SPACETALK LTD — Capital/Financing Update 2023

Dec 13, 2023

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ASX Announcement/Press Release | 14 December 2023 Spacetalk Limited (ASX:SPA)

Spacetalk Mobile introduces a full range of handset and wearable plans

Another stage in Spacetalk’s plan to create a connected ecosystem of family safety products and services has been delivered

Investment highlights

• Spacetalk is expanding its Mobile Virtual Network Operator (MVNO) offering to service the whole family with a full range of plans suitable not just for Spacetalk wearables but also 4G and 5G handsets.

• New SIM only plans are backed by the Telstra Wholesale Network, providing reliable connectivity for every stage of a family’s life.

• Delivering on Spacetalk’s strategic objective of connecting the whole family with its mobile plans and expands the company’s addressable market substantially.

• The Company believes this is a key part of the transformation of the business leading to increasing recurring revenue, stabilisation of the business and future profitable operations.

• Spacetalk’s existing wearables plans have been updated to offer greater customer value and make long expiry, higher revenue products more attractive.

• The new handset plans address a previous weakness whereby the customer was lost once the Spacetalk watch was retired, the company now is able to transition kids’ from wearables to their first smartphones.

• In addition to data banking today, in the near future handset plans will allow data gifting, which will give parents the power to ensure their children never run out of data and are never out of contact

• Spacetalk expects to offer eSIMs to its customers in coming months.

Spacetalk Limited (ASX:SPA) (“Spacetalk” or “the Company”) is pleased to announce the introduction of (1) new handset plans and (2) an updated range of wearable plans that together provide reliable connectivity for safety at every stage of a family’s life utilising the Telstra Wholesale Network.

The launch of these new Spacetalk Mobile handset plans delivers on Spacetalk’s strategic objective of launching new family-focused Mobile Virtual Network Operator (MVNO) plans. They align with the Company’s stated mission, which is to ensure Family Safety by providing an Ecosystem of Products that enable Freedom and create Peace of Mind.

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Newly released plans for wearables and handsets are competitively priced

The new Spacetalk Mobile handset plans that substantially increase Spacetalk’s addressable market and are structured to ensure that they are competitively priced and aligned to customer’s individual needs.

Handset plans also have non-price competitive advantages

These plans provide a pathway for Spacetalk to retain customers as they ‘age out’ of their kids’ wearables devices and start to use their first smartphone.

Spacetalk customers will also soon be able to bundle multiple Spacetalk Mobile plans to gain free access to Spacetalk’s Family App (see ASX announcement dated 11 October 2023) and maintain the key safety benefits of a Spacetalk watch in virtual form, on any smartphone.

Continuity of mobile number is facilitated by the simply transferring the existing SIM card from a Spacetalk watch to a child’s first smartphone.

Spacetalk Chief Executive Officer and Managing Director Simon Crowther, said:

“The launch of our Spacetalk Mobile 4G and 5G handset plans means that another important component of our stated plan to create a connected family safety product ecosystem has been delivered. The Spacetalk Family App in combination with these new mobile plans will allow customers to maintain the key safety benefits of the Company’s kids’ wearable devices as they transition to using their first mobile phone. A key added advantage is that users can keep their existing phone number by simply taking the SIM card from their Spacetalk watch and placing it into their phone.

From a business sustainability perspective, these new and revised handset plans are expected to help the Company retain users as Spacetalk Mobile subscribers, which will lead to growth of both our subscriber base and revenues. Looking ahead, the flow of new product releases is set to continue over coming months, all of which will align with our stated strategy of creating a connected ecosystem of family safety products and services.”

For further information, please contact:

Spacetalk Limited (ASX:SPA) Media & Investor Enquiries Simon Crowther The Capital Network CEO and Managing Director Julia Maguire T: 1300 087 423 P: +61 2 8999 3699 E: julia@thecapitalnetwork.com.au

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About Spacetalk Limited (ASX:SPA)

Spacetalk Limited (ASX:SPA) is a software services and smartwatch hardware product developer. As a package, the company’s technology platform provides a complete digital communication solution that supports safety and security for families across their life stages and for employees working in remote settings. The company’s unique proprietary ecosystem, which has continued to evolve over time, is today recognised as a leader in family safety and the connected wearables industry.

The Spacetalk technology platform comprises both market-leading hardware and a trusted, clientcontrolled software platform that provides safety and security to users via the benefits of mobile technology.

The multi-functional Software-as-a-Service Spacetalk App can be customised, giving clients the ability to enable or disable individual features. Parents are empowered to block their child's access to the open internet, social media and inappropriate adult content while simultaneously blocking calls and messages from unknown senders. The app can also track the location of vulnerable family members, including kids and seniors requiring constant monitoring.

Spacetalk’s best-in-class software platform additionally supports kids development by facilitating engaging, confidence-building experiences that the whole family can participate in and enjoy.

Spacetalk’s core hardware, its smartphone-watch, is effectively a kids first mobile phone. It offers all the benefits of a smartphone, operating on a secure, private and parent-controlled ecosystem that can be customised to reflect each family’s needs and values.

To learn more, please visit: www.spacetalk.co/

For more information

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This ASX announcement has been authorised by the Board of Spacetalk Limited (ASX:SPA)

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