SPACETALK LTD — Capital/Financing Update 2023

Dec 12, 2023

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ASX Announcement/Press Release | 13 December 2023 Spacetalk Limited (ASX: SPA)

Spacetalk enters New Zealand’s retail market-place – supplementary announcement.

Additional information on Spacetalk’s recently signed partnership agreement with New Zealand-based retailer, The Warehouse Group NZ demonstrates its immediate scale.

Investment highlights

• Spacetalk recently signed a partnership agreement with New Zealand-based retailer, The Warehouse Group NZ (see ASX announcement dated 7 December 2023)

• Under the agreement, Spacetalk products have been sent from the Company’s Australia-based warehouse direct to The Warehouse Group NZ distribution centres

• The first consignment of nearly 1,000 Spacetalk watches is currently in Auckland customs and is in transit to The Warehouse Group NZ distribution centres

• Under the terms of the agreement, The Warehouse Group NZ have exclusivity to Spacetalk products for a period of 12 months

• Spacetalk’s total Australasian addressable market has been increased by around 17% on the back of its move into the NZ retail market.

Spacetalk Limited (ASX: SPA) (“Spacetalk” or “the Company”) is pleased to provide further information on the partnership agreement it recently signed with New Zealand-based retailer, The Warehouse Group NZ (see ASX announcement dated 7 December 2023).

Under the terms of this agreement, Spacetalk’s Adventurer 2 and Spacetalk Loop smartwatch products will, for the first time, be offered in The Warehouse Group NZ’s extensive network of Noel Leeming and The Warehouse Stores.

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Key metrics demonstrate the scale of this new NZ retailer sales channel

The following supplementary information on Spacetalk’s recently signed partnership agreement with New Zealand-based retailer, The Warehouse Group NZ, provides investors with more details on this wide-ranging agreement. As a package, this supplementary information highlights the potential upside it provides to the Company’s revenue base.

• How the partnership works: It is a traditional supplier/retailer partnership. The Spacetalk products are supplied from the Company’s Australia-based warehouse and sent direct to The Warehouse Group NZ distribution centres. From there, these Spacetalk products will be transferred to Noel Leeming and The Warehouse Stores across their respective networks. Spacetalk’s agreement with the The Warehouse Group NZ will ensure national compliance and participation in national promotional programmes, with an agreed ranging of watches/accessories across the near 150-strong store network.

• The quantum of Spacetalk stock received by The Warehouse Group NZ: The first consignment of nearly 1,000 Spacetalk watches has cleared Auckland customs and is in transit to The Warehouse Group NZ distribution centres.

• The terms of the agreement: The signed agreement between Spacetalk and The Warehouse Group NZ is ongoing. Under the terms of the current agreement, while Warehouse Group NZ have exclusivity to Spacetalk products for 12 months within the NZ physical retail market, Spacetalk is still able to sell Company products via its own eCommerce platform.

• Spacetalk’s total addressable market is now materially increased: Spacetalk’s watches are designed for children aged between 5-18 years. According to the Australian Bureau of Statistics, this age group currently accounts for around 4.34 million of the total Australian population. With Spacetalk’s move into the New Zealand retail market, the abovementioned addressable market figure has now been materially increased. According to Stats NZ Tatauranga Aotearoa, New Zealanders in Spacetalk’s target age group of 5-18 years number around 0.92 million. Their addition takes Spacetalk’s now expanded Australasian addressable market to nearly 5.3 million.

Spacetalk is not able to quantify the financial impact of this partnership at this time.

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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

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 cycles 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, client-controlled 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 children and seniors requiring constant monitoring.

Spacetalk’s best-in-class software platform additionally supports children’s 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 child’s 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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About The Warehouse Group NZ

The Warehouse Group NZ is one of the largest retailing groups in New Zealand with NZ$3 billion in sales and a workforce of 12,000+ employees. It operates a 260+ retail store network, spread across six core retail brands of The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7, 1-day and TheMarket. It has a commitment to providing better living for all New Zealanders, through sustainable retail products and practices and the vision of being New Zealand's most sustainable, convenient and customer-first retailer.

To learn more about The Warehouse Group please click here: www.thewarehousegroup.co.nz/

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

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