will'release'a'proposed'timetable'for'the'consolidation'via'ASX'announcement'upon'lodgement'of'this' Notice'with'ASX.''

Director’s%recommendation%

All'of'the'Directors'recommend'that'shareholders'vote'in'favour'of'Resolution'3.'

Resolution%4%–%Approve%the%issue%of%up%to%13,333,333%post%consolidation%Shares%

Purpose%of%Resolution%4%

Resolution'4'seeks'Shareholder'approval'for'the'allotment'and'issue'of'up'to'13,333,333'post'consolidation'Shares'at' an'issue'price'of'$0.03'per'Share'to'raise'up'to'$400,000.''Shareholder'approval'is'sought'for'the'purposes'of'ASX' Listing'Rule'7.1'and'all'other'purposes.'

ASX%Listing%Rule%7.1%%

ASX'Listing'Rule'7.1'provides'that'a'listed'company'must'not,'subject'to'certain'exceptions,'issue'or'agree'to' issue'more'than'15%'of'its'capital'within'a'12fmonth'period'without'the'approval'of'shareholders.'

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In'addition,'by'obtaining'the'approval'of'the'Shareholders'to'the'issue'of'the'Shares,'on'the'issue'of'those' Shares,'they'will'not'count'within'the'15%'limit'when'determining'compliance'by'the'Company'with'Listing' Rule'7.1'in'the'next'12'month'period.''

By'approving'the'issue'of'the'Shares'in'advance,'the'Company'maintains'the'maximum'ability'to'be'able'to' issue'securities'without'the'need'for'Shareholder'approval.''That'is'important'as'it'provides'the'Company'with' flexibility'and'the'ability'to'maximise'new'investment'opportunities'as'and'when'they'arise.'

Information%required%by%ASX%Listing%Rule%7.3%

In'compliance'with'the'information'requirements'of'ASX'Listing'Rule'7.3,'Shareholders'are'advised'of'the'following' particulars'on'the'allotment'and'issue:''

Maximumnumberof securitiestobeissued	Upto13,333,333postconsolidationShares.
DatebywhichtheShares willbeissued	TheShareswillbeissuedprogressivelyandnolaterthan3monthsafterthedate oftheMeeting.
Theissuepriceof securities	$0.03perShare(postconsolidation)raisingupto$400,000.
Termsofissue	TheSharesissuedwillbefullypaidordinarySharesinthecapitalofthe CompanyandwillrankequallywithallexistingSharesonissue.
Nameofallotteesor basisonwhichallottees willbedetermined	TheShareswillbeallottedandissuedtosophisticatedandprofessionalinvestors and/orclientsofAustralianbasedstockbrokingfirms(whoarenotrelatedparties oftheCompany).
Useoffunds	GiventheCompany’slowcashposition,fundsraisedwillbeusedforworking capitalpurposes,tomeetthecostsoftheofferandtofundduediligenceon potentialacquisitionopportunities.

Director’s%recommendation%

All'of'the'Directors'recommend'that'shareholders'vote'in'favour'of'Resolution'4.'

FURTHER%INFORMATION:%

Justyn%Stedwell% Company%Secretary% Phone:%03%9%041%6663%

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GLOSSARY%

Words'importing'the'singular'include'the'plural'and'vice'versa.'

In'the'Notice'of'Meeting'and'Explanatory'Statement'the'following'terms'have'the'following'meanings:'

$ means'Australian'Dollars.

AEST 'means'Australian'Eastern'Standard'Time.'

ASX 'means'ASX'Limited.'

Board 'means'the'board'of'directors'of'the'Company.'

Company% means'Axxis'Technology'Group'Limited'(ACN'009'805'298).'

Constitution% means'the'constitution'of'the'Company.

Corporations%Act 'means'Corporations'Act'2001'(Cth).'

Director% means'a'current'director'of'the'Company.'

Explanatory%Statement 'means'the'explanatory'statement'to'this'Notice'of'Meeting.'

Meeting 'means'the'General'Meeting'of'the'Shareholders'of'the'Company'to'be'held'on'16'May'2017,'to'which'the' Notice'of'Meeting'and'Explanatory'Statement'relate.

Notice%of%Meeting 'means'this'notice'of'meeting'of'the'Company'dated'12'April'2017.

Resolution 'means'a'resolution'referred'to'in'the'Notice.'

Share 'means'a'fully'paid'ordinary'share'in'the'capital'of'the'Company.'

Shareholder% means'a'holder'of'Shares.'

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AXXIS%TECHNOLOGY%GROUP%LIMITED%4%PROXY%FORM%FOR%GENERAL%MEETING%OF%SHAREHOLDERS%

STEP%1%–%Appointment%of%Proxy%

I/We%% __________________%

of% __________________%

am/are%a%member%of%Axxis%Technology%Group%Limited%(ACN%009%805%298)%and%I/we%appoint%as%my/our%proxy:%

______________%

Or%failing%him%or%her,%the%Chairman%of%the%General%Meeting%of%the%Company,%to%be%held%at%Seasons%Botanic%Gardens%Melbourne,%348%St%Kilda% Road,%Melbourne,%VIC,%3004%on%Tuesday,%16%May%2017%at%12:00%PM%AEST%to%vote%for%me/us%at%the%meeting%and%at%any%adjournment%of%it.%%If%2% proxies%are%being%appointed%the%proportion%of%voting%rights%this%proxy%is%authorised%to%exercise%is%…………...%.%(The%Company%will%supply%an% additional%form%on%request).%

STEP%2%'%Voting%directions%to%your%Proxy%–%please%mark% ! %to%indicate%your%directions%

For$ Against$ Abstain$

		For	Against	Abstain
Resolution1	ElectionofJeremyKingasaDirector
Resolution2	ElectionofEddieKingasaDirector
Resolution3	ConsolidationofCapital
Resolution4	Approvetheissueofupto13,333,333postconsolidationShares

The%Chairman%intends%to%vote%all%undirected%proxies%in%favour%of%all%Resolutions.%%%If%you%do%not%wish%to%direct%your%proxy%on%how%to%vote,% please%tick%this%box:%

By%ticking%this%box,%I/we%authorize%the%Chairman%of%the%Meeting%to%vote%in%accordance%with%the%Chairman's%voting%intentions%on%Resolutions%1% to%4%even%if%the%Chairman%of%the%Meeting%has%an%interest%in%the%outcome%of%these%items%and%that%votes%cast%by%the%Chairman,%other%than%as% proxy%holder,%would%be%disregarded%because%of%that%interest.%%if%you%do%not%mark%this%box,%and%you%have%not%directed%your%proxy%how%to%vote,% the%Chair%will%not%cast%your%votes%on%the%Resolutions%and%your%votes%will%not%be%counted%in%calculating%the%required%majority%if%a%poll%is%called% on%the%resolution.%%%

STEP$3$F$PLEASE$SIGN$HERE$$

This$section$ must $be$signed$to$enable$your$directions$to$be$implemented.

Individual$or$Securityholder$1 Securityholder$2 Securityholder$3

Sole$Director$and$Sole$Company$Secretary Director Director/Company$Secretary$

Contact$Name %……………………………….……………………… Contact$Daytime$Telephone$ ……………………………………………….%% Date %%%%%%%%%%%%%%/%%%%%%%%%%%/%2017%%

PROXY$INSTRUCTIONS :%A%member%entitled%to%attend%and%vote%at%a%meeting%is%entitled%to%appoint%not%more%than%2%proxies.%%Where%more%than% 1%proxy%is%appointed,%each%proxy%may%be%appointed%to%represent%a%specific%portion%of%the%member’s%voting%rights.%A%proxy%need%not%be%a% member%of%the%Company.%%A%proxy%form%must%be%signed%by%the%member%or%his%or%her%attorney.%Proxies%given%by%corporations%must%either%be% signed%under%seal%or%under%the%hand%of%a%duly%authorised%officer%of%attorney.%%To%be%valid,%the%form%appointing%the%proxy%and%the%Power%of% Attorney%or%other%authority%(if%any)%under%which%it%is%signed%(or%a%certified%copy)%must%be%received%by%the%Company,%in%person%at%Suite%3,%35% Toorak%Road%South%Yarra%VIC,%by%mail%at% PO$Box$804$South$Yarra$VIC$3141 %or%by%facsimile%on%03%8%678%1747% by$not$later$than$12:00$p.m.$AEST$ on$14$May$2017.$$