SPACETALK LTD — Capital/Financing Update 2019

Jan 17, 2019

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ASX Announcement

MGM Wireless Limited (ASX:MWR)

18[th] January 2019

SPACETALK GOES TO THE UK

Highlights:

• April 2019 launch date set

• Follows strong interest from UK Retailers and Distributors

• $500K Convertible Note Drawdown to fund expansion

18[th] January 2019 – Technology company MGM Wireless Limited (ASX:MWR) (‘MGM’ or ‘the Company’) today announces a major step forward in our international expansion plans with the launch of our SPACETALK smartwatch in the United Kingdom set for April 2019.

The move follows the successful international launch of SPACETALK in New Zealand in November, where our innovative all-in-one smartwatch-location finder-mobile phone is supported by leading telco, Spark.

“The UK launch is a natural step for SPACETALK,” commented MGM Wireless CEO Mr Mark Fortunatow. “Months of planning, due diligence and research has gone into this exciting move into this major English-language market.”

“With a population of more than 66 million people, the UK market is approximately three times the size of our home markets of Australia and New Zealand.”

MGM Wireless executives and potential distributors have been negotiating the UK launch for many months. This announcement caps off a successful visit to bricks and mortar retailers in November and interest generated by showcasing SPACETALK at the Mobile World 2018 conference in Barcelona last year. SPACETALK will have a highly visible presence at Mobile World 2019 next month, a

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conference attended daily by more than 100,000 mobile executives and buyers over the last week of February.

“SPACETALK will be available on the UK high Streets in the northern spring retail season, in the lead up to school holidays where the versatility of our all-in-one smartwatch mobile phone will come into its own, just as it has this summer in Australia and New Zealand,” Mr Fortunatow said.

MGM Wireless will drawdown a further $500,000 of its existing $2m convertible note funding facility to finance the inventory build to support the UK launch. The facility has been drawn to $1m as at today.

“At this stage it is too early to say with absolute confidence what our sales expectations are,” Mr Fortunatow said. “However, our first year Australian and New Zealand sales have exceeded expectations and we have been impressed by the enthusiasm and support expressed by UK retailers and distributors.”

“The children’s smartwatch product is better known among UK parents than it was here. We feel we have an advantage in terms of quality, customer service in the aftermarket and a secure SPACETALK app, which really appeals to the UK market.”

“UK parents face the same social issues with kids access to mobile devices and cyber bullying that we face in Australia. SPACETALK has the solution to keeping busy parents in touch with children without the need of a mobile smartphone with access to all kinds of social media and the internet.”

MGM Wireless will make further announcements about UK retail partners over the coming months. SPACETALK is available in JB HiFi and Leading Edge stores in Australia and through Spark’s retail store network in New Zealand. Online sales are available through www.spacetalkwatch.com.

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ABOUT MGM Wireless

MGM Wireless Limited is a technology company designing, developing and commercialising a smartphone + watch wearables devices for children, and software for school communication and student absence management. The Company’s AllMyTribe division has developed a children’s all-in-one smartphone, watch and GPS device called SPACETALK, which allows two-way 3G phone calls and SMS messaging to a parent-controlled list of contacts. Other features include GPS tracking to alert parents whenever children leave designated safe spaces, such as school or the home.

Importantly – a key safety feature of SPACETALK is that it doesn’t give children access to social media, apps, open internet, YouTube or other such services dangerous to young children. In addition, during school hours, the device can operate in ‘School Mode’ whereby all communication features are disabled to ensure children won’t be distracted.

MGM Wireless built its track record with school communication solutions after discovering in 2002 the application of SMS communication in schools. The Company went on to create the world’s first SMS based Automated Student Absence Notification Solution and many other innovations since then. It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communication.

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’.

Used by over 1400 schools and 1.7 million parents, the Company’s school communication solutions empower schools to effectively communicate and engage 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. To learn more please visit: www.mgmwireless.com

www.mgmwireless.com

For more information please contact:

MGM Wireless Limited

Megan Coleman – Executive Assistant to CEO

mcoleman@mgmwireless.com M: +61 407 215 292

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