SPENDA LIMITED — Capital/Financing Update 2021

Jul 7, 2021

08 JULY 2021

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ASX RELEASE

CIRRALTO SIGNS FIVE-YEAR REFERRAL AGREEMENT WITH FRESH SUPPLY CO FOR TRADE FINANCE SERVICES

Key Highlights

• Cirralto has signed a five-year Referral Agreement with Fresh Supply Co. Pty Ltd to grow Cirralto’s global payments and cashflow solutions business that is addressable via cross border payment processing and export cashflow products.

• Collectively Cirralto and Fresh Supply Co will tackle the agricultural business sector through Fresh Supply Co’s customer network.

• In conjunction with Invigo, Cirralto will provide trade finance solutions and integration services to business customers, in addition to merchant on record payment services via existing arrangements.

• Cirralto will provide its payments processing services to the Agricultural Businesses (the customers referred under the Agreement) to further leverage its revenue generating potential.

• Providing the agricultural industry access to trade finance reduces the risk of non-payment and improves efficiency and cash flow for both the buyer and seller and enables farmers to get paid when specific milestones are met in the paddock-to-plate supply chain.

• Cirralto will provide its payments processing services to the customers referred under the agreement further leveraging its revenue generating potential.

• Fresh Supply Co will provide ongoing sales referrals and actively develop business opportunities with and for Cirralto to offer its services.

Cirralto Limited ( ASX: CRO, “Cirralto” or “the Company” ) is pleased to announce that it has signed a five-year non-exclusive Referral Agreement (“ Agreement” ) with Fresh Supply Co Pty Ltd ( “Fresh Supply Co” ).

Under the terms of the Agreement, Fresh Supply Co may introduce joint customers to Cirralto through sales referrals and business opportunities.

Headquartered in Brisbane, Australia and founded in 2017 by Dr. Benjamin Lyons and David Inderias, Fresh Supply Co operates in several countries including Australia, Japan, USA, Latin America, and Europe. Its executive team consists of CEO, David Inderias, and COO Georgie Uppington who has several decades global experience in technology management.

Fresh Supply Co has gone through the SproutX Accelerator, with pre-seed funding from Artesian Venture Capital, and subsequent seed round raised by prominent regional angel investors. All team members are based in Australia and New Zealand.

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Fresh Supply Co acts as a data layer specialising in capturing operational farming data from a variety of sources and making it consumable by the financial sector. The ongoing data flow is visible through Fresh Supply Co’s technology and enables continuous credit risk assessment, minimisation of exposure, and automated triggering of payments based on the meeting of specific milestones or criteria.

Combining this data mining technology with Cirralto's established Business to Business ( “B2B” ) Payment Solutions and trade finance services enables B2B transactions with a reduced risk of nonpayment, improved efficiency and cash flow for the customer.

Specific to the agricultural industry, this Agreement will enable Fresh Supply Co’s network of over 20 livestock, grain, fruit and vegetable farmers the ability to utilise Cirralto’s flexible payment solutions and access finance at a better rate. The companies are currently working on a strong pipeline of opportunities in payments and non-bank lending presenting a material revenue generating opportunity for Cirralto.

The customer solutions provided by Cirralto will be at varying rates, dependent on the product being offered and the specific customer circumstances. Under the terms of the Agreement, Fresh Supply Co may introduce potential sales leads and business opportunities to Cirralto and will receive a trade facilitation fee for each successfully on boarded customer. Cirralto will retain at least 70% of the gross profit margin on each customer contract.

In addition to the interest rate returns for trade finance products received by Cirralto, the Company will provide its payments processing capabilities across the same customer base to administer the issuing and collection of debt provided to customers, leveraging and diversifying its revenue generating potential.

Combining trade finance services to be delivered post acquisition by Invigo (see ASX announcement dated 5 July 2021) on top of Cirralto's established Business to Business ( “B2B” ) Payment Solutions is an important tool for B2B transactions, as it reduces the risk of non-payment and improves efficiency and cash flow across the supply chain.

The Agreement has a five-year term with automatic renewal for one-year after the expiration of this Agreement and is effectively immediately. Either party may terminate the Agreement by providing 30 days’ notice. As part of this Agreement Cirralto permits Fresh Supply Co to use any Company materials in connection with its activities under the Agreement.

Commenting on the partnership, Adrian Floate, CEO of Cirralto, said “Working with Fresh Supply Co to help Aussie farmers is very humbling. By utilising our flexible payment solutions and the data mining technology intrinsic in Fresh Supply Co’s business, we are able to positively impact Australia’s Agricultural industry to drive improved cash flow and better business growth for those businesses.

“Data like animal health, weight, age and fat score are part of the animal specification that forms material terms of an agricultural sales contract. Fresh Supply Co are constantly gathering this data from all sorts of data point and creating a digital feed that enables a farmer to demonstrate to a buyer and us as a non-bank lender that are complying with a sales contract. Fresh Supply Co gives visibility

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into the farming process which means we can reward a farmer for achieving their contract targets with faster payment and lower cost finance. “

David Inderias, co-founder and CEO of Fresh Supply Co, said “as a supply-chain digitisation company we’ve been working to provide the agricultural business with transparency across the supply chain. This Agreement combines the collective knowledge and resources of both parties to facilitate better access to working capital for the agriculture business.”

Authorised by Adrian Floate, Managing Director.

• ENDS -

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About Cirralto

Cirralto Limited (ASX: CRO) is a transaction services business supplying industries with a broad range of B2B payment services, digital trading software and integrated solutions. Our goal is to convert EFT payments to card payments utilising the BPSP engagement coupled with our payments collaboration framework. Our competitive advantages deliver customers end-to-end e-invoicing integration, rapid ordering, digital trust and automated reconciliation.

Cirralto supplies its customers a recipe of integrated software to create a vertical market standard operating environment (SOE) that enables the effective and seamless transfer of data from multiple, disparate software systems in one standardised technology solution, such as SpendaRetail. Cirralto has licensing agreements with third-party software vendors that enable it to provide integrated SOE solutions to its customers.

For investors seeking information on the Company’s activities that relate to marketing, customer events and other acknowledgement of customer activities, this information will be posted to the Company’s news section of the website and on social media channels with the handle #getSpenda, active on Twitter, LinkedIn, Instagram and FaceBook.

For more information, see https://www.cirralto.com.au/

This announcement has been authorised by the Board.

Investor Enquiries

Please email: shareholders@cirralto.com.au