Ann: Corporate Update February 2021, page-2

How good is this? Only a small acquisition but a strong showing of management's intent.

In order to assist the Company and this new business unit in particular, to fast-track the growth

in capabilities and footprint, Parkway Process Solutions has agreed to acquire a small but

profitable water treatment business based in Western Australia. The business being acquired

has been in operation for over a decade, has an established client base with approximately

100 customers and provides the Company with significant and immediate growth

opportunities, in line with Company’s aspirations for Parkway Process Solutions. The business

being acquired has generated annual revenues in the order of $1 million, including in the most

recent reporting period (FY20). The upfront acquisition cost (inclusive of on-site plant,

equipment and stock) is $420,000 before adjustments, with a further payment of up to

$100,000 payable at the 12-month anniversary, should the underlying business continue to

generate net revenues of at least $1 million in the 12 months, immediately following

settlement. The Company intends to provide further details upon completion of the acquisition

which is currently scheduled to occur later this month.