SPRINTEX LIMITED — Capital/Financing Update 2021

Nov 1, 2021

ASX: SIX

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Sprintex Limited ABN: 38 106 337 599

ASX RELEASE

2 November 2021

Placement, SPP and AGM Deferral

Highlights:

• Placement at $0.075 per share raises $4,000,000

• Share Purchase Plan to raise up to $1,000,000 for eligible shareholders with a record date of 1 November 2021

• Annual General Meeting to be held in December 2021

Placement:

Sprintex Limited (“Sprintex” or the “Company”) is pleased to announce the Company has received firm commitments from sophisticated and professional investors to raise $4,000,000 (before costs) through the issue of 53,333,334 fully paid ordinary shares (Shares) in the Company (Placement) at an issue price of $0.075 per Share (Placement Shares), together with 1 free attaching option exercisable at $0.10 on or before the anniversary of their issue (Placement Options) for each two participating Shares. The Placement was well supported.

Under the Placement, 20,409,654 Placement Shares will be issued under the Company’s placement capacity under Listing Rule 7.1 on or about 8 November 2021 and 32,923,680 Placement Shares will be issued subject to shareholder approval at the AGM planned for December 2021 and would be issued shortly after the AGM. Subject to shareholder approval, all Placement Options will also be issued shortly after the 2021 AGM.

Commenting on the Placement, Sprintex’s Managing Director and CEO Jay Upton said:

“We are very pleased with the strong demand for the placement and we would like to reward existing shareholders by enabling them to participate in an SPP on the same terms as the Placement.

“The Sprintex Board is excited to continue to develop premium products and expand the Company’s global growth, particularly in the e-compressor sector where we have recently signed two significant revenue generating contracts.”

Viriathus Capital Pty Ltd acted as Lead Manager to the Placement and will be paid a capital raising fee of 6% of the gross proceeds raised under the Placement. In addition, the Company has agreed to issue the Lead Manager 1,000,000 unlisted options exercisable at $0.10 on or before the anniversary of the issue of the Placement Shares (ie, on the same terms as the Placement Options). The issue of the options to the Lead Manager (or its nominees) is subject to shareholder approval at the Company’s AGM.

Unit 2 / 63 Furniss Road, Darch WA 6065 Phone: +61 8 9262 7277 Email: admin@sprintex.com.au URL: www.sprintex.com.au

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The funds to be raised will be used to finance the system development and production costs of its recently announced e-compressors ( see ASX announcements of 14 September 2021 and 25 October 2021 ):

• Building and fit out costs of new production facility;

• Production and testing equipment costs;

• Engineering and development costs;

• Inventory build costs; and

• Working capital

Share Purchase plan:

In recognition of the support received from its shareholders, Sprintex intends to undertake a Share Purchase Plan (SPP) to raise up to $1,000,000 for all shareholders with an address in Australia and New Zealand (Eligible Shareholders) on 1 November 2021.

The indicative timetable for the issue of the SPP is as follows:

Event	Date
Record Date for determining SPP Entitlements	1 November 2021
Announcement of SPP and Appendix 3B	2 November 2021
Lodgement of Prospectus with ASIC & ASX	8 November 2021
Ex date	11 November 2021
Issue of Placement Shares and OptionsIssue of SPP Shares and OptionsDespatch of new holdingstatements	10 December 2021

As the dates set out above are indicative only, the Company reserves the right to amend them subject to the requirements of the Corporations Act and the ASX Listing Rules. The offer of the SPP will be made under a prospectus that will be available for download from the Company’s website www.sprintex.com.au as from the date of lodgement of the prospectus with ASIC. A paper copy may be obtained from that time free of charge, by contacting the Company.

Annual General Meeting:

Sprintex has decided to defer its annual general meeting in line with guidance issued by the Australian Securities and Investment Commission (ASIC) on 20 March 2020 which will enable the Company to table the resolutions to effect the placement, replenish its placement capacities and issue of options.

ASIC have acknowledged that COVID-19 may temporarily impact on companies’ ability to hold an annual general meeting (AGM). This issue is most immediately relevant for public companies with 30 June 2021 balance dates that are required to hold an AGM by 30 November 2021. For these entities, ASIC:

• Confirmed it will take no action if the AGMs are postponed for two months; that is, until the end of January; and

• Supports the holding of AGMs using appropriate technology.

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ASIC cautions entities against holding an AGM while there are restrictions on large gatherings, unless the entity can provide members as a whole with a reasonable opportunity to participate in the meeting.

ASIC does not have the power to grant extensions of time to hold an AGM on a ‘class basis’. ASIC has therefore provided a ‘no-action’ position on upcoming AGMs that need to be deferred or that are held online.

ASIC has adopted a two-month ‘no-action’ position for entities with a financial year end of 30 June 2021 that do not hold their AGM by 30 November 2021. At present, these entities ideally will be able to hold their AGM by the end of July 2020, but the situation will remain under review by ASIC.

This ‘no-action’ position means that ASIC will not take action against an entity with a financial year end of 30 June 2021 who fails to comply with s250N(2) of the Corporations Act 2001 provided the entity holds the AGM by 31 January 2022 or such later date as ASIC advises.

• Ends -

This ASX announcement was authorised for release by the Managing Director and CEO of Sprintex.

For further information

Sprintex Limited MMR Corporate Services Pty Ltd Jay Upton Level 5, 52 Phillip Street Managing Director and CEO Sydney, NSW 2000 Australia P: +61 8 9262 7277 P: +61 2 9251 7177 E: jay.upton@sprintex.com.au E: Sprintex@mmrcorporate.com

About Sprintex

Sprintex is a clean air compressor engineering, research, product development and manufacturing company, incorporated in Australia in 2003. Sprintex designs and manufactures electric and mechanically driven clean air compressors for use in a wide variety of applications, including:

• combustion engines where Sprintex sells Sprintex® twin screw superchargers, and supercharger systems incorporating the Sprintex® twin screw supercharger, in the automotive aftermarket and original equipment manufacturer (OEM) market in Australia, Asia, Africa, the Middle East and the United States of America;

• hydrogen fuel cells, which require a constant flow of oxygen rich air; and

• industrial oil-free clean air applications, including wastewater treatment.

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