“SME Capital Raising – Advisors Need to Know the Details!”

1. “SME Capital Raising – Advisors Need to Know the Details!” Presented by: Peter Towers, Managing Director, ESS BIZTOOLS

2. The New Capital Raising Process! • Crowd Sourced Funding Equity Raising • Proprietary Limited Companies and Unlisted Public Companies • Group turnover under $25 million annually • Group asset value under $25 million SME Capital Raising: Advisers Need To Know The Details

3. The New Capital Raising Process! • Not listed on a Stock Exchange anywhere in the World • Not listed on a finance market SME Capital Raising: Advisers Need To Know The Details

4. Interview with Andrew Geddes • Former Greencross Limited Chair • Consultant to Australian and New Zealand Accounting Industry SME Capital Raising: Advisers Need To Know The Details

5. Wake-Up Call “Crowd Sourced Funding Equity Raising, could be a real wake-up call for small and medium sized companies to expand” – Andrew Geddes former Greencross Limited chair “Raising capital places a lot of pressure on businesses to justify that they are worth lending to” SME Capital Raising: Advisers Need To Know The Details

6. Wake-Up Call To raise capital companies have to go through a lot of disciplines to get their “ house in order” Investors want to see a complete presentation so that they can gain an understanding of where the company’s directors and senior management want to take this business SME Capital Raising: Advisers Need To Know The Details

7. What Documentation is Required? A well documented Business Plan that the entire team has been involved in the development of Budgets and Cash Flow Forecast Identification of the corporate vision What is the company’s purpose? SME Capital Raising: Advisers Need To Know The Details

8. What Documentation is Required? What are the company’s goals? Identification of the strategies required to achieve the company’s goals Who are the customers? – Demographics – preferences – testimonials to support the company SME Capital Raising: Advisers Need To Know The Details

9. What Documentation is Required? Introduction to the company’s directors Corporate Chart with introductions to the senior management team Identification of the company’s intellectual property and details of any patents that have been applied for SME Capital Raising: Advisers Need To Know The Details

10. Plan the Process • This process is not easy and it requires significant input and time from directors and senior managers • Directors and managers must have some “ownership of the vision” SME Capital Raising: Advisers Need To Know The Details

11. Plan the Process • Businesses should be involving their accountants in this process and indeed the accountants could facilitate the entire planning process SME Capital Raising: Advisers Need To Know The Details

12. Plan the Process • Undertaking this process will assist in clarifying whether the company is ready to start raising capital or perhaps the outcome is an identification of further work to be undertaken SME Capital Raising: Advisers Need To Know The Details

13. What’s Happening in the Marketplace? • The new law which enabled proprietary companies to raise capital of up to $5M in a 12 month period from the public commenced from 19 October 2018 • Over $30M has been raised by 36 companies SME Capital Raising: Advisers Need To Know The Details

14. What’s Happening in the Marketplace? • There is an expectation that significant capital raising will be achieved from now on • “Crowd sourced funding is one of the most exciting developments for SMEs in a generation” – Andrew Geddes SME Capital Raising: Advisers Need To Know The Details

15. IPO to Reduce? • “Launching an IPO typically costs up to $1M – but the average crowd sourced funding equity raising will cost less than 20% of that” – Andrew Geddes • For most small and medium sized companies it is likely to be far more affordable to start the process as a Crowd Sourced Funding Company SME Capital Raising: Advisers Need To Know The Details

16. IPO to Reduce? There is an expectation that some of the companies that are contemplating undertaking an IPO may now elect to start the process with Crowd Sourced Funding Equity Raising SME Capital Raising: Advisers Need To Know The Details

17. Accountants – Develop a New Income Stream • There is an opportunity for accountants to offer a broader range of services to assist small and medium-sized enterprises to become “investment ready” SME Capital Raising: Advisers Need To Know The Details

18. Accountants – Develop a New Income Stream • “I think it’s really important for accountants and their clients to fully understand the pros and cons of crowd sourced funding, and the best way to do that is to begin with research” – Andrew Geddes • “The ESS BIZTOOLS’ website contains a lot of information and is a good place to get started” SME Capital Raising: Advisers Need To Know The Details

19. Businesses Need an Understanding of the Entire Process How do we go about this? What documents are required? Who is a Crowd Sourced Funding Intermediary? What is the Intermediary’s role? SME Capital Raising: Advisers Need To Know The Details

20. Businesses Need an Understanding of the Entire Process How do I select an Intermediary? Preparing the Crowd Sourced Funding Offer Document SME Capital Raising: Advisers Need To Know The Details

21. Businesses Need an Understanding of the Entire Process Submitting the final Crowd Sourced Funding Offer Document to the Intermediary Going live on the appointed Intermediary’s website SME Capital Raising: Advisers Need To Know The Details

22. Is Raising Capital Worthwhile from a Business’ Point of View? Let’s hear the comments from a CEO of a small proprietary company that has raised nearly $600,000 as a Crowd Sourced Funding Equity Company in addition to raising capital under Section 708 of the Corporations Act SME Capital Raising: Advisers Need To Know The Details

23. Is Raising Capital Worthwhile from a Business’ Point of View? Ben Kooyman CEO of Endeavour Brewing Co, the Rocks, Sydney SME Capital Raising: Advisers Need To Know The Details

24. What Assistance Is Available? • A complete Crowd Sourced Funding Equity Raising Product Package is included within ESS BIZTOOLS. For more information please click on to www.essbiztools.com.au/crowd sourced funding/learn more SME Capital Raising: Advisers Need To Know The Details

25. What Assistance Is Available? • For business operators you can access a range of free and paid subscriptions on Crowd Sourced Funding Equity Raising by clicking on to www.esssmallbusiness.com.au/crowd sourced funding SME Capital Raising: Advisers Need To Know The Details

26. What Assistance Is Available? • If you would like to obtain a copy of the free “White Paper – Crowd Sourced Funding Equity Raising “ click on to www.essbiztools.com.au or for business operators please click on to www.esssmallbusiness.com.au SME Capital Raising: Advisers Need To Know The Details

27. Additional Questions? Contact Peter: Email: peter@essbiztools.com.au Telephone: 1800 232 088 SME Capital Raising: Advisers Need To Know The Details