Sophisticated Capital invests funds into smaller ASX listed entities – this is done by way of private placement and/or ongoing working capital funding arrangements. Each investment is looked at individually and one of the standard deal structures is worked through with the Company to develop the hybrid appropriate to the situation.

Our investment objectives are aligned with those of the Company as Sophisticated Capital makes acceptable returns when the Company’s share price performs.

As part of the services provided to clients Sophisticated Capital can assist the Company with its presentations and market facing activities.

Benefits to the Company

1. As its share price improves it can draw down working capital at an increasing share price
2. It can limit the numbers of pieces of paper to be issued and the dilution that would otherwise occur
3. A long-term finance facility is established
4. The Company issues shares at a known discount to the then prevailing current share price
5. No cash fees are paid out by the company
6. As the holder of options Sophisticated Capital is incentivised for an increasing share price
7. Access to skills and experience of long-term participants in the market

Funds are sourced either from Sophisticated Capital itself or on occasions sophisticated investors, via SA Capital, under section 708 of the Corporations Act. Sophisticated Capital Pty Ltd (ACN 622 752 783) is a Corporate Authorised Representative of SA Capital Pty Ltd (ACN 114 959 803 and AFSL 291787).

32 Short Crescent, Beaumont SA 5066