WINGARA AG LTD — Interim / Quarterly Report 2016

Oct 27, 2016

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Attachment to Appendix 4C

Summary of period 1 July to 30 September 2016

Wingara Ag Ltd (ASX:WNR) is pleased to provide the Company’s Appendix 4C for the period 1 July to 30 September 2016.

September Quarter Review

• $5m capital raised to pursue acquisitions

• MoU signed for 20Ha greenfield development at Horsham

• Further reduction of debt

• Planning complete for harvest season

25[TH] October 2016

Operating activities for the quarter reflected higher than normal volume in domestic sales relative to previous periods as storage sheds were cleared in preparation of the new harvest season.

One off costs associated with the capital raise were also incurred.

During the quarter, the Company announced a $5m capital raise from new and existing institutional and sophisticated investors. The capital raise was via the issue of convertible notes to the value of $2m with the balance in fully paid ordinary shares at a price of $0.30 per share.

The Company has already provided an update to market, dated 11[th] October 2016, with commentary surrounding the proposed acquisition of Pyrenees Hay Processing Co-Operative Ltd (“PHPC”).

The Company also announced it has signed a Memorandum of Understanding (“MoU”) with Horsham City Council which gives an exclusive option to purchase a 20Ha greenfield site adjacent to the railway for development. Details have also been included in the 11[th] October 2016 ASX release.

The Company is pleased to advise it continues to reduce its debt in line with forecast.

For the purpose of ASX Listing Rule 4.10.19, the Board confirms that during the period from 27 January 2016 to 30 June 2016, the Company used its cash and assets readily convertible to cash in a manner consistent with its stated business perspective

The Appendix 4C follows.

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Wingara AG Limited

ACN		Quarter ended (“current	quarter”)
009 087 469		30 September 2016
Consolidated statement of cash flows		Current quarter	Year to date
		$A’000	(3 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	3,109	3,109
1.2	Payments for
	(a) research and development	-	-
	(b) product manufacturing and operating costs	(604)	(604)
	hay Purchases	(1,794)	(1,794)
	(c) advertising and marketing	-	-
	(d) leased assets	(20)	(20)
	(e) staff costs	(343)	(343)
	(f) administration and corporate costs	(210)	(210)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	2	2
1.5	Interest and other costs of finance paid	(31)	(31)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating
	activities	110	110
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(50)	(50)
	(b) businesses (see item 10)	-	-

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(3 months)
			$A’000
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing
	activities	(50)	(50)
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	2,828	2,828
3.2	Proceeds from issue of convertible notes	1,995	1,995
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of
	shares, convertible notes or options	(266)	(266)
3.5	Proceeds from borrowings	165	165
3.6	Repayment of borrowings	(91)	(91)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing
	activities	4,631	4,631
4.	Net increase / (decrease) in cash and
	cash equivalents for the period	4,690	4,690
4.1	Cash and cash equivalents at beginning of
	quarter/year to date	2,145	2,145
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	110	110
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)	(50)	(50)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(3 months)
			$A’000
4.4	Net cash from / (used in) financing activities
	(item 3.10 above)	4,631	4,631
4.5	Effect of movement in exchange rates on
	cash held	11	11
4.6	Cash and cash equivalents at end of
	quarter	6,847	6,847
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	6,847	2,145
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	6,847	2,145
6.	Payments to directors of the entity and their associates		Current quarter
			$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		56
6.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions		included in
	items 6.1 and 6.2
The	amount at 6.1 includes payment of directors’ fees and payments to a director related entity
excluding reimbursement for administrative expenses		and travel expenses.
7.	Payments to related entities of the entity and their		Current quarter
	associates		$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions		included in
	items 7.1 and 7.2
N/A

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	4,805	2,386
8.2	Credit standby arrangements	-	-
8.3	Other (please specify)	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Item 8.1 includes the following facilities with the ANZ Banking Group:

Facility	Credit Limit	Interest rate
	($A’000)	(% p.a.)
ANZ Tailored Commercial Facility	800	BBR + 1.3
Overdraft Facility	800	BBR + 1,8
Asset Finance Facility	600	-
Stand by Letter of Credit or Guarantee Facility	80	-
Inventory Loan Facility – Daily rate	2,500	BBR + 1.5
Commercial Card Facility	25	-

All of the above facilities are secured.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		-
9.2	Product manufacturing and operating costs		(1,920)
9.3	Advertising and marketing		-
9.4	Leased assets		(20)
9.5	Staff costs		(370)
9.6	Administration and corporate costs		(220)
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		($2,530)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

10.	Acquisitions and disposals of	Acquisitions		Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity		-		-
10.2	Place of incorporation or		-		-
	registration
10.3	Consideration for acquisition or		-		-
	disposal
10.4	Total net assets		-		-
10.5	Nature of business		-		-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................ Company secretary

Date: 28[th] October 2016

Print name: Phillip Hains

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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