XREF LIMITED — Capital/Financing Update 2019

Dec 15, 2019

16 December 2019

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Xref successfully completes $3.48M placement

Xref Limited ( ASX: XF1 ), the human resources technology company, is pleased to announce it has received commitments from institutional and professional investors to raise $3,476,000 before costs through a placement (“Placement”) of 10,533,333 fully-paid ordinary shares (“Placement Shares”).

The Placement price of $0.33 represented a 10% discount to the last closing price prior to the trading halt requested for the Placement. The new shares to be issued under the Placement will rank pari passu with existing ordinary shares and Xref will be utilising the Company’s placement capacity in accordance with ASX Listing Rule 7.1A.

Participants in the Placement include existing and new institutional investors and do not include any related parties of Xref. The Company successfully raised the amount sought, which it expects will be sufficient to enable Xref to reach cash flow break-even in 2020. Settlement of the Placement is expected to occur on or about 17 December 2019.

The net proceeds of the Placement will be used to support further growth of Xref including additional sales and marketing capability, technology development and working capital requirements and other general corporate purposes.

TMT Partners was corporate adviser and lead manager to the Placement.

Management comments:

Executive director / CEO, Lee-Martin Seymour said: “We are proud to have achieved these commitments through the strong and direct relationships we have established with our existing institutional shareholders and we are delighted to welcome another wellknown institutional shareholder to our register.

This raise will allow us to focus on the busiest time for our business (the third and fourth quarters of the financial year) with a defined growth strategy and clear road to profitability, which has been recognised and embraced by our institutional investors, an encouraging indication of their ongoing support.”

Investor and media enquiries: Presentation: xf1.com Investor Centre: xref.com/en/investor-centre Twitter: @xf1 Email: investors@xf1.com

	Key points about Xref
First mover advantage	Xref provided the first automated solution for the candidate referencing process and it is capitalising on its first-mover advantage byfocusingon and investingfor internationalgrowth.
Business model	Under Xref’s business model, when clients purchase credits (credit sales) to use the candidate referencing platform, the value of their purchases is recognised as unearned income. When they pay for the credits, the cash is recognised as cash receipts. Once the credits are used by the client (usage), Xref recognises the value of the credits used as revenue(recognised revenue).
Global addressable market	Xref’s addressable market includes more than 180 million employees in North America, 120 million employees in Europe and 15 million employees in Australia and New Zealand.

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