SPACETALK LTD — Capital/Financing Update 2017

Oct 9, 2017

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ASX Announcement

MGM Wireless Limited (ASX:MWR)

Tuesday 10 October, 2017

MGM Wireless Issues Shares Under Entitlement Offer

Highlights

• MGM to issue shares under the recent Entitlement Offer

• Funds raised by the Entitlement Offer are being used for launched-related activities for Spacetalk, MGM’s first hardware device

• Spacetalk is an innovative new wearable device for children

• MGM thanks all shareholders who accepted the Entitlement Offer and regrets not being able to accommodate those who wished to invest over and above their entitlement

• MGM closed the Entitlement Offer successfully raising approximately $290,000

Tuesday 10 October, 2017 - Technology company MGM Wireless Limited (ASX:MWR) (‘MGM’ or ‘the Company’) is pleased to announce the issuing of shares under the recent Entitlement Offer (the Offer) [ASX Announcement 30 August, 2017].

MGM would like to take this opportunity to thank all the shareholders who accepted the Offer and supported the Company’s move into hardware. Proceeds of the Offer will go towards launch-related activities of Spacetalk, MGM’s innovative new wearable device for children.

MGM is pleased to look after the interests of existing shareholders as the Offer was not for new shares but for existing shareholders only. The Offer allowed shareholders to increase their investment in the Company at a discounted price, prior to the launch of Spacetalk which is expected to generate significant growth in revenue.

MGM regrets not being able to accommodate the request of many shareholders who contacted the Company wishing to invest over and above their entitlement. The Company closed the Offer at the end of September [ASX Announcement 29 September, 2017] successfully raising approximately $290,000. The Company issued 487,230 fully paid ordinary shares to applicants under the Offer and 350,000 fully paid ordinary shares to the underwriter pursuant to an underwriting agreement. Details of the issue to the underwriter are included in Appendix 3Y released to the market on 9 October 2017.

MGM Wireless Co-Founder, Chairman & CEO Mark Fortunatow: “ MGM is a company with about 10 million shares and an enterprise value of less than $4 million but an EBITDA of over $0.7m from our existing business. We have no debt, about $1 million in cash and a solid, a well-established school business with a long track record of profitability that’s underpinning our expansion into Internet of Things (IoT) and wearables. Over the last three years we’ve used our cash flow to fully fund the enormous undertaking of developing and manufacturing ‘Spacetalk’, an innovative new childrens wearable. We’d like to thank all the shareholders who have supported our move into hardware and we look forward to delivering them returns.

Ends

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For more information please contact:

MGM Wireless Limited

Media Enquiries

Mark Fortunatow

Julia Maguire

CEO Director mfortunatow@mgmwireless.com julia@thecapitalnetwork.com.au M: +61 421 328 984 +61 419 815 386

About MGM Wireless

MGM Wireless Limited (ASX:MWR) is a technology company designing, developing and commercialising Internet of Things (IoT) devices for children, and software for school communication and student absence management. The Company’s AllMyTribe division has developed a wearable device called Spacetalk which allows two-way 3G communication, GPS tracking and alerts parents whenever children leave designated safe spaces such as school or the home.

MGM Wireless built its track record with school communication solutions after creating the world’s first SMS based Automated Student Absence Notification Solution. It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communications. Used by over 1,100 schools and 1.6 million parents, the Company’s multichannel school communication solutions empower schools to effectively communicate to parents and caregivers through SMS, mobile in-app and other means to improve student attendance and safety, help schools reduce operating costs and increase parent engagement.

MGM Wireless products include student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called Outreach+, and student attendance management solution ‘RollMarker’.

To learn more please visit: www.mgmwireless.com