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EXPERIENCE CO LIMITED Capital/Financing Update 2016

Sep 27, 2016

64892_rns_2016-09-27_f9757dfc-28a3-4a67-aba6-cab140a6132f.pdf

Capital/Financing Update

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28 SEPTEMBER 2016

SKYDIVE THE BEACH GROUP LIMITED (ACN 167 320 470) (ASX: SKB)

ASX ANNOUNCEMENT

$19.6m UNDERWRITTEN ACCELERATED NON-RENOUNCEABLE ENTITLEMENT ISSUE ASX

Skydive the Beach Group Limited (" SKB " or " Company ") is pleased to announce a fully underwritten accelerated non-renounceable entitlement issue (" Entitlement Issue ") to raise $19,626,363 before costs. Under the Entitlement Issue, shareholders will be entitled to acquire 2 new ordinary shares (" New Shares ") for every 21 held at 7.00pm (Sydney time) on Friday, 30 September 2016 at an issue price of $0.52 per New Share.

Based on the Company's capital structure, the maximum number of New Shares that may be issued under the Entitlement Issue is approximately 37,742,986 New Shares.

The Entitlement Issue will comprise an institutional component (" Institutional Offer "), and a retail component (" Retail Entitlement Offer "). The Institutional Offer will raise approximately $18.9 million from institutional and sophisticated investors in the Company for the issue of 36.5 million New Shares. The Retail Entitlement Offer will raise approximately $0.6 million for the issue of 1.2 million New Shares to eligible shareholders.

The offer price of $0.52 per New Share represents a 10.3% discount to the last traded price $0.58 on Tuesday, 27 September 2016 (being the last traded price before the announcement of the Entitlement Issue) and a discount of 9.53% to the theoretical ex-rights issue price (TERP) of $0.5748.

The Entitlement Issue is fully underwritten by Veritas Securities Limited (" Underwriter ").

The funds raised from the Entitlement Issue will predominantly be used to acquire all of the issued capital in Raging Thunder Pty. Ltd., further details of which will be set out in a forthcoming ASX Announcement.

An offer document relating to the Entitlement Issue (" Retail Offer Booklet ") will be released to the ASX and is expected to be mailed to eligible retail shareholders on Wednesday, 5 October 2016, together with a personalised Entitlement and Acceptance Form.

Timetable

The current proposed timetable for the Entitlement Issue is as follows:

Institutional Offer & Bookbuild Wednesday,28 September 2016
Institutional Offer Results Friday,30 September 2016
Record Date (for eligible for the Retail Friday, 30 September 2016
Entitlement Offer)

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

www.skydive.com.au [email protected]

L E A V E Y O U R W O R L D B E H I N D

T: 1300 663 634 F: 1300 338 803

RetailOfferBooklet,togetherwithPersonalised Entitlement and AcceptanceFormdispatchedtoeligibleretailshareholders Wednesday, 5 October 2016
Retail Entitlement Offer opens Wednesday,5 October 2016
Institutional Offer settlement date Thursday,6 October 2016
Quotation of New Shares issued underInstitutional Offer Friday, 7 October 2016
Retail Entitlement Offer closes Monday,17 October 2016
Announce Results & Shortfall(if any) Thursday,20 October 2016
Placement of Shortfall(if any) Monday,24 October 2016
Retail Entitlement Offer settlement date Monday,24 October 2016
Issue of New Shares under the RetailEntitlement Offer Tuesday, 25 October 2016
Quotation of New Shares under the RetailEntitlement offer Wednesday, 26 October 2016
Despatch of holdings statements Thursday,27 October 2016

The dates and times in the timetable above are indicative only and subject to change. All times and dates refer to Sydney time (AEDT). SKB, in conjunction with the Underwriter reserves the right to amend any or all of these dates and times without notice subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws. In particular, SKB reserves the right to extend the closing date of the Retail Entitlement Offer, to accept late applications under the Retail Entitlement Offer (either generally or in particular cases) and to withdraw the Retail Entitlement Offer without prior notice. Any extension to the closing date will have a consequential effect on the issue date of New Shares.

Further details regarding the Entitlement Issue are included in forthcoming ASX Announcements relating to an Investor Presentation, an Appendix 3B and in the Retail Offer Booklet expected to be released on Wednesday, 5 October 2016.

CONTACT INFORMATION

Media Investors Justin Kelly, Director Skydive the Beach Group Limited Media & Capital Partners Anthony Ritter p: +61 408 215 858 Company Secretary e: [email protected] p: 1300 663 634 e: [email protected]

ABOUT SKYDIVE THE BEACH GROUP LIMITED (ASX:SKB)

Skydive the Beach Group Limited ("SKB") is a tandem skydiving, and adventure tourism and leisure company. It provides tandem skydiving experiences in locations across four Australian states and on the South Island of New Zealand. From origins in 1999, it has become a profitable business with a track record of earnings growth. In March 2015, SKB successfully completed an initial public offer (IPO) and listed on the Australian Securities Exchange and acquired Australia Skydive Pty Ltd. In October 2015 SKB acquired NZone Skydive and in July 2016 SKB acquired Skydive Wanaka and now has 18 dropzones in Australia and New Zealand.

For further information www.skydive.com.au

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

www.skydive.com.au [email protected] T: 1300 663 634 F: 1300 338 803

L E A V E Y O U R W O R L D B E H I N D