VECTION TECHNOLOGIES LTD — Capital/Financing Update 2021

Nov 29, 2021

30 November 2021 | Australia

==> picture [130 x 44] intentionally omitted <==

ASX RELEASE

STRONGLY SUPPORTED INSTITUTIONAL GROWTH FOCUSSED FUNDING ROUND

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies , Vection or the Company ) is pleased to announce it has received firm commitments, from predominantly technology focussed domestic and international institutional investors, for a strongly supported, growth-focussed, equity funding round of $12 million ( Placement ).

Highlights:

• Firm commitments received from predominantly technology focused domestic and international institutional investors, for a strongly supported, growth-focussed, equity funding round of $12 million

• Placement to build capacity for growth, with several Australian and global high-quality institutional investors joining the Company’s share register

• Acceleration of aggressive global acquisition strategy targeting the XR & metaverse enterprise technology sector, anticipating the fierce competition of global technology corporations looking for XR & metaverse exposure

• Placement aligns with Vection’s strong history of well-executed acquisitions

• Strengthened balance sheet post Placement with ~$20 million cash on hand[1 ]

Strategic Overview:

Via this Placement, Vection Technologies has strategically capitalised on overwhelming institutional market interest to build capacity for growth, with several Australian and global high-quality institutional investors joining the Company’s share register.

global acquisition strategy targeting the XR & metaverse enterprise technology sector, anticipating the fierce competition of global technology corporations looking for XR & metaverse exposure, to position the Company as a global emerging leader.

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY

==> picture [25 x 25] intentionally omitted <==

AUGMENTED REALITY INDUSTRIAL IoT CAD

“ Vection Technologies’ Board of Directors have received this overwhelming institutional investor interest with support, combining a stronger balance sheet with a clear alignment of M&A and corporate strategy to yield compelling returns for all stakeholders. We are pleased to welcome these high-calibre investors to our Company ” said Gianmarco Biagi, Managing Director of Vection Technologies.

1 Based on $12 million Placement plus $6.8 million on hand as at 30 September 2021 and ~$1 million options exercise (ASX:16 November 2021)

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Europe North America Address: Via Isonzo 61 Address: 785 Market Street, #600 40033 Casalecchio di Reno (BO), San Francisco CA 94103 Italy USA

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

1

Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446

==> picture [130 x 44] intentionally omitted <==

“ As we anticipate increased M&A interest in the XR & metaverse space, we believe that building size is a critical stepping stone for the global success of Vection Technologies and its stakeholders. This strategic funding round will enable the Company to aggressively target M&A transactions globally, aligned with our strong history of well-executed acquisitions with a keen focus on our shareholders interest.”

==> picture [437 x 201] intentionally omitted <==

----- Start of picture text -----

$0.30
Capital Raise
(ASX: 30 November 2021)
$0.20 JMC Group
(ASX: 15 June 2021)
Blank Canvas
(ASX: 27 April 2021)
$0.10 Mindesk
(ASX: 28 April 2020)
Vection
(ASX: 12 April 2019) Capital Raise
(ASX: 2 October 2020)
Capital Raise
$- (ASX: 7 September 2020)
Capital Raise
(ASX: 27 March 2019)
----- End of picture text -----

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY

Figure 1: Historical Acquisitions and Capital Raises based on share price

==> picture [25 x 25] intentionally omitted <==

Placement Details:

equity funding round of $12 million via the placement of new fully paid ordinary shares (Shares) to be issued at $0.20, representing the last 15-days Volume Weighted Average Price (VWAP).

breakdown:

==> picture [167 x 175] intentionally omitted <==

----- Start of picture text -----

34.7% 38.8%
9.3%
17.2%
----- End of picture text -----

• Board & Management: 38.8%

• Institutional Investors: 17.2%

• Other Top 20: 9.3%

• ● Other Shareholders: 34.7%

AUGMENTED REALITY INDUSTRIAL IoT CAD

Figure 2: Vection Technologies Ownership Breakdown post Placement

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Europe Address: Via Isonzo 61 40033 Casalecchio di Reno (BO), Italy

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

2

Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446

==> picture [130 x 44] intentionally omitted <==

Furthermore, Mr Lorenzo and Gianmarco Biagi will sell an aggregate of 15 million shares, representing less than 5% of their total combined holding, via a controlled entity, to predominantly fund personal and fiscal obligations. (Sell-Down)

The Placement of $12 million (before costs of the offer) will be completed through the issue of 60 million fully paid ordinary shares (Shares) at an issue price of 20c per Share. The Placement is expected to settle on Thursday 2 December 2021. The Placement Shares are proposed to rank equally with the existing shares of the Company.

The Company engaged Evolution Capital (Evolution) as Lead Manager to the Placement. The Placement is undertaken within the Company’s existing capacity under Listing Rule 7.1, and accordingly, shareholder approval is not required. Evolution (or its nominee) has been offered 32.5 million unlisted options with an exercise price of $0.25 and an expiry of 3 years from date of issue as part payment for the services provided in connection with the Placement.

Use of Funds:

Of the $12 million in funds raised, approximately $2 million will be used to support Vection’s expansion plans and strengthening its R&D capabilities. A further $10 million will provide the Company with a stronger balance sheet for larger contracts and capacity to execute strategic initiatives as well as potential Merger & Acquisition opportunities.

ENDS

Investor Relations Contact Details:

Gianmarco Biagi - Managing Director (Europe Based) Email: gianmarco.biagi@vection.com.au Phone: +39 051 0142248

Gianmarco Orgnoni - Director and COO (Australia Based) Email: gianmarco.orgnoni@vection.com.au Phone: +61 8 6380 7446

About Vection Technologies:

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY AUGMENTED REALITY INDUSTRIAL IoT CAD

Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation.

Through a combination of 3D, Virtual Reality, Augmented Reality, Industrial IoT, AI, ICT and CAD solutions, Vection Technologies helps companies and organisations to innovate, collaborate and create value.

For more information please visit the Company’s websites:

vection.com.au

mindeskvr.com blankcanvas.studio jmcgroup.it

ASX release authorised by the Board of Directors of Vection Technologies Ltd.

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446

Europe North America Media Enquiries Address: Via Isonzo 61 Address: 785 Market Street, #600 AUpress@vection.com.au 40033 Casalecchio di Reno (BO), San Francisco CA 94103 EUpress@vection.com.au Italy USA

3