ENERGY TECHNOLOGIES LIMITED — Capital/Financing Update 2020

Jun 23, 2020

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ENERGY TECHNOLOGIES LIMITED

A.B.N. 38 002 679 469

102 Old Pittwater Road Brookvale NSW 2100 Tel: +61 2 9938 5622 Fax: +61 2 9939 9812 www.energytechnologies.com.au

Australian Stock Exchange Company announcements platform

24 June 2020

ABN 38 002 679 469

Energy Technologies Limited (ASX:EGY) – Capital Raising

Highlights

• Up to $5 million capital raising, comprising a $1.6 million Placement and a nonrenounceable $3.4 million Rights Issue

• Placement oversubscribed by a number of institutional investors, and a family office

• Capital raised will be used to fund the purchase of raw materials to increase inventory in operating subsidiary, Bambach Wires and Cables; and to replenish working capital & tendering facilities

Energy Technologies Limited (ASX:EGY) is pleased to announce a capital raising of up to $5 million, comprising a $1.6m Placement and a non–renounceable $3.4 million Rights Issue, at an issue price of $0.08 per share. The Placement closed successfully and was supported by Australian institutional and family office investors, as well as existing shareholders.

Funds raised under the capital raising will be used as follows:

• 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 and Rights Issue.

The issue price represents a discount of:

• 53.8% to the 10-day volume weighted average price of $0.173; or

• 54.3% to the last traded price of $0.175.

The capital raising comprises of Placement of 20,000,000 fully paid ordinary shares to sophisticated and professional investors and a non-renounceable Rights Issue offer of 1 new share for every 2.017 existing Shares held at 7.00pm (AEST) on Wednesday, 24 June 2020 ( Record Date ).

The issue of shares under the Placement is expected to occur on Tuesday, 7 July 2020 and will be made without shareholder approval using the Company’s existing capacity under ASX Listing Rule 7.1 as extended by the ASX Class Waiver Decision - Temporary Extra Placement Capacity.

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.

The Rights Issue is open to all eligible shareholders who have a registered address within Australia or New Zealand, and who hold Shares (as recorded with the Company’s share registry) on the Record date. The Rights Issue will close on Monday, 13 July 2020 (unless extended).

Under the Rights Issue, the Company is seeking to raise $3.4 million (before costs).

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. An Entitlement Offer Booklet in relation to the Rights Issue will be lodged with ASX on Thursday, 2 July 2020 and, together with Rights Issue acceptance forms, will be sent to eligible shareholders shortly after the Record Date.

Eligible shareholders should consider the Entitlement Offer Booklet in deciding to acquire securities under the Rights Issue; and will need to complete the Rights Issue entitlement and acceptance form that will accompany the Entitlement Offer Booklet.

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

INDICATIVE TIMETABLE

The following are indicative dates in respect of the capital raising:

Event	Current dates
Trading Halt Date	Pre-market Monday, 22 June2020
Placement Opening Date	Monday, 22 June 2020
Placement Closing Date	Tuesday, 23 June 2020
Announcement DateLodges708AA cleansing noticeAnnounceOffer to ASX and results ofPlacementLodgeInvestor PresentationLodgeAppendix 3B	Wednesday, 24 June 2020
‘Ex’ date	Friday, 26 June 2020

Record date for Entitlement Offer	Monday, 29 June 2020
Give Entitlement Offer Booklet on ASX	Thursday, 2 July 2020
Dispatch Entitlement Offer Booklet and
acceptance forms to shareholders
Entitlement Offer Opening Date	Thursday, 2 July 2020
Placement Settlement Date	Thursday, 2 July 2020
Placement Allotment Date	Tuesday, 7 July 2020
Placement Shares start trading on normal	Wednesday, 8 July 2020
basis
Entitlement Offer Closing Date	Monday, 13 July 2020
If ASX agrees, Entitlement Offer Shares	Tuesday, 14 July 2020
quoted on a deferred basis
Announcement of results of issue	Thursday, 16 July 2020
Entitlement Offer Settlement Date	Friday, 17 July 2020
EntitlementOfferAllotmentDate	Monday, 20 July 2020
Lodge Appendix 2A
Entitlement Offer Shares start trading on	Tuesday, 21 July 2020
normal basis

The above dates are indicative only and may change, subject to the Corporations Act and ASX Listing Rules.

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