LARK DISTILLING CO. LTD — Capital/Financing Update 2018

Mar 19, 2018

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20[th] March 2018

SECTION 708A NOTICE

On 14 March 2018 Australian Whisky Holdings Limited ( the Company ) completed a placement of 106,573,568 ordinary shares at an issue price of $0.03 per share ( Placement ).

Information required by Listing Rule 3.10.5A

The Company provides the following information as required under ASX Listing Rule 3.10.5A in respect of the shares:

• (a) The dilutive effect of the Placement on existing shareholders is as follows:

		% of post-
	Number of securities	Placement
	issued	issued share
		capital
Placement shares issued underListing Rule 7.1	63,944,141	11.99%
Placement shares issued underListing Rule 7.1A	42,629,465	8.00%
Total		19.99%

Of the Placement shares issued under Listing Rule 7.1A, 34,303,931 shares were issued to non-existing shareholders, resulting in a dilutive effect on existing shareholders of approximately 7.45%.

• (b) The Company issued the shares to sophisticated and professional investors as it was considered the most efficient and expedient method for raising funds to increase the Company’s working capital and meet the Company’s objectives.

• (c)

  • No underwriting arrangements were in place for the Placement.

• (d) The Company’s other costs incurred in relation to the Placement were $191,832.42 in fees payable to the Lead Manager and Bookrunner to the Placement, Bell Potter Securities Limited. Subject to shareholder approval, the Company has also agreed to issue approximately 12,861,882 options to Bell Potter Securities Limited pursuant to a mandate letter. One third of the options issued will have an exercise price of $0.03 per option, one third will have an exercise price of $0.0375 and one third will have an

AUSTRALIAN WHISKY HOLDINGS LIMITED Level 4, 283 George Street, Sydney NSW ASX CODE: AWY ABN 6210 4600 544 w australianwhiskyholdings.com Phone: +61(2)8188 1491

exercise price of $0.045. The options will have a term of 3 years from the date of allotment.

Secondary Trading Exemption Notice

For the purposes of section 708A(5)(e) of the Corporations Act 2001 (Cth) ( the Act ) in relation to the Placement, the Company advises:

• (a) the Placement Shares were offered for issue without disclosure under Chapter 6D.2 of the Act;

• (b) as at the date of this notice, the Company has complied with:

  • (i) the provisions of Chapter 2M of the Act as they apply to the Company; and

  • (ii) section 674 of the Act,

• (c) as at the date of this notice, there is no excluded information of the type referred to in sections 708A(7) and 708A(8) of the Act.

Yours sincerely

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Gary Stewart Company Secretary