Slovar Limited — Capital/Financing Update 2013

Sep 25, 2013

money3

MONEY3 Corporation Limited First Floor, 40 Graduate Road Bundoora Vic 3083 – Tel: (03) 9093 8255

26 September 2013

ASX Limited
Exchange Centre
20 Bridge Road
Sydney NSW 2000

Dear Sir

Money3 Doubles Branch Network

The Directors of Money3 Corporation Limited (“Money3” ASX: MNY) are pleased to announce a series of transactions that both expands Money3’s branch network and provides a broader platform to accelerate earnings growth. Specifically:

• Money3 have secured the rights to 41 stores across the east coast of Australia from the administrators of The Cash Store Pty Ltd (Cash Store).
• Money3 has secured a deal with Assistive Finance Australia Pty Ltd (Assistive) to collect the outstanding loan book.
• Money3 has gained the Cash Store and Assistive customer database that has in excess of 30,000 customers of which 16,000 have loans introduced by Cash Store.

Money3 CEO Rob Bryant said “Money3 is committed to leading the transformation of the consumer lending industry in Australia and Money3 intends to be the responsible lender of choice to the millions of Australians who are unable to access traditional credit. This transaction is extremely beneficial to Money3 and its growth and already the new stores are writing loan business. As part of the deal Money3 is not taking on liabilities of either Cash Store or Assistive”

Money3 Branch Network expansion

Money3 has been actively looking to expand its branch footprint, particularly in New South Wales and Queensland and with these branches our expansion plan is ahead of schedule. Securing the rights to 41 new stores across the east coast of Australia not only doubles Money3’s branch networks but provides a broader geographic coverage in key focus areas for the business.

Money3 will rebrand all stores as Money3 and will have a national footprint of in excess of 70 stores across Australia. The Cash Store had a single product offering and the significant opportunity of this transaction is for Money3 to roll out all of its existing products across the new stores in the short term. These products will enable customers to access cash for a longer period with lower

MONEY3 Corporation Limited
ABN: 63 117 296 143
Registered Office: Level 1, 48 High St. Northcote, Vic 3070

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money3

MONEY3 Corporation Limited First Floor, 40 Graduate Road Bundoora Vic 3083 – Tel: (03) 9093 8255

repayments. The funding for this product roll out is more than adequately covered by the recent capital raising.

The enlarged network will position Money3 well leading into the strong December sales period.

Assistive Loan Book Collection

Cash Store was a broker branch network and offered loans funded by Assistive Finance Australia Pty Ltd (Assistive). Money3 has secured a deal with Assistive to collect the outstanding loan book. Money3 will charge Assistive 50% of all funds collected for a period of six months, after which Money3 will take an equitable assignment of the book at nil cost. The loan book consists of a current book of $2.5M and a slow book of $7.0M (currently collecting in excess of $80k per month).

The funds received from collecting the loan book is expected to make this deal cash neutral. Money3 has budgeted $2.5M to fund the loan book associated with the new stores. Money3 expects the majority of new stores to be profitable in the second half of FY14.

Customer Database

The Cash Store and Assistive database has in excess of 30,000 customers of which 16,000 have loans introduced by Cash Store. Money3 expects that a significant proportion of the customers will be new to Money3 and therefore create further opportunities to expand Money3's earnings by offering Money3's products and services.

Should you have any queries or require clarification please call me on 03 9093 8245.

Craig Harris
CFO & Company Secretary
Money3 Corporation Limited

MONEY3 Corporation Limited
ABN: 63 117 296 143
Registered Office: Level 1, 48 High St. Northcote, Vic 3070