NANOLLOSE LIMITED — Capital/Financing Update 2021

Oct 20, 2021

Proposed issue of securities

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Announcement Summary

Entity name

NANOLLOSE LIMITED

Announcement Type

New announcement

Date of this announcement

21/10/2021

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +security code	+Security description	+securities to be issued
New class-code to be	Unlisted Options - NC6OPT6	1,000,000
confirmed

Proposed +issue date 1/12/2021

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

NANOLLOSE LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

If the +securities are being offered under a +disclosure document or +PDS and are intended to be quoted on ASX, we also apply for quotation of all of the +securities that may be issued under the +disclosure document or +PDS on the terms set out in Appendix 2A of the ASX Listing Rules (on the understanding that once the final number of +securities issued under the +disclosure document or +PDS is known, in accordance with Listing Rule 3.10.3C, we will complete and lodge with ASX an Appendix 2A online form notifying ASX of their issue and applying for their quotation).

1.2 Registered Number Type

ABN

Registration Number

13601676377

1.3 ASX issuer code

NC6

1.4 The announcement is

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New announcement

1.5 Date of this announcement

21/10/2021

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 Do any external approvals need to be obtained or other conditions satisfied before the placement or other type of issue can proceed on an unconditional basis? Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval 26/11/2021 Actual No

Comments

Subject to Shareholder approval, the Company proposes to issue 500,000 Options to Mr Terrence Walsh and 500,000 Options to Mr Winton Willesee. For more information, refer to Resolutions 4 and 5 of the Notice of Annual General Meeting released on ASX on 21 October 2021.

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? New class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? No

Will the entity be seeking quotation of the 'new' class of +securities on ASX? No

ASX +security code

ASX +security code +Security description New class-code to be confirmed Unlisted Options - NC6OPT6

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+Security type

Options

Number of +securities proposed to be issued

1,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

The securities are being issued for nil cash consideration, and are being issued as part of the Directors' remuneration packages.

The valuation per Option noted below is based on a Black and Scholes valuation, which is detailed in the Notice of Annual General Meeting released on the ASX on 21 October 2021.

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

0.050800

Will all the +securities issued in this class rank equally in all respects from their issue date?

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Yes

Options details

+Security currency

AUD - Australian Dollar

Exercise price Expiry date AUD 0.1134 1/12/2024

Details of the type of +security that will be issued if the option is exercised

NC6 : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

One fully paid ordinary share.

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Please refer to Schedule 2 of the Notice of Annual General Meeting released on 21 October 2021.

The exercise price noted above is indicative only and is calculated based on a 35% premium to the closing price of $0.084 on 20 October 2021. The exercise price will be determined by calculating 135% of the VWAP (or a 35% premium) of Shares for the 5 Trading Days on which trades of Shares occurred prior to the Annual General Meeting.

The expiry date noted above is indicative only. The expiry date will be 3 years from the date of issue.

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Part 7C - Timetable

7C.1 Proposed +issue date 1/12/2021 Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? No

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue None.

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Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

The securities the subject of this Appendix 3B are being issued as a component of the Directors' remuneration packages.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

For further information, please refer to the Notice of Annual General Meeting released on the ASX on 21 October 2021.

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