SPECTUR LIMITED — Capital/Financing Update 2021

May 13, 2021

ASX Announcement

Spectur Executes Final Documentation on $1.5 Million Loan Facility

Friday 14 May 2021: Solar security, sensing and visual AI solutions and platforms company Spectur Limited (ASX: SP3) (Spectur or the Company) is pleased to announce that it today executed final documentation on the A$1.5 million loan facility (Facility) with EGP Capital (Lender) which was announced on 27 April 2021.

This loan facility will support short to medium term capital requirements required to deliver current and forecast revenue growth whilst maintaining adequate cash reserves.

Spectur Managing Director, Gerard Dyson, said:

"We are pleased to finalise this facility, which removes any need for Spectur to raise equity capital for working capital purposes whilst enhancing the Company's balance sheet flexibility in the medium term. Investments in the last 12 to 18 months are bearing fruit as planned, and we will continue to execute our organic growth strategy from a newly-strengthened platform.

"Spectur continues to review strategic opportunities, including acquisitions, which could require additional combinations of equity and/or debt. Whilst we have evaluated a number of potential targets over the past 18 months, the strategic, cultural and financial constraints that we have assigned to this process has meant that we continue to search. We will only request and deploy additional capital where we believe there is a strategic synergy, the cultural fit is right and the price delivers an appropriate risk-balanced return on equity for our shareholders."

Material Terms of the Facility

• Draw down of up to A$1.5 million. Drawdowns at the election of the borrower, to be in minimum amounts of $100,000 and multiples of $50,000 with 30 days' notice.

• No security Negative pledge obligation only;

• Fixed interest rate of 7.0% p.a. on drawn amounts;

• Line fee of 3% p.a. on total value of facility, effective 1 July 2021;

• 30-month term, with flexibility to repay at an earlier date;

• the Company will issue the following options to the Lender, subject to approval by shareholders at the Company's Annual General Meeting:

  • o 2.25 million unquoted options to acquire fully paid ordinary shares in Spectur, exercisable at $0.12, on or before 31 December 2023. Should shareholder approval not be obtained, the outstanding loan principal and any fees / interest outstanding will be repaid within 45 days.

• Financial Covenants At all times, the amount of the drawn Facility is not to exceed the aggregate of:

• o Spectur's cash at bank;

• o 50% of Spectur's < 90 day debtors;

• o 50% of the value of Spectur's rental fleet and finished stock; and

• o 50% of the value of Spectur's other inventory.

Spectur is to report to the financier on these matters for each month by the 21st day of the following month.

• Repayment election Subject to obtaining the necessary shareholder approvals, if required, Spectur may, at its election, elect to repay all or part (in multiples of $100,000) of outstanding amount under the Facility in the form of fully paid ordinary shares in lieu of cash. Each share will be issued at a 20% discount to the 30-day volume-weighted average price of Spectur shares traded on ASX leading up to the repayment date.
• In addition, the transaction documents are subject to warranties, indemnities, fees, default fees and terms which the Company considers usual for a transaction of this size and scope.

About EGP Capital

EGP Capital is a Sydney based private investment company with an unconstrained investment mandate that currently focuses its investments in Australian listed businesses. Formerly known as Eternal Growth Partners, EGP Capital was established in 2011. EGP Capital is a shareholder in Spectur Limited and currently holds 3.8% of its share capital.

Ends.

This ASX release is authorised by the Board of Directors of Spectur Limited

For further information, please contact:

Corporate enquiries

Spectur Limited Gerard Dyson p: +61 (08) 9414 9059 e: investors@spectur.com.au

About Spectur Limited

Spectur Limited (ASX: SP3 – www.spectur.com.au) is an Australian-based developer of security, surveillance and warning solutions powered by solar, IoT [Internet of Things], camera and cloud-based technology. The Company owns the rights to its innovative hardware and disruptive cloud-based systems which are deployed to provide solutions to industries including government and utilities, and the building, construction and civil sector.

Spectur's core products are solar powered warning, deterrence and surveillance systems and associated cloud-based platforms. These systems incorporate cameras, lighting, audible warnings and a hardware IoT platform, remotely accessed and connected via 3G/4G technology to a cloud-based platform. The offering is complemented by a longer distance, 24-hour thermal camera deterrence solution, suitable for customers with long perimeters.

Spectur is used and trusted by small business to multinationals and the Company is currently implementing a strategic growth plan to build market dominance in the Australian government and utilities sector to meet demand for innovative, remote camera and IoT solutions.