MYECO GROUP LTD — Capital/Financing Update 2016

Dec 22, 2016

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ASX RELEASE

23 December 2016

SECOS RAISES $995,758 FROM ISSUE OF CONVERTIBLE NOTES

Highlights:

• SECOS raises $995,758 through issue of two-year convertible notes to sophisticated investors

• Investment to fund working capital and meet strong continued demand for highperformance sustainable packaging

• Notes to accrue interest at 10% per annum paid quarterly with a conversion price at the lower of a 15% discount to 10-day VWAP and the price of any equity capital raising in the preceding two months, capped at $0.12 per share

• Conversion permitted after 6 months and before two years, or redeemable for cash at face value if not redeemed before the end of the two-year term

• SECOS welcomes NWR Communications as investor and media relations manager

Sustainable packaging company SECOS Group Limited (ASX: SES, “the Company”) is pleased to announce that it has finalised the issue and placement of $995,758 in unsecured convertible notes (“Notes”).

Proceeds of the issue will be used to fund additional working capital as the Company meets continued strong demand from international markets, notably the US and Japan.

A portion of the investment in the Notes has been made by Chairman Richard Tegoni, Director Don Haller and CFO Edmond Tern ($405,846). The Directors will seek approval from shareholders at the next general meeting to allow for conversion on the same terms as other Note holders.

SECOS Managing Director, Stephen Walters, said:

“We are pleased to gain the support of our new convertible note investors on terms favourable to the Company as we position ourselves for an exciting 2017.

“This investment will provide SECOS with the working capital to implement the Company’s near-term business plan. My fellow directors and I are excited by the opportunities SECOS is pursuing as we continue to grow in the sustainable plastics market.

SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6805 e: info@secosgroup.com.au www.secosgroup.com.au

“We appreciate the vote of confidence in the Company’s direction that this debt program represents, and are looking forward to rewarding investors’ belief in SECOS’ ability to achieve its vision.”

Convertible note details

With a face value per Note of $1.00, Notes will be convertible into fully paid ordinary shares in the Company at a conversion price at the lower of the following, subject to a maximum capped price of $0.12 per share:

• 85% of the volume weighted average price of SECOS shares over the 10 trading days immediately preceding the date the Company receives the Conversion Notice

• The price of any equity capital raising that occurred in the two-month period prior to the date the Company receives the Conversion Notice

Notes have a term of two years, with any Note not converted into shares to be redeemable by the Note holder at the end of the term.

Notes will accrue interest at a rate of 10% per annum with interest paid quarterly or until conversion into shares or redemption by the Note holder at the end of the two-year term.

Patersons Securities Ltd acted as the Lead Manager to the issue.

Convertible Notes will be issued under the Company’s 15% placement capacity pursuant to Listing Rule 7.1

Appointment of investor and media relations manager

As part of its ongoing efforts to develop effective two-way communication between the Company and the financial community, SECOS is pleased to welcome NWR Communications to manage the Company’s investor and media relations.

The Company appreciates the ongoing support of its investors and welcomes all feedback through the channels listed below.

For more information, please contact:

Stephen Walters

Managing Director +61 412 282 396 swalters@secosgroup.com.au

Tim Dohrmann

Investor and Media Enquiries +61 468 420 846 tim@nwrcommunications.com.au

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About SECOS Group Limited

SECOS Group Limited (ASX: SES) is a leading developer and manufacturer of sustainable packaging materials. Based in Melbourne, Australia, SECOS supplies its proprietary biodegradable resins, packaging products and high-quality cast films to a blue-chip global customer base.

SECOS holds a strong patent portfolio and the global trend toward sustainable packaging is fueling the Company’s growth, bringing FY16 revenue of $21 million.

The Company’s headquarters and Global Application Development Centre are based in Melbourne, Australia. SECOS has a Product Development Centre and manufacturing plant for resins and finished products in Nanjing, China, with manufacturing plants for high quality cast films in Melbourne and Kuala Lumpur, Malaysia.

SECOS has sales offices in Australia, Malaysia, China and the US, with a network of leading distributors across the Americas, Asia and Europe.

SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6805 e: info@secosgroup.com.au www.secosgroup.com.au