VECTION TECHNOLOGIES LTD — Capital/Financing Update 2017

Mar 15, 2017

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14 March 2017

PRE-QUOTATION STATEMENTS

ServTech Global Holdings Ltd ( Company ) advises that it has closed the offer under the prospectus dated 20 December 2016 and completed the issue of 30,000,000 fully paid ordinary shares at an issue price of $0.20 per share and 2,500,000 options exercisable at $0.30 each expiring on the date that is 3 years from the date the Company is admitted to the official list of the Australian Securities Exchange ( ASX ).

The Company has also issued the following securities:

• 10,000,000 shares to Keith and Patricia Scudds in satisfaction of the loan agreement for approximately $2,000,000 (including interest) between the Scudds and the Company Group dated 5 February 2016 ( Loan Agreement );

• 10,000,000 shares to Otsana Capital (or its nominees) in satisfaction of corporate advisory and capital raising services provided to the Company pursuant to the agreement between the parties dated 7 June 2016 (as amended); and

• 12,000,000 shares to convertible note holders on conversion of all existing convertible notes with an aggregate face value of $1,200,000 pursuant to the terms of the convertible notes.

The Company confirms that the Company has been discharged of all liabilities and security over the Company's assets under the Loan Agreement.

The Company advises that the purchase of the management property business and associated portfolio of approximately 90 properties from AS Realty Pty Ltd by the Company's subsidiary Capitol Asset Management completed on 20 December 2016. The Company also purchased an additional 10 managed properties held by AS Realty Pty Ltd for approximately $31,000 using funds from the original debt facility as disclosed in the prospectus dated 20 December 2016.

In relation to the agreement to purchase a property management business and associated portfolio of managed properties from South Coast Realty (WA) Pty Ltd by Capitol Asset Management ( South Coast Realty Rent Roll Agreement ), the Company advises that it has completed its due diligence and obtained bank approval for finance of the purchase price of approximately $400,000. The first and second stages of settlement have completed with 5 managed properties being acquired by the Company. The Company is currently in discussions with South Coast Realty regarding the extension of the final stage of settlement and will keep the market updated. The Company confirms that the South Coast Realty Rent Roll Agreement does not have a material financial impact on the Company.

The Company confirms that it expects ServTech Global India Pvt Limited to be incorporated in India as a wholly owned subsidiary of the Company shortly following the admission of the Company to the official list of the ASX.

A: 4/24 Parkland Road, Osborne Park, Perth, WA - 6017 P: 1300 202 101

E: support@servtechglobal.com.au W: www.servtechglobal.com.au

The Company advises that the following securities are classified as restricted securities by the ASX:

Number	Type	Escrow period
48,284,995	Fully paid ordinary shares	24 months from the commencement of official quotation
2,500,000	Unquoted options exercisable at $0.30 each and expiring on the date which is 3 years after the date the Company is admitted to the official list of ASX
2,000,000	Class A performance rights which will convert to 2,000,000 shares if the earnings before interest, tax, depreciation and amortisation for the Company Group exceeds $0 for any 3 consecutive calendar months within 24 months of the Company being admitted to the official list of ASX
2,000,000	Class B Performance Rights which will convert to 2,000,000 shares if the Company Group achieves $20,000,000 total revenue and other income in any 12 calendar month period within 24 months of the Company being admitted to the official list of ASX
2,000,000	Class C Performance Rights which will convert to 2,000,000 shares if the Company Group achieves $50,000,000 total revenue and other income in any 12 calendar month period within 36 months of the Company being admitted to the official list of ASX
2,000,000	Class D Performance Rights which will convert to 2,000,000 shares if the VWAP for 10 consecutive trading days of shares equals or exceeds $0.40 on or before the date that is 5 years from the date the Company is admitted to the official list of ASX
2,000,000	Class E Performance Rights which will convert to 2,000,000 shares if the VWAP for 10 consecutive trading days of shares equals or exceeds $0.60 on or before the date that is 5 years from the date the Company is admitted to the official list of ASX
1,600,000	Fully paid ordinary shares	12 months from the date of issue, being 15 September 2017
2,440,000	Fully paid ordinary shares	12 months from the date of issue, being 16 September 2017
375,000	Fully paid ordinary shares	12 months from the date of issue, being 21 September 2017
100,000	Fully paid ordinary shares	12 months from the date of issue, being 23 September 2017
350,000	Fully paid ordinary shares	12 months from the date of issue, being 27 September 2017

Number	Type	Escrow period
625,000	Fully paid ordinary shares	12 months from the date of issue, being 28 September 2017
1,850,000	Fully paid ordinary shares	12 months from the date of issue, being 3 October 2017
250,000	Fully paid ordinary shares	12 months from the date of issue, being 6 October 2017
50,000	Fully paid ordinary shares	12 months from the date of issue, being 7 October 2017
500,000	Fully paid ordinary shares	12 months from the date of issue, being 11 November 2017
250,000	Fully paid ordinary shares	12 months from the date of issue, being 16 December 2017