ZIMI LIMITED — Capital/Financing Update 2020

Jan 12, 2020

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$1.5 Million Fully Underwritten Entitlement Issue to Fund Commercialisation Strategy

ASX RELEASE

13[th] January 2020

Highlights

• Quantify is raising up to $1.5m by way of a fully underwritten Entitlement Issue on the basis of 1 new share for every 4 held (on the record date) at an Issue Price of $0.004 per Share to raise gross proceeds of approximately $1.5m.

• Participants in the Entitlement Issue will receive 1 new option for every 1 share subscribed (expiry 2 years from the date of issue, exercisable at $0.008). The Company will apply for the Options to be listed on the ASX.

• The Entitlement Issue will be fully underwritten by Pinnacle Corporate Finance Pty Ltd.

• The Company has a strong pipeline and has reduced its operation costs by a $1m in 2019.

• Brett Savill (CEO) and Peter Rossdeutscher (Chairman) will be taking up their entitlements.

Quantify Technology Holdings Limited (ASX: QFY ) (“ Quantify ” or the “ Company ”) is pleased to announce that it will be undertaking a capital raising of approximately $1.5m (“ Capital Raising “) through its appointed Lead Manager, Pinnacle Corporate Finance Pty Ltd (“ Pinnacle ” or the " Underwriter ") via an entitlement issue (“ Entitlement Issue ”).

Quantify CEO Brett Savill commented:

“The Company executed an initial $500,000 order with exclusive stockists Harvey Norman Commercial Division on the East Coast and another stocking order with Fokused in Western Australia. There is a solid pipeline underneath this including, but not limited to, exclusive threeyear arrangements to supply Blaq Projects and 3 Property Group, alongside orders with the Stable Group.

At the same time, our products and technology will be appearing in a renovation show on Channel 9 shortly that we expect will stimulate demand for our market leading products. Finally, we are working closely with Honeywell as part of their PropTech Hub which we expect to further generate interest in our products and technology.

Given the exciting future prospects of the Company and the important stage in its development, the Chairman and I will be taking up our entitlement and we encourage other eligible shareholders to carefully read the Prospectus to be issued and consider taking up their entitlement too.”

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Entitlement Issue

To enable all eligible existing shareholders the opportunity to participate in the Capital Raising, the Company will launch an entitlement issue on the basis of one (1) new Share for every four (4) Shares held on the record date, at the Issue Price of $0.004 per Share to raise gross proceeds of approximately $1.5m (“ Entitlement Issue” ). The Entitlement Issue will be fully underwritten by Pinnacle. A prospectus (“ Prospectus ”) for the Entitlement Issue is expected to be lodged with ASIC and announced to ASX on or around 16 January 2020.

Options

Participants in the Entitlement Issue will receive one (1) free option for every one (1) Share subscribed (“ Options ”). The Options will have an expiry date of 2 years from the date of issue and will be exercisable at $0.008 each. The Company will apply for the Options to be listed on ASX.

Use of Funds

Funds raised under the Capital Raising will primarily be used to advance revenue generating contracts and product licensing opportunities, as well as fund research and development, marketing, working capital and general corporate expenditure.

Capital Structure

The indicative impact of the Capital Raising on the capital structure of the Company is set out below.

Security	Existing	Completion
Existing Shares	1,492,038,393	1,492,038,393
Shares under Entitlement Issue	-	373,009,598
Shares to Underwriter	-	15,000,000
Total Shares	1,492,038,393	1,880,047,991
Existing Options (unquoted)	19,531,800	19,531,800
Existing Options (quoted)	545,247,679	545,247,679
Options under Entitlement Issue	-	373,009,598
Options to Underwriter	-	15,000,000
Performance Shares	200,000,000	200,000,000
Performance Rights	22,166,666	22,166,666
Fully Diluted Share Capital	2,278,984,538	3,055,003,734

Note 1: Includes 15.0m shares being issued to the Underwriter as part payment its fees. Note 2: For further details, refer to the Appendix 3B released by the Company to ASX on 5 September 2019.

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Proposed Timeline

An indicative timetable for the Capital Raising is set out below.

n indicative timetable for the Capital Raising is set out below.
Event	Date
Capital Raising announced, return to trading on ASX	Monday, 13 January 2020
Lodgement of Prospectus	Thursday, 16 January 2020
Record Date for Entitlement Issue	Wednesday, 22 January 2020
Despatch of Prospectus and Entitlement Issue opens	Tuesday, 28 January 2020
Entitlement Issue closes	Tuesday, 18 February 2020
Notification of shortfall	Thursday, 20 February 2020
Shortfall funds due / settlement date	Tuesday, 25 February 2020

Note: The above dates and times are indicative only and are subject to change.

Capital Raising Fees

The Underwriter will be paid an underwriting fee of 4% and a management fee of 2% with respect to the Entitlement Issue, plus 15,000,000 Shares and Options. The Underwriter will also be entitled to a monthly retainer of $10,000 for a period of six months.

-ENDS-

This announcement has been authorised and approved in accordance with the Company’s published continuous disclosure policy and has been approved by the Board.

Further Information:

Investor Relations & Media Enquiries Caelie Jones E: caelie.jones@quantifytechnology.com| P: +61 (8) 6254 0200

About Quantify Technology

Quantify Technology is an Australian-based company, focused on making lives better in homes, workplaces, and communities with their Internet of Things (IoT) smart home technology. Their qDevices replace standard power outlets and light switches and can be controlled by voice, app and touch. Quantify has the opportunity to be the first truly mass-market smart home product because of its simplicity, the innovative nature of its technology, and its limitless platform. Its strategic priorities are to maximise sales domestically, secure distribution internationally and strengthen its platform.

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