ASX IPO NOW LIVE Key Points Vonex s ASX IPO to raise up to $7 million is now live To view the IPO Prospectus and apply online visit https://investors.vonex.com.au/offer/ Nearly fully underwritten by State One Equities Pty Ltd to $5.5 million. Priority Offer for existing Vonex Shareholders Investment Highlights Vonex consists of three core businesses: o Vonex Wholesale sold on a white label basis to clients. Supplies wholesale customers with PBX endpoints, voice minutes and advanced PBX features, which are on-sold under their own brand. o Vonex Telecom full-service telecommunication service provider selling mobile, internet, business phone systems and hosted PBX. These services are sold direct through Vonex or via affiliates (Channel Partners). o Development and engineering the voice engineering department which maintains and develops products to keep Vonex ahead of the market. Highly scalable business model, achieving $6.12 million revenue for Retail Division (FY2017) and $1.16 million for the Wholesale Division (FY2017). Divisions reported a 28% increase in sales revenues for FY2017 (2016: 20% and 2015: 22%). Significant opportunities in Australia Vonex strategically placed to benefit from NBN rollout by targeting SME s. The Offer Funds raised from Offer to be used for: o Marketing of its SME retail and wholesale white label PBX businesses; o development of its world-first telecommunication applications aggregator solutions to the telecom industry, the Oper8tor app, Offer opened today, 28 March 2018 and closes on 13 April 2018; and Expects to commence trading on ASX on 26 April 2018, under the ticker VN8. 28 th March 2018: High-tech, innovative telecommunications service provider Vonex Limited ( Vonex or the Company ) is pleased to announce that its IPO prospectus with the Australian Securities and Investments Commission ( ASIC ) through the issue of up to 35 million shares at an issue price of $0.20 per share to raise up to $7 million before costs ( Prospectus ) is now live.
The Prospectus Offers have a minimum subscription of 30 million shares to raise $6 million before costs. The offer includes a priority offer of up to 5 million shares on the same terms to existing Vonex shareholders. All valid applications under the Offers will entitle the applicant to 1 free attaching option for every 4 shares subscriber for, with an exercise price of $0.20 per option within two years from date of issue ( Attaching Options ). The Company intends to seek quotation of the Attaching Options to ASX. The Offers opened today, 28 th March 2018 and closes on 13 th April 2018 (Priority Offer closes 5 th of April 2018) with proceeds primarily used for the development of Vonex s SME retail and wholesale white label PBX businesses as well as the development of its Oper8tor app. Overview of Vonex Vonex is a full service, award-winning telecommunications service provider selling mobile, internet, traditional fixed lines, hosted PBX and VoIP services predominately to the small to medium enterprise customers under the Vonex brand. The Company also provides wholesale customers, such as internet service providers, access to the core Vonex PBX and call termination services at wholesale rates via a white label model. Vonex is also a leader in developing world-first technological solutions to the telecom industry. The company s business model is made up of three core businesses: Vonex Telecom The retail division of Vonex which is a full-service telecommunication service provider selling hosted PBX services, as well as traditional mobile, internet and business phone systems. These services are either sold direct through Vonex or via affiliates (Channel Partners) specifically targeting SMEs. Vonex Wholesale the product is sold on a white label basis to clients who are typically ISP s, carriers, larger telco s and cloud service providers. Supplies wholesale customers with PBX endpoints, voice minutes and advanced PBX features, which are on-sold under their own brand. Development and engineering the voice engineering department which maintains and develops products to keep Vonex ahead of the market. This is the engineering and creative hub of the organisation where the Company s intellectual property is developed and tested before patents are lodged and the product is commercialised. Oper8tor, World-First Technology Vonex has developed one of the most advanced hosted PBX systems on the market, delivering the latest in innovative features to the business customer otherwise unachievable using conventional phone systems. What sets it apart from other PBX systems is Vonex s technology cuts the time of deploying PBX systems into offices from weeks to a matter of minutes. This has the potential to save companies thousands of dollars in
setup costs as well as generating considerable savings in their telecommunications expenses ongoing. The Company is also developing a ground-breaking app that will re-invent communications worldwide. Oper8tor is a multi-platform aggregator for real-time voice, messaging and social media app that allows users to connect with all social media friends, followers and contacts across different social medias, all consolidated into one app. The product has a target market of both consumers and providers and can be deployed worldwide. The IP behind the Oper8tor App is owned by Vonex who have applied for a patent in respect of the technology. The mobile app may significantly increase Vonex s minutes sold due to its voice interoperability between other communication platforms and Apps. The more competitors entering the market, the greater the need for the Oper8tor App as a single App that allows individuals to talk to other users across multiple platforms and Apps. Network Vonex s network infrastructure services a majority of the world s regions including Jakarta, Singapore, London, California, New York, Washington DC, Sydney and Perth. The Company s objective is to expand into several new regions to become a truly global telecommunications company. The Opportunity in Australia The Australian telecommunications industry is undergoing a significant change. The rollout of the National Broadband Network ( NBN ) in Australia is well under way with initial network construction phase of 11.6 million premises complete by 2020 (NBN Corporate Plan 2017). Having met the commitment to prioritise under-serviced areas initially, the main focus is now on moving to metropolitan areas where population density provides for a higher target market of SMEs. As existing non-fibre telecommunications infrastructure will no longer be supported, customers are required to arrange to connect via a retailer to the NBN network which as a primarily fibre network is providing end users with the option to use VoIP technologies benefitting from faster connection speeds. Vonex is an NBN retailer specialising in Voice over the Internet ( VoIP ) and is in a strong strategic position to capitalise on servicing these SME customers as a primary target market. Vonex Non-Executive Chairman Nicholas Ong said: It is a very exciting time to be a part of this Company as it expands its offering not only in the wholesale and retail businesses but in our technology division. We are on the cusp of developing the world-first Oper8tor app, allowing users to connect with all social media friends, followers and contacts across different social medias, all consolidated into one app. As an NBN retailer specialising in Voice over the Internet, we are also very well positioned to capitalise on servicing SME customers as a primary target market as the roll-out of the NBN moves into metro areas and begins to target SME s. Financial position
The audited revenue results of the Wholesale and Retail telecommunications divisions reported $3.4 million for Retail covering the half year ended 31 December 2017 (2016: $2.88 million and 2015: $2.12 million) and $0.53 million for the Wholesale division covering the half year ended 31 December 2017 (2016: $0.48 million and 2015: $0.40 million). The audited revenue results of the Wholesale and Retail telecommunications divisions reported $6.12 million for Retail covering the financial year ended 30 June 2017 (2016: $4.68 million and 2015: $3.87 million) and $1.16 million for the Wholesale division covering the financial year ended 30 June 2017 (2016: $1.32 million and 2015: $0.99 million). Key Offer Details Proposed ASX code VN8 Offer Price per New Share $0.20 Shares on issue at date of Prospectus 65,964,949 New Shares offered under this Prospectus to raise up to $7,000,000 at an issue price of $0.20 per Share New free attaching Options (exercisable at $0.20 on or before 2 years from date of issue) offered under this Prospectus 35,000,000 8,750,000 Number of Shares to be issued upon conversion of the Convertible Notes 1 17,526,989 Conversion of Performance Rights 2 7,438,000 Conversion of Class B and Class C Performance Shares 3 26,666,622
Total Shares on issue following Offer Up to 157,596,560 Gross proceeds from the Offer Up to $7,000,000 Indicative Timetable Lodge Replacement Prospectus with ASIC 26 March 2018 Priority Offer Record Date 9 March 2018 Opening Date of the Offers 28 March 2018 Closing Date of the Priority Offer 5 April 2018 Closing Date of the Public Offer 13 April 2018 Issue of Shares under the Prospectus 20 April 2018 Expected Quotation of Shares on the ASX 26 April 2018 The above dates are indicative only and subject to change. For more details, please contact: Matthew Fahey Managing Director Vonex Ltd Nicholas Ong Non-Executive Chairman Vonex Ltd E: matt@vonex.com.au E: nick@vonex.com T: +61 411 244 224 T: +61 424 598 561 David Tasker Managing Director Chapter One Advisors E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936