VINYL GROUP LTD — Capital/Financing Update 2013

Aug 5, 2013

ASX CODE: MBO

Date: 06 August 2013

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ASX ANNOUNCEMENT AND MEDIA RELEASE

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR ANY SUCH JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL

Mobilarm announces 1 for 7 Non-Renounceable Entitlements Offer to raise up to $1.7M

• Up to 42.8 million new shares to be issued at $0.04 per share

• Proceeds to be used to procure inventory for rollout of rental solutions

• Existing eligible shareholders to have the opportunity to apply for shortfall shares

• Offer partially underwritten to $1.3M

Global marine safety equipment provider Mobilarm Limited (ASX: MBO) today reported that it is undertaking a pro rata non-renounceable entitlements offer (Entitlement Offer) of new ordinary shares (New Shares) to raise up to $1,711,725 (subject to rounding) before costs. The Entitlement Offer is being made on the basis of 1 New Share for every 7 Mobilarm shares held at the offering price of $0.04 for eligible shareholders.

The net proceeds of the Entitlement Offer will be used to fund the purchase of new beacon and lifejacket inventory for the rollout of rental solutions. The Company is also raising working capital as part of this new program to fund operations for customers who transition from outright purchase to rental solution.

Overview of the Entitlement Offer

The Entitlement Offer will be made to all Mobilarm Limited shareholders who were registered holder of Mobilarm’s shares and had a registered address on the Mobilarm Limited securities register in Australia or New Zealand as at 5:00 pm AWST on 26 August 2013 (Eligible Shareholders) . Shareholders not satisfying these criteria will not be eligible to participate in the Entitlement Offer.

Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. Eligible Shareholders who do not take up their entitlements in full will be diluted and will not receive any value in respect of those entitlements they do not take up.

New Shares issued under the Entitlement Offer will rank equally with all ordinary shares already on issue. Under the Entitlement Offer, Mobilarm will issue up to 42,794,383 New Shares, resulting in total Mobilarm ordinary shares on issue after completion of the Entitlement Offer of up to 342,355,064 (subject to rounding).

For the purposes of calculating each Eligible Shareholder’s entitlements, fractional entitlements to new shares will be rounded up to the nearest whole number of shares.

The Entitlement Offer is underwritten up to $1,300,000 or 32,500,000 ordinary shares by Truestone Capital Limited.

Eligible Shareholders will be able to apply for New Shares in excess of their entitlement (Additional Shares) . Applications for Additional Shares will be satisfied out of the shortfall if the Entitlement Offer is not fully subscribed for. While the number of Additional Shares that may be applied for is uncapped, Mobilarm may scale

back applications for Additional Shares in its absolute discretion. Mobilarm may also place the shortfall to investors who are not Eligible Shareholders, subject to compliance with securities laws.

An Entitlement Offer booklet setting out further details of the Entitlement Offer will be issued to Eligible Shareholders and will include instructions on how Eligible Shareholders may accept their entitlement. The Entitlement Offer booklet will be made available on the Company’s website: www.mobilarm.com.

The timetable for the issue is as follows:

table for the issue is as follows:
Announcement of the Entitlement Offer (prior to market opening)	6 August 2013
Release of Offer Booklet, Appendix 3B and Cleansing Notice to ASX (prior to market opening)	6 August 2013
Notice to option holders	6 August 2013
Notice to shareholders with timetable	8 August 2013
Notice to ineligible shareholders	8 August 2013
Shares trade on ‘ex’ entitlement basis	20 August 2013
Record Date for determining Entitlements	5:00pm on 26 August 2013
Offer Booklet sent out to Eligible Shareholders	28 August 2013
Entitlement Offer opens (Open Date)	28 August 2013
Entitlement Offer closes (Close Date*) 5.00 pm (AWST)	5:00pm on 11 September 2013
Shares trade on a deferred settlement basis	12 September 2013
Entitlement Offer Shortfall notification to ASX	12 September 2013
Issue of New Shares (and dispatch of refund payments in respect of unsuccessful applications under the Shortfall Offer)**	18 September 2013
Dispatch of holding statements	19 September 2013
Normal trading of New Shares on ASX	20 September 2013
Settlement Date	25 September 2013
Issue of Shortfall Securities	2 October 2013

Note that all dates are indicative only. Mobilarm reserves the right to change these dates subject to the Corporations Act 2001 (Cth), ASX Listing Rules and the underwriting agreement with Truestone Capital Limited. All times are Australian Western Standard Time unless otherwise indicated.

-Ends-

Further details

Ken Gaunt Chief Executive Officer

Email: keng@mrtsos.com Tel.: +61 417 961 770 Tel.: +44 782 731 4442 www.mobilarm.com

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