MYECO GROUP LTD — Capital/Financing Update 2018

Oct 22, 2018

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TO: COMPANY ANNOUNCEMENTS OFFICE

ASX LIMITED

DATE: 23 October 2018

RIGHTS ISSUE – CLEANSING NOTICE UNDER SECTION 708AA(2)(F) OF THE CORPORATIONS ACT 2001 (CTH)

On 23 October 2018, SECOS Group Limited ( Company ) announced that it will undertake a nonrenounceable rights issue of 42,246,750 fully paid ordinary shares to its shareholders ( Rights Issue ) on the basis that eligible shareholders will be entitled to subscribe for one (1) ordinary share ( New Share ) for every six (6) existing ordinary shares held at record date, being 7:00pm (AEDT) on Monday, 29 October 2018, at an issue price of $0.062 per New Share to raise $2,700,000.

This notice is given by the Company under section 708AA(2)(f) of the Corporations Act 2001 (Cth) ( Corporations Act ) as notionally modified by ASIC Corporations (Non-Traditional Rights Issue) Instrument 2016/84 ( ASIC Instrument 2016/84 ).

Further details regarding the Rights Issue are set out in the Information Booklet lodged with ASX on 23 October 2018.

For the purposes of section 708AA(7) of the Corporations Act, the Company advises:

• (a) the New Shares will be offered for issue without disclosure under Part 6D.2 of the Corporations Act;

• (b) this notice is being given under section 708AA(2)(f) of the Corporations Act as notionally modified by ASIC Instrument 2016/84;

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

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

  • (ii) section 674 of the Corporations Act;

• (d) as at the date of this notice, there is no information that is ‘excluded information’ (within the meaning of sections 708AA(8) and 708AA(9) of the Corporations Act); and

• (e) the potential effect the Rights Issue will have on the control of the Company, and the consequences of that effect, will depend on a number of factors, including the eligible shareholders’ interest in taking up their entitlements as well as the level of participation of eligible shareholders in taking up additional shares under the shortfall facility. While the outcome of these factors is not able to be ascertained by the Company as at the date of this notice, the likely effect of the Rights Issue would include, but not be limited to:

1

• (i) if all eligible shareholders take up their entitlement under the Rights Issue, the issue of New Shares under the Rights Issue will have no effect on the control of the Company, and all shareholders will hold the same percentage interest in the Company, subject only to changes resulting from ineligible shareholders being unable to participate in the Rights Issue;

• (ii) in the event that there is a shortfall, eligible shareholders who do not subscribe for their full entitlement of New Shares under the Rights Issue and ineligible shareholders unable to participate in the Rights Issue will be diluted relative to those shareholders who subscribe for some or all of their entitlement; and

• (iii) no person will be issued New Shares if such issue would result in their voting power in the Company, in aggregate with the voting power of their associates, increasing from 20% or below to more than 20%, or from a starting point that is above 20% and below 90%.

Richard Tegoni Chairman SECOS Group Limited