HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2023

Apr 16, 2023

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17 April 2023

Rights Issue with Free Attaching Option

Hydrocarbon Dynamics Limited (“HCD”) announces that it will undertake a 1 for 4 non-renounceable Rights Issue at $0.012/share to raise up to approximately $1.76m. In addition, one free attaching option for every new share will be issued, exercisable at $0.02 and expiring on 12 May 2025. The issue price of the Rights Issue is a 9% discount to the prevailing 30 day VWAP of $0.0132.

The small capital raising and discounted price has been structured to encourage shareholder participation and the Company will seek to place any shortfall with sophisticated investors. All Australia directors have stated their intention to support the rights issue for their full allocation.

Peloton Capital Pty Ltd has been appointed to assist Directors to place any shortfall. The Rights Issue is not underwritten.

Funds raised from the Rights Issue to allow the Company to continue marketing its key product, HCD Multi-Flow® and to continue to review investment opportunities in the energy and energy technology space as well as for general working capital purposes.

The indicative timetable for the Rights Issue offer is set out below:

Event	Date
Announcement of the Entitlement Offer, and lodgement of thisProspectus with each of ASIC and ASX	Monday, 17 April 2023
Shares traded on an “ex” entitlement basis	Wednesday, 19 April 2023
Record Date for eligibility to participate in the Entitlement Offer	Thursday, 20 April 2023
Despatch of Entitlement Prospectus and Entitlement andAcceptance Form to Eligible Shareholders	Monday, 24 April 2023
Entitlement Offer opens	Monday, 24 April 2023
Last date to extend the offer closing date	Wednesday, 3 May 2023
Entitlement Offer closes	Monday, 8 May 2023
Securities quoted on a deferred settlement basis	Tuesday, 9 May 2023
Shortfall (if any) announced to ASX	Thursday, 11 May 2023
Settlement of New Shares and New Options under the Entitlement	Friday, 12 May 2023
Offer
Issue of New Shares and New Options under Entitlement Offer	Friday, 12 May 2023
Despatch of Holding Statements	Monday, 15 May 2023

ABN: 75 117 387 354 Tel: +61 3 9642 2899 | Fax: +61 3 9642 5177 Level 6, 412 Collins Street, Melbourne VIC 3000 Australia

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This announcement has been approved by the Board of Directors.

For further information please contact:

Stephen Mitchell Chairman

Julie Edwards Company Secretary

Telephone: +61 3 9642 2899 Website: www.hcdinvestor.com ASX code: HCD

ABN: 75 117 387 354 Tel: +61 3 9642 2899 | Fax: +61 3 9642 5177 Level 6, 412 Collins Street, Melbourne VIC 3000 Australia