Issue of Securities and Capital Raising Amendment

Oilex Ltd (the Company) is pleased to advise that it has issued today the first tranche of 157,894,737 shares to the clients of Novum Securities Ltd (Novum) pursuant to the capital raising announced on 11 September 2018 (Placement).

On 11 September 2018, the Company announced a debt and equity capital raising of £0.63 million (A$1.14 million) including the issue of 157,894,737 shares at 0.19 pence for £300,000 to clients of Novum (Novum Shares).  The issue of the remaining shares together with the drawdown of the loans pursuant to the Placement are anticipated to be completed on or about the end of this month.

Pursuant to the advisory agreement with Novum, the Company has today also issued 9,473,684 million options exercisable at 0.19 pence on before 17 September 2021 (Novum Options).

The issue of abovementioned Novum Shares under LR7.1A and Novum Options under LR7.1 are included in the attached Appendix 3B.

Issue of Series A Loan Options

On 26 July 2018 and 15 August 2018, the Company announced that it had entered into $330,000 in loan agreements (A Series Loans).  Pursuant to Series A Loan agreements, following the approval of shareholders on 14 September 2018, the Company has today issued 91,666,666 options exercisable at A$0.0036 on or before 26 July 2019 (Series A Loan Options).  

The issue of 83,333,333 Series A Loan Options is pursuant to LR7.1 shareholder approval with the balance of 8,333,333 options issued under the Company’s LR 7.1 capacity.  The issue of the Series A Loan Options is included in the attached Appendix 3B.

Capital Raising Amendment 

The Company advises that Placement announced on 11 September 2018 has been amended from £0.63 million to £0.70 million (A$1.27 million).  The amendment comprises:

·         an increase in the loans from A$250,000 to A$315,000 together with a further 15,772,871 options (expiry date of                       1 October 2019, exercise price of $0.4121) on the same terms and conditions; and

·         an increase of proposed share issue of £35,000, being an increase 18,421,053 shares at 0.19 pence.

The above mentioned new agreements are not with related parties of the Company.  Funds raised from the Placement are intended to be applied to the working capital requirements of the Company.  The issue of the additional shares and loan options are subject to shareholder approval under LR7.1, if required.  Settlement for the additional loan funding and equity proceeds is anticipated to be on or about 30 September 2018 with the applicable Appendix 3B to be released at that time.

Issue of Consultant Shares

The Company advises that it has entered into an agreement for consultancy services with 10,526,315 shares to be issued at £0.0019 per share as consideration in lieu of fees.  The consultancy agreement is not with a related party with the shares to be issued pursuant under LR7.1 on or about 30 September 2018, the applicable Appendix 3B will be released at that time.

Section 708A(5)(e) Statement

Pursuant to the issue of the abovementioned Novum Shares, Novum Options and the Series A Loan Options, Oilex gives notice under section 708A(5)(e) of the Corporations Act (Cth) (Act) that:

1)       Oilex issued the Shares without disclosure to investors under Part 6D.2 of the Act;

2)       As at the date of this notice, Oilex has complied with:

a)       the provisions of Chapter 2M of the Act as they apply to Oilex; and

b)       section 674 of the Act; and

3)        As at the date of this notice, there is no information that is ‘excluded information’ within the meaning of sections 708A(7) and 708(8) of the Act.

Issue of Securities and Capital Raising Amendment