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SPRINTEX LIMITED Capital/Financing Update 2015

Feb 23, 2015

65799_rns_2015-02-23_43e33282-fa50-4eb1-85ca-78ee2110a8f8.pdf

Capital/Financing Update

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SPRINTEX LIMITED ABN: 38 106 337 599

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24 February 2015

Dear Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE – NOTIFICATION TO ELIGIBLE SHAREHOLDERS

On 24 February 2015, Sprintex Limited ( Company ) announced a capital raising comprised of a partially underwritten, non-renounceable rights issue ( Rights Issue Offer ) of three (3) fully paid ordinary shares ( New Shares ) for every five (5) existing shares held as at 5.00pm (WST) on 3 March 2015 ( Record Date ) to shareholders with a registered address in Australia or New Zealand ( Eligible Shareholders ) to raise approximately $2.77 million (before costs).

A prospectus in relation to the Rights Issue Offer was lodged with the Australian Securities and Investments Commission ( ASIC ) and ASX on 24 February 2015 ( Prospectus ) and will be mailed to Eligible Shareholders in accordance with the timetable below.

Details of the Rights Issue Offer

Pursuant to the Rights Issue Offer, the Company will issue approximately 1,385,481,273 New Shares at an issue price of $0.002 per New Share to raise approximately $2.77 million before costs.

The Rights Issue Offer is partially underwritten by China Automotive Holdings Limited ( Underwriter ) up to 703,546,342 New Shares.

The New Shares will rank equally in all respects with the Company’s existing shares. The Company will apply to the ASX for quotation of the New Shares.

Shareholders who choose not to take up their entitlement will receive no value in respect of their entitlement and their shareholding in the Company will be diluted.

Use of funds

The Company intends to apply the proceeds from the Rights Issue Offer together with the Company’s existing cash reserves for the following purposes:

  • (a) the expansion and further development of the Company’s core product, Sprintex Superchargers;

  • (b) the expansion and further development of the North American and Asian markets for its product;

  • (c) for general working capital purposes; and

  • (d) to fund expenses of the Rights Issue Offer.

Timetables

The Company expects the Rights Issue Offer to be conducted in accordance with the following timetable:

Event Date
Lodgment date 24 February 2015
“Ex” date 27 February 2015

183 Mulgul Road, Malaga WA 6090 PO Box 3348 Malaga DC WA 6945 Phone: +61 8 9262 7277 Fax: +61 8 9262 7288 Email: [email protected] URL: www.sprintex.com.au

SPRINTEX LIMITED ABN: 38 106 337 599

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Record date to determine entitlements for the Offer 3 March 2015
Prospectus with entitlement and acceptance form dispatched 6 March 2015
Rights Issue Offer opens for receipt of applications 6 March 2015
Closing date for acceptances 5pm WST on 9 April 2015
New Shares quoted on a deferred settlement basis 10 April 2015
Notify ASX of under subscriptions 14 April 2015
Allotment and issue of New Shares 16 April 2015
Dispatch of holding statements for New Shares 16 April 2015
Normal trading of New Shares commences on the ASX 17 April 2015

* The timetable is indicative only and subject to change. The Company reserves the right, subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules, to amend the above dates.

Capital Structure

A comparative table of changes in the capital structure of the Company as a consequence of the capital raising is set out below.

Shares Full Subscription Underwritten
Amount
Shares on issue as at the date of the Prospectus 2,309,135,458 2,309,135,458
New Shares to be issued pursuant to the Rights 1,385,481,273 703,546,342
Issue Offer
Total issued Shares 3,694,616,731 3,012,681,800

The Company currently has 3,750,000 performance rights on issue, as set out below. The number of performance rights on issue will not change under the Rights Issue Offer. The performance rights will not vest prior to the close of the Rights Issue Offer.

Performance rights
Class B performance rights 1,250,000
Class C performance rights 1,250,000
Class D performance rights 1,250,000
Total issued performance rights 3,750,000

183 Mulgul Road, Malaga WA 6090 PO Box 3348 Malaga DC WA 6945 Phone: +61 8 9262 7277 Fax: +61 8 9262 7288 Email: [email protected] URL: www.sprintex.com.au

SPRINTEX LIMITED ABN: 38 106 337 599

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Eligible Shareholders will receive a copy of the Prospectus and a personalised entitlement and application form ( Application Form ) shortly. You must follow the instructions in the Application Form to take up your entitlements.

A copy of the Prospectus may also be viewed on the Company’s website www.sprintex.com.au or the ASX website.

If you have any questions, please call the Company Secretary on +61 8 9262 7222 at any time between 8.30am to 5.30pm (WST), Monday to Friday before the Rights Issue Offer closes, or consult your stockbroker or professional advisor.

The Company thanks you for your continuing support.

Yours faithfully,

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Robert Anthony Molkenthin Company Secretary Sprintex Limited

183 Mulgul Road, Malaga WA 6090 PO Box 3348 Malaga DC WA 6945 Phone: +61 8 9262 7277 Fax: +61 8 9262 7288 Email: [email protected] URL: www.sprintex.com.au