JOYCE CORPORATION LTD — Capital/Financing Update 2021

Dec 19, 2021

20 December 2021

Sale of Corporate Property

Sale aligned with strategic direction, contributes to disciplined capital management

Joyce Corporation Ltd (ASX:JYC) is pleased to announce it has entered into a sale and leaseback agreement for its corporate office and warehouse facility in Osborne Park, Western Australia. The sale of the property will realise approximately $5.5 million in cash (before costs) and will lead to a more efficient allocation of the company’s capital in accordance with the strategic direction of the business.

Terms of the Transaction

The sale agreement, with Pollutri Nominees Pty Ltd ACN 651 818 058 as trustee for The Stanja Trust ( Purchaser ), is conditional on the Purchaser obtaining finance within 60 days of the date of sale agreement ( Finance Condition ), and is otherwise on customary terms. On completion of the sale, the Purchaser will pay approximately $5.5 million in cash to Joyce.

The transaction is expected to be completed by the date which is the later of:

• (a) 5 business days after the satisfaction of the Finance Condition by the Purchaser; and

• (b) 21 days after the date of the sale agreement.

In connection with the sale, Joyce has also entered into arrangements with the Purchaser for a 5 year lease (with two further five-year options) to retain tenancy of the office space and 1 of 3 warehouses, both areas we currently occupy. The lease will commence on completion of the property sale.

Joyce’s Chief Executive Office, Dan Madden commented:

“ The sale and leaseback arrangement is consistent with the strategic direction of the business as the Company continues to build a solid platform from which to drive its growth ambitions further.

“Joyce is first and foremost focused on organic growth opportunities for both KWB and Bedshed and an expansion of the footprint of our KWB Group and Bedshed retail stores.

“We will also apply a disciplined framework to continue to explore new growth opportunities that support long term, sustainable growth. In doing so we will apply a filter to look in adjacent sectors or complementary areas that have a natural fit with our existing portfolio and expertise or offer other synergies.

Opportunities that require a relatively low capital outlay are of particular focus and may come from new organic growth activities from the ground up, or from opportunistically considering potential acquisitions if they are of a commensurate size and scale.

We look forward to developing our plans and updating the market about them over the coming months. ”

ENDS

For further information, please contact:

Dan Madden – CEO +61 8 9455 1055 This release has been authorised by the Board of Joyce Corporation Ltd

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