Ann: Cornerstone investment by Capricorn raises $7.175m, page-10

Benefits of the Announcement from my perspective:

Financial Boost: The $7.175 million investment significantly strengthens Spenda's financial position, enabling the company to pursue its commercial ambitions and further develop its software solutions.

Strategic Partnership: The binding agreement reflects Capricorn's confidence in Spenda's payment software and establishes a strategic partnership, leveraging the extensive network and purchasing power of Capricorn's 26,000 members (BIG WIN).

Long-Term Agreement: The 10-year MSLA with Capricorn provides a stable foundation for both companies to collaborate on joint initiatives, fostering long-term growth and digitisation in the automotive industry.

Revenue Generation: With a minimum expected revenue of $2 million in 2024 and the anticipation of significant software revenues as Spenda's software is rolled out to Capricorn's extensive member base, the investment is poised to contribute to Spenda's revenue growth.

Share Placement: The private placement involves issuing 592,975,206 shares at an issue price of $0.0121 per share. This will represent 13.75% of the company's issued share capital, and the funds raised will be used for product development and general working capital.

Board Representation: Capricorn's investment comes with the right to nominate a director to the Spenda Board, facilitating collaboration and alignment of interests (good business practice).

Investor Participation: The agreement includes provisions for Capricorn's participation in future securities issuances to maintain its interest in Spenda, as well as matching rights in certain change of control proposals.

Customary Terms: The agreement incorporates customary terms, including representations and warranties, ensuring a standard framework for the partnership.

Renegotiation: The renegotiation of previously proposed investment terms signifies a commitment from both parties to reach mutually beneficial agreements.

In summary, the announcement of Capricorn's cornerstone investment provides Spenda with financial strength, strategic partnership opportunities, and the means to accelerate its growth in the automotive industry through innovative software solutions.