“HELPING YOUR CLIENTS RAISE CAPITAL PAINLESSLY!”

1. “HELPING YOUR CLIENTS RAISE CAPITAL PAINLESSLY!” Presented by: Peter Towers, Managing Director, ESS BIZTOOLS

2. “Crowd Sourced Funding Equity Raising Scorecard” • Success! • $18.3M raised! • By 22 companies • These companies could have been your clients – if they are congratulations! Helping Your Clients Raise Capital Painlessly

3. Overview of Some Capital Raising (information from some Intermediaries’ websites) Xinja Bank – 100% Digital Bank - $2.4M Manrags – Premium socks and Underwear - $363,250 Choovie – Digital platform that matches moviegoers with empty seats - $294,500 The West Wind Gin – Australian Champion Gins - $932,000 Helping Your Clients Raise Capital Painlessly

4. Overview of Some Capital Raising (information from some Intermediaries’ websites) Memo Bottle – Flat water bottle designed to fit into your bag - $383,238 Bausele – Timekeeper luxury brands with Australian inspired crowns - $294,928 Plikan – Global currency App and pre paid Visa card that you can use anywhere - $248,930 Helping Your Clients Raise Capital Painlessly

5. Overview of Some Capital Raising (information from some Intermediaries’ websites) Orderup – Investment in a gaming brand - $361,394 Park – Leading soccer brand – balls, clothing - $316,035 Sash – An Australian take on modern Japanese fusion - $184,321 Greenfields Exploration Limited – Mining incubator and project initiator - $1.2M Helping Your Clients Raise Capital Painlessly

6. Helping Your Clients Raise Capital Painlessly B. Current Listings

7. Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Endeavour Brewing Co – Craft beer manufacturing DHF Surf – Surfboard design Direct Injection Technologies – Technology to supplement livestock Purahealth – Health supplements Australian Boutique Spirits – Manufactures and markets Australian made spirits Helping Your Clients Raise Capital Painlessly

8. Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Mobiltech – Travel solutions Edutech – Cloud enabled student tutoring Medical Services Group – Multi venue medical services business Industrial Tech – Patented safety device seeking capital after first sale Helping Your Clients Raise Capital Painlessly

9. Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Internet Gaming – Established company seeking funds to expand into new networks and markets Black Hops Brewery – Craft Beer and Wine HUTT – Tomorrows house today – delivering the future of zero carbon housing Helping Your Clients Raise Capital Painlessly

10. Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Dreamcity – An immersive theme park combining education with fun Oscar Razor - Australian premier shave club Your Mates – Craft beer and wine Picaluna – Network of professional funeral planners and celebrants Helping Your Clients Raise Capital Painlessly

11. This is Advisory Services! Proactive service for your clients Not a Tax Scheme! Completely legal process that enables small and medium sized businesses to finance their businesses Helping Your Clients Raise Capital Painlessly

12. This is Advisory Services (cont’d…)! Biggest improvement for small and medium sized business financing for the last 35 years! Helping Your Clients Raise Capital Painlessly

13. This is Advisory Services (cont’d…)! If you are committed to being proactively involved in advising client/prospect on Crowd Sourced Funding: Helping Your Clients Raise Capital Painlessly

14. This is Advisory Services (cont’d…)! • In 12 months time would you be happy with: • “Happy Accountancy/Advisory Firm?” • New “income streams” have been created for your firm • Happy Team Members?” • Accountants and team members involved in “new and interesting work” Helping Your Clients Raise Capital Painlessly

15. This is Advisory Services (cont’d…)! • “Happy Clients?” • Supplying a service that will assist “some of your clients raise finance for their business” • Then please join us on this journey • We know that it won’t be for everyone – this is a great diversification opportunity for your firm Helping Your Clients Raise Capital Painlessly

16. Embrace the Fourth Option Don’t lose clients because you are not aware of the fourth option to raise business finance Helping Your Clients Raise Capital Painlessly

17. Embrace the Fourth Option • Option 1 – Bank • Security required • Personal Guarantees • Monthly repayments • Post Royal Commission Requirements Helping Your Clients Raise Capital Painlessly

18. Embrace the Fourth Option • Option 2 – Venture Capital • Reputation of being difficult to deal with • Strike tough deals • Normally larger amounts of capital • Your client might not be ready for this type of scrutiny Helping Your Clients Raise Capital Painlessly

19. Embrace the Fourth Option • Option 3 – Raising Capital under s708 • Limited to 20 investors per annum • $2M per annum upper limit • 50 shareholder limit can be a problem Helping Your Clients Raise Capital Painlessly

20. Embrace the Fourth Option • And now Option 4 – Crowd Sourced Funding Equity Raising • Small proprietary company/small public company • Can raise up to $5M in 12 months • Can repeat in following years • No need for an auditor until $3M raised Helping Your Clients Raise Capital Painlessly

21. Embrace the Fourth Option • Retail investor limit $10,000 per annum • Ordinary shares • No interest payments • No security offered • But, must have a good story! Helping Your Clients Raise Capital Painlessly

22. Great Opportunity for Accountants Companies annual turnover must be lower than $25m Most companies will be clients of small to medium-sized accountancy firms Helping Your Clients Raise Capital Painlessly

23. Great Opportunity for Accountants (cont’d….) Great opportunity for your firm to offer a proactive Crowd Sourced Funding Equity Raising Service Opportunity to grow with your clients! Helping Your Clients Raise Capital Painlessly

24. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Crowd Sourced Funding Eligibility Matrix (BAS5004) Helping Your Clients Raise Capital Painlessly

25. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey • Compliance with the Legal Requirements • Group turnover under $25M • Group Gross Assets under $25M • No member listed on a stock exchange • No member on a financial market • Money raised not being used for a credit facility Helping Your Clients Raise Capital Painlessly

26. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey B. Don’t worry about: • Age of the company • Type of Business/industry Helping Your Clients Raise Capital Painlessly

27. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey C. 10 Key Characteristics: • A company wanting to “scale up” • Fast growing ambitious company • Wanting to expand • Wanting to acquire • CEO with a “big audacious idea” • Exciting vision • Loans to be repaid Helping Your Clients Raise Capital Painlessly

28. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey C. 10 Key Characteristics: • “Bank of Mum and Dad Loans” • Succession problem • Does not qualify as an Early Stage Innovation Company (ESIC) Helping Your Clients Raise Capital Painlessly

29. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Be proactive – don’t wait for your client to contact you! Invite these clients to a seminar/webinar to brief them on Crowd Sourced Funding Equity Raising (seminar material included in ESS BIZTOOLS’ product package) Helping Your Clients Raise Capital Painlessly

30. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey • Meet with clients who are interested and submit proposal to advise on: • Crowd Sourced Funding Equity Raising operations • Eligibility • Crowd Sourced Funding Intermediary’s role, duties, responsibilities and powers • Overview of Crowd Sourced Funding Offer Document • Listing on Intermediary’s website Helping Your Clients Raise Capital Painlessly

31. Accountants Have a Definite Role in the Crowd-Sourced Funding Journey • Indicative fee for this segment of the service $1,000 - $10,000 plus GST (full package included in ESS BIZTOOLS’ Product Package) Helping Your Clients Raise Capital Painlessly

32. Client Wants to Proceed • In conjunction with client directors and senior managers prepare a Business Plan or a summary of the company: • Industry • Products/services • Customers • Team Helping Your Clients Raise Capital Painlessly

33. Client Wants to Proceed (cont’d…) • Directors • Location • Website • Intellectual Property • Unique competitive advantage • Current financial position Helping Your Clients Raise Capital Painlessly

34. Client Wants to Proceeed (cont’d…) Helping Your Clients Raise Capital Painlessly Arrange meeting/telephone call for client with a number of Intermediaries Discuss services that the Intermediary would provide Discuss fees to be charged by the Intermediary

35. Client Wants to Proceeed (cont’d…) • The legislation does not specify fees payable • The agreed fee can be: • Cash • Shares • A combination of cash/shares Helping Your Clients Raise Capital Painlessly

36. Client Wants to Proceeed (cont’d…) Helping Your Clients Raise Capital Painlessly The agreed fee must be disclosed in the Crowd Sourced Funding Offer Document and on the Intermediary’s website Determine what upfront payments will be required

37. Costs Could Include: Helping Your Clients Raise Capital Painlessly On-boarding fees: $5,000 - $10,000 Production of a company video: $4,000 - $5,000 Design fees: $1,000 - $2,000 Fees charged by Intermediaries seem to range from 4% to 8% of capital raised

38. Discussions with Intermediaries Helping Your Clients Raise Capital Painlessly Discuss information that the Intermediary believes should be included within the Crowd Sourced Funding Offer Document

39. Comments from some Intermediaries Individual Intermediaries appear to have 20,000 to 30,000 potential investors Helping Your Clients Raise Capital Painlessly

40. Comments from some Intermediaries (cont’d…) Some of the Intermediaries have expressed a preference for companies to have some “pre-seed funding” before proceeding with Crowd Sourced Funding Equity Raising. Pre-seed funding assists in the confirmation of a company’s value Helping Your Clients Raise Capital Painlessly

41. Comments from some Intermediaries (cont’d…) • Some Intermediaries appear to prefer a “private launch” – for the first 30 days of the 90 day listing period in an attempt to attract investors from: • Employees • Shareholders Helping Your Clients Raise Capital Painlessly

42. Comments from some Intermediaries (cont’d…) • Customers • Suppliers • Family and friends of Shareholders and Senior Management • The benefit of a “private launch” is that it gives the company some external investors before going to the public Helping Your Clients Raise Capital Painlessly

43. Crowd Sourced Funding Offer Document Your accounting firm would normally coordinate the preparation of the Crowd Sourced Funding Offer Document (template and other supporting documentation included in ESS BIZTOOLS’ Product Package) Helping Your Clients Raise Capital Painlessly

44. Crowd Sourced Funding Offer Document Helping Your Clients Raise Capital Painlessly Ensure that all documents are appropriately filed – these have to be kept for at least 6 years Liaise with client and the Intermediary for the finalisation of the Crowd Sourced Funding Offer Document

45. Crowd Sourced Funding Offer Document Submit final Crowd Sourced Funding Offer Document to the Intermediary for uploading to the Intermediary’s website Helping Your Clients Raise Capital Painlessly

46. Communications Helping Your Clients Raise Capital Painlessly • Intermediary must operate a communications facility for the listing period • Communications could include Intermediary authorised: • Videos • Webinars • In-house presentations

47. Intermediaries Helping Your Clients Raise Capital Painlessly BillfoldaFinancialServices – Sydney www.billfolda.com Equitise– Sydney and Auckland www.equitise.com Big Start Capital – Perth www.bigstart.com.au

48. Intermediaries (cont’d…) Helping Your Clients Raise Capital Painlessly BirchalFinancial Service – Melbourne www.birchal.com On Market – Sydney www.onmarket.com.au Enable Funding – Adelaide www.enablefunding.com

49. Intermediaries (cont’d…) Helping Your Clients Raise Capital Painlessly • Capital Labs – Sydney www.capitallabs.com.au • AgCrowd – Sydney www.agcrowd.com.au • Plus 5 other companies

50. In Summary Helping Your Clients Raise Capital Painlessly • Crowd Sourced Funding is a great opportunity for some of your clients to go to the next level • Crowd Sourced Funding creates “new revenue stream opportunities” for proactive accountants