MYECO GROUP LTD — Capital/Financing Update 2017

Nov 26, 2017

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ASX RELEASE

27 November 2017

SECOS raises $2.0m from issue of convertible notes

Highlights:

• SECOS raises $2,040,900 through the issue of convertible notes to sophisticated investors

• Investment is to fund working capital and address demand for biodegradable resin

• Convertible 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, with a maximum price of $0.12 per share and a minimum price of $0.04 per share

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

Sustainable and eco-friendly bioplastics developer SECOS Group Limited (ABN 89 064 755 237, ASX: SES) (“SECOS” or “the Company”) is pleased to announce that it has raised $2,040,900 through the issue and placement of unsecured convertible notes (“Notes”).

A portion ($292,308) of the Notes have been issued to directors Richard Tegoni and Don Haller Jr., such issue being made with shareholder approval.

Proceeds of the issue are to fund additional working capital as the Company experiences new demand from international markets.

SECOS Group Managing Director, Stephen Walters, said:

“We are pleased to receive an overwhelming support from both existing shareholders and new investors as we embrace the upsurge in demand of our biodegradable resin.

“This investment will provide SECOS with the working capital to fund the growth in this new market and to support the Company’s China restructuring plan.”

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 6800 e: info@secosgroup.com.au www.secosgroup.com.au

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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 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; and

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

• Minimum price of $0.04 per share

Conversion of the Convertible Notes is permitted after 6 months and before three years, or redeemable for cash at face value if not redeemed before the end of the three-year term.

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

The Convertible Notes issued to the directors of the Company are on the same principal terms as those issued to the sophisticated investors, except for the requirement for shareholder approval on convertibility of the Convertible Notes.

All shares issued on conversion of the Convertible Notes will rank equally with the existing shares in the capital of the Company.

Convertible Notes will be issued under the Company’s 15% placement capacity pursuant to Listing Rule 7.1, and in compliance with ASX Listing Rule 7.8.

For more information, please contact:

Richard Tegoni Executive Chairman +61 411110901 r.tegoni@secosgroup.com.au

Edmond Tern Company Secretary +61 433369997 etern@secosgroup.com.au

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 6800 e: info@secosgroup.com.au www.secosgroup.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 FY17 revenue of $22 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 as well as high quality cast films manufacturing plants 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 6800 e: info@secosgroup.com.au www.secosgroup.com.au