ENERGY TECHNOLOGIES LIMITED — Capital/Financing Update 2020

Dec 17, 2020

==> picture [95 x 43] intentionally omitted <==

ENERGY TECHNOLOGIES LIMITED

A.B.N. 38 002 679 469

Unit J, 134 - 140 Old Pittwater Road Brookvale NSW 2100 Tel: +61 2 9938 5622 www.energytechnologies.com.au

Australian Stock Exchange Company announcements platform

18 December 2020

ABN 38 002 679 469

Energy Technologies Limited (ASX:EGY) – Capital Raising

Energy Technologies Limited (EGY or the Company) is pleased to announce the successful completion of a capital raising of $1.8 million.

The raising was undertaken by way of a Placement of new shares issued to professional and sophisticated investors.

Funds raised under the capital raising will be used to fund the Company’s growth and new business development strategy, including:

• Provision of working capital to wholly-owned operating subsidiary, Bambach Wires and Cables Pty Ltd, to fund an increase in raw material purchases;

• Increasing inventories for:

  • Proprietary manufactured & branded existing and new products, including SafeX (low smoke zero halogen cables), Vari-Flex (variable speed drive cables), TrackSure and TrackDrive (railway signalling and power cables), Traffi-Cab and Detecta-Cab (road signalling cables) and LoadFleX (street lighting cables);

  • New products to be launched over the medium term that will cater to identified demand for cables required for solar power & energy generation, shipbuilding (including naval vessels) and train & rail infrastructure (including locomotives & carriages; as well as road & rail tunnels);

• Replenish general working capital reserves and bolster tendering facilities; and

• Applied to the costs of undertaking the Placement.

The issue price represented a discount of:

• 0.22% to the 10-day VWAP of $0.0802; and

• 0.0% to the last traded price of $0.8000.

The capital raising comprised of Placement of 22,500,000 fully paid ordinary shares to sophisticated and professional investors. The issue of shares under the Placement is expected to occur on Friday, 18 December 2020 and will be made without shareholder approval using the Company’s existing capacity under ASX Listing Rule 7.1 and ASX Listing Rule 7.1A.

Of the 22,500,000 fully paid ordinary shares issued, 22,240,943 ordinary shares will be issued under ASX Listing Rule 7.1. The balance of 259,057 ordinary shares will be issued under ASX Listing Rule 7.1A.

The Company and the Lead Manager approached existing sophisticated and wholesale investors on the register, as well as clients of the Lead Manager, to participate in the Placement. The Placement was allocated on a preferred basis to existing qualified shareholders identified by the Company and then professional and sophisticated investors introduced by the Lead Manager. The allocation was on a best efforts basis to allocate pro rata to existing holders. There has been no significant exceptions or deviations from the objective or criteria. As far as the Company is aware, no securities were issued or agreed to be issued in the Placement to any related party.

All new shares issued will rank equally with existing Shares on issue and the Company will apply for Official Quotation on ASX of the new Shares.

PAC Partners Securities Pty Limited acted as Lead Manager to the capital raising.

END

Authorised by the Managing Director

For further information please contact:

Mr. Alfred Chown Managing Director Energy Technologies Limited (612) 9938 5622 Alf.Chown@energytechnologies.com.au

website: www.energytechnologies.com.au

About Energy Technologies

Energy Technologies Limited (ABN 38 002 679 469) seeks to develop business opportunities in niche sectors of the electric power industry either by the introduction and manufacturing of innovative new products with market dominance potential due to their unique nature or by the acquisition of established but tired manufacturing brands that offer market dominance potential via a sustained turnaround and the infusion of new ideas, people and capital. In both cases the company follows strict investment criteria and relies on the proven experience of its management and advisory team to determine which products or companies it should develop and how such development should take place. The Company has a 100% ownership of Bambach Wire and Cables Pty Ltd, a manufacturer of low voltage copper insulated cables, as well as a strategic holding in Dulhunty Poles Pty Ltd, a manufacturer of fiber reinforced cement distribution poles. It also owns 100% of Cogenic Pty Ltd, a development company focused on the renewable energy sector. Learn more about Energy Technologies at www.energytechnologies.com.au