SKS TECHNOLOGIES GROUP LIMITED — Capital/Financing Update 2021

Mar 31, 2021

1 April 2021

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ASX Release

Completion of Acquisition of APEC Technologies Group

Further to the Company’s announcement of 5 March 2021, SKS Technologies Group Limited (ASX: SKS) is pleased to announce that it has today completed the acquisition of the business and assets of the APEC Technologies Group. While completion of the transaction has taken place, there are certain administrative matters which remain outstanding. It is expected that these will be completed in the near future following which the share consideration for the acquisition will be issued to the vendors.

As previously announced, the consideration for the acquisition is the issue of $2 million (subject to the work in progress adjustments) in SKS shares to the vendors, calculated at a 20% discount to the 10-day volume weighted average price, ending five days before the completion of the sale. Half of the shares will be held in voluntary escrow for a period of 12 months from completion and the balance for a period of 24 months.

The transaction will see SKS achieve an expected annualised revenue in excess of $50 million and will reach a combined work in hand position of greater than $20 million. The completion of the transaction marks an important milestone as it allows SKS to forge a new future; a future that is built around the convergence of AV and IT to better connect offices and workers post COVID-19, and a platform to leverage and build longterm recurring revenue from its existing client base, and one that we believe will generate future shareholder value.

The Board would like to thank the employees of APEC Technologies Group for their continued loyalty as SKS takes the business forward. The acquired business will be re-branded to SKS Technologies.

SKS Chief Executive Officer, Matthew Jinks, said “We’re pleased to have completed the acquisition of APEC Technologies Group, and we look forward to welcoming their employees, integrating their operations and serving their customers. The transaction will significantly expand our market penetration, and further consolidate our position as a leader in the market for the provision of converged AV/IT networks, electrical and communication solutions for the commercial, industrial and infrastructure sector nationally.”

Mr Jinks continued, “The acquisition reinforces our strategic focus of growing the brand, expanding our services and driving scale, and we expect it to deliver long-term value to SKS’ customers and shareholders.”

ENDS ~

Approved for release by the Board of SKS Technologies Group

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Further Information Peter Jinks Executive Chairman (03) 9289 5000 Matthew Jinks Chief Executive Officer (03) 9289 5000	Further Information Peter Jinks Executive Chairman (03) 9289 5000 Matthew Jinks Chief Executive Officer (03) 9289 5000	Further Information Peter Jinks Executive Chairman (03) 9289 5000 Matthew Jinks Chief Executive Officer (03) 9289 5000
Further Information	Peter Jinks Executive Chairman (03) 9289 5000	Matthew Jinks Chief Executive Officer (03) 9289 5000

SKS Technologies delivers advanced technology through digital transformation via creative design and installation of converged AV/IT, electrical and communication networking solutions nationally.

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