ikeGPS announces NZ$19.7 million equity raise

FOR IMMEDIATE RELEASE 28 July 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ikeGPS announces NZ$19.7 (A$18.4) million equity raise to support recent customer acquisition and provide capacity for potential growth opportunities ikeGPS (IKE) is pleased to announce that it is conducting an institutional placement ('Institutional Placement'), and a fully underwritten 1 for 7 accelerated non-renounceable entitlement offer ('Entitlement Offer'), to raise approximately NZ$19.7 million. Funds raised from the Institutional Placement and Entitlement Offer will be used to: o increase IKE's sales, support, and implementation teams to support recent customer wins and a growing sales pipeline; and o provide funding capacity for potential growth opportunities. The Institutional Placement and Entitlement Offer will be conducted at NZ$0.68 (A$0.635) per New Share ('Offer Price'), representing a: o 11.7% discount to the last NZX closing price on 27 July 2020 of NZ$0.77; and o 12% discount to the NZX 5-day Volume Weighted Average Price ('VWAP') up to and including 27 July 2020. Bell Potter Securities Limited ('Bell Potter') is Lead Manager and bookrunner to the Offer. Institutional Placement The Institutional Placement of New Shares to eligible institutional investors will raise approximately NZ$9.8 million. The Institutional Placement will result in approximately 14,348,363 million New Shares being issued representing approximately 14% of IKE's existing capital. Entitlement Offer Overview The 1 for 7 Entitlement Offer to raise approximately NZ$9.9 million, and will be conducted in two parts: o an entitlement offer to institutional shareholders ('Institutional Entitlement Offer'); and o an entitlement offer to retail shareholders ('Retail Entitlement Offer'). The Entitlement Offer will result in approximately 14,615,027 million New Shares being issued, representing approximately 14.3% of IKE's existing issued capital. Of the IKE Directors who are eligible shareholders, each has confirmed their intention to participate in the Entitlement Offer. Under the Entitlement Offer, eligible shareholders that take up their full entitlement may also apply for additional New Shares not taken up by other eligible shareholders up to a maximum of 100% above their pro rata entitlement. The Entitlement Offer is non-renounceable and entitlements are not transferrable and will not be traded on the NZX, ASX or any other exchange. Eligible shareholders who do not take up their entitlement under the Entitlement Offer in full or in part, will not receive any value in respect of those entitlements not taken up. The Entitlement Offer is fully underwritten by Bell Potter. Institutional Entitlement Offer The Institutional Entitlement Offer will be conducted on Tuesday 28 July 2020. Eligible shareholders under the Institutional Entitlement Offer include sophisticated, professional and other institutional shareholders located in Australia, New Zealand and select international jurisdictions ('Eligible Institutional Shareholders'). Under the Institutional Entitlement Offer, Eligible Institutional shareholders can choose to take up all, part or none of their entitlement. Entitlements not taken up under the Institutional Entitlement Offer will be offered to eligible institutional investors at the Offer Price in accordance with the terms of the Offer Booklet. Retail Entitlement Offer Retail shareholders with a registered address in New Zealand on the Record Date of 7.00pm (NZST)/ 5.00pm (AEST), Thursday 30 July 2020 ('Eligible Retail Shareholders'), have the opportunity to invest in New Shares at the Offer Price, on the terms and conditions outlined in the Offer Booklet to be sent electronically to Eligible Retail Shareholders on Friday 31 July 2020. The Retail Entitlement Offer will open on Friday 31 July 2020, and closes on Tuesday 11 August 2020 (unless extended). Eligible Retail Shareholders can only accept their entitlements by completing and returning the Entitlement and Acceptance Form accompanying the Offer Booklet, or applying online at www.ikeshareoffer.co.nz. Please note that shareholders with a registered address outside New Zealand on the Record Date are ineligible to participate in the Retail Entitlement Offer. Further details as to eligibility are set out in the Offer Booklet. For further detail, please refer to the Entitlement Offer Booklet accompanying this announcement. Relating to the capital raising, IKE CEO Glenn Milnes, commented. + We are pleased to offer both existing and new investors the opportunity to participate in the capital raising. The funds raised will enable IKE to increase capacity to service new and targeted IKE customers, some of whom are the largest communications and electric utility infrastructure companies operating in North America. New Shares issued under the Institutional Placement and Entitlement Offer will rank equally with existing IKE ordinary shares. The New Shares issued under the Institutional Placement and Institutional Entitlement Offer are expected to be allotted on Wednesday, 5 August 2020. Trading will commence on a normal settlement basis on the NZX and ASX on the same day. ENDS IKE seeks to be the standard for collecting, analysing and managing pole and overhead asset information for electric utilities, communications companies, and their engineering service providers. Contact: Glenn Milnes, CEO, +1 720-418-1936, glenn.milnes@ikegps.com End CA:00356955 For:IKE Type:OFFER Time:2020-07-28 09:28:59