SPENDA LIMITED — Capital/Financing Update 2021

Jul 6, 2021

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ASX RELEASE

7 JULY 2021

CIRRALTO SIGNS FIVE-YEAR REFERRAL AGREEMENT WITH MASTERCARD FOR TRADE FINANCE SERVICES

Key Highlights

• Cirralto has signed a five-year Referral Agreement with Mastercard to grow Cirralto’s global payments and cashflow solutions business that are addressable via cross boarder payment processing and export cashflow products.

• 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 customers referred under the agreement further leveraging its revenue generating potential.

• This Agreement builds on the Business Payments Aggregator agreement with Fiserv and Mastercard, as announced by the Company on 14 December 2020.

Cirralto Limited ( ASX: CRO, “Cirralto” or “the Company” ) is pleased to announce that it has signed a five-year Referral Agreement ( “Agreement” ) with Mastercard Asia/Pacific Pte. Ltd, a wholly-owned subsidiary of Mastercard Incorporated ( “Mastercard”, NYSE:MA ).

The Agreement builds on the Business Payments Aggregator ( “BPA” ) agreement with Fiserv ( NASDAQ: FISV ) and Mastercard, as announced by the Company on 14 December 2020, to extend the Company’s Business Payment services offering. The BPA agreement enables Cirralto to process card payments as the merchant of record.

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, Mastercard 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.

Commenting on the Agreement, Adrian Floate, CEO, said “we are very excited to announce that we have signed an agreement with Mastercard, with whom we have developed a very strong relationship between 2020 and 2021.

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“This Agreement serves as a strong validation of what we are doing while also providing us the opportunity to potentially access a significant customer base. The solutions we will provide to Mastercard customers provide the Company with a fantastic opportunity to rapidly scale its business and grow within Australia and abroad.”

While Cirralto’s operations are based in Australia the Company has capabilities to facilitate cross border payments which will be a key focus of the business moving forward.

The Agreement is effective immediately and has a 5-year term with automatic renewal for 1 year after the 5-year term. Either party may terminate the agreement by providing 30 days-notice. As part of this Agreement Cirralto permits Mastercard to use any Company materials in connection with its activities under the Agreement.

This announcement has been authorised by the Board.

• 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