MYSTATE LIMITED — Capital/Financing Update 2020

Feb 27, 2020

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ASX release

28 February 2020

MyState announces $7m underwrite of Dividend Reinvestment Plan

Friday, 28 February 2020 : MyState Limited (ASX:MYS), the Tasmania based banking and wealth management group today announced that the company’s Dividend Reinvestment Plan (DRP) for the FY2020 interim dividend will be partially underwritten.

Bell Potter Securities Limited (ABN 25 006 390 772 ) has been appointed lead manager and underwriter of the DRP (Underwriter), and will underwrite the shortfall of the DRP up to a maximum of $7 million, should the shortfall exceed that amount. Based on historical DRP participation rates, MyState expects to raise $9 million to $10 million in total.

The DRP applies to the 14.25 cents per share interim dividend declared for the half year ended 31 December 2019. The price of the shares to be issued under the DRP will be set at a 2.5% discount to the volume weighted average price of MyState shares calculated over the 10 trading days between 9 March 2020 and 20 March 2020 (inclusive).

The funds raised will be used to support the balance sheet growth of MyState. At its half year results announcement, MyState reported a strong regulatory capital position and foreshadowed that the company was continuing to explore a range of alternatives to further improve balance sheet efficiency. Momentum in home loan applications towards the end of the first half has continued in the early part of 2020. MyState has determined that it is prudent to raise additional capital to support loan growth while leaving other options open to continue to grow the business.

A summary of the key terms of the underwriting agreement is provided under Annexure A to this announcement in accordance with ASX Listing Rule 3.10.9.

As previously announced, shareholders will have until 5:00pm AEDT, Tuesday 3 March 2020 to elect to participate in the DRP. Prior elections by shareholders to participate in the DRP will apply to this interim dividend unless amended or terminated. Elections can be made, amended or terminated online at www.investorcentre.com by 5:00pm, Tuesday 3 March 2020. Election forms may also be obtained from Computershare on 1300 850 505. A copy of the DRP rules may be viewed on the Investor Tools webpage on MyState's website at www.mystatelimited.com.au.

Key dates in respect of the DRP are as follows:

Announcement of DRP	Friday, 21 February 2020
Ex-dividend date	Friday, 28 February 2020
Interim dividend record date	Monday, 2 March 2020

Deadline for shareholder participation in the DRP	5:00pm Tuesday, 3 March 2020
DRP pricing period	Monday, 9 March 2020 - Friday, 20 March 2020
Dividend payment, retail DRP shares allotment date and DRP shortfall shares allotment date	12:00pm Wednesday, 15 April 2020
Retail DRP shares & DRP shortfall shares commence trading	Thursday, 16 April 2020

Authorised

Melos Sulicich Managing Director and CEO

About MyState Limited

Registered Office: 137 Harrington Street, Hobart 7000

MyState Limited is the ASX-listed (MYS) non-operating holding company of the diversified financial services Group consisting of MyState Bank and TPT Wealth, a trustee and wealth management company. MyState Bank is regulated by the Australian Prudential Regulatory Authority. MyState Bank and TPT Wealth hold Australian Financial Services Licences issued by the Australian Securities and Investments Commission.

Media Enquiries

Ashley Rambukwella, Financial & Corporate Relations, 0407 231 282 and a.rambukwella@fcr.com.au

Investor Enquiries

Gary Dickson, Chief Financial Officer, 0417 378 847 and gary.dickson@mystatelimited.com.au

Annexure A - Details of underwriting agreement (ASX Listing Rule 3.10.9)

Name of the underwriter

Extent of the underwriting

Fee, commission or other consideration payable to the underwriter

Summary of significant events that could lead to the underwriting being terminated

Bell Potter Securities Limited Partially underwritten up to $7 million

3% of $7 million

Events	that could trigger a right to terminate
include:
•	breach of the underwriting
	agreement by MyState;
•	the S&P/ASX 200 index falling by
	10% or more and remains at that
	level for more than 2 consecutive
	days;
•	regulatory action with respect to
	MyState;
•	a change of control event whereby a
	person will acquire more than 50%
	of the issued share capital in
	MyState;
•	material hostilities and financial
	market disruptions not presently
	existing in the world;
•	non-compliance with the DRP rules
	or any applicable law.