LiveTiles secures $10m debt facility to drive strategic...

LiveTiles secures $10m debt facility to drive strategic growth

LiveTiles Limited (ASX:LVT) (LiveTiles or the Company), a global leader in Employee Experience
workplace software, is pleased to announce it has finalised terms and signed an Agreement to a threeand-a-half year AUD $10 million secured loan facility (the Facilities) with Sydney-based venture capital firm OneVentures (the Lender), through the OneVentures Credit Fund.
The Facilities will assist LiveTiles with the funding required for its future investment strategies,
continuing to deliver on its new product developments, along with any working capital and
operational requirements that may arise whilst working to create further efficiencies within the
business.

Key terms of the Facilities include:
The Facility will initially be structured as an AUD $6 million term loan facility and immediately
available. Shareholder approval, and the approval from the ASX, will then be sought to:
• Increase the Facility limit to AUD $10 million, drawn in two tranches of the initial $6 million
first tranche and up to a further $4 million for the second tranche.
• Issue under the facility convertible notes to OneVentures up to a maximum of $4 million
(noting that if the second $4 million tranche is not drawn in full, convertible notes will only
constitute a maximum 40% of all funds drawn). The convertible notes will convert to
ordinary class shares at a $0.20 conversion price.
• If the Company repays the convertible notes early, then there will be a replacement of the
convertible notes with a call option, under which the Lender (or its affiliate) may be issued
with the same number of ordinary class shares, as those which would have been issued to
the Lender (or its affiliate) under the convertible notes, at the same $0.20 exercise price per
share.

The Facility also has the following principal commercial terms:
• First ranking general security over all the assets of the Company and subsidiaries.
• No material financial or operating covenants. However, a minimum liquidity requirement of
AUD $6 million in funds remaining in Australia until such time as all security agreements (or
local equivalents) in respect of the Company’s foreign subsidiaries are in place.
• Fixed interest rate on drawn amounts of 13.5%, reducing to 9.5% p.a. upon ASX and
shareholder approval being provided. The term loan component has an 18-month term with
interest-only payment period, convertible notes will be interest only for their entire term.
• The conversion price for the convertible notes, and exercise price of the option, has been
calculated based on a 35% premium to the 30 day volume weighted average price, measured
prior to the date the Facility Agreement is signed (in an amount agreed between the parties).
¹Convertible Notes shareholder approval
The Company wishes to advise, that in accordance with s 260B of the Corporations Act, the Company
will be seeking 75% shareholder approval at the upcoming 2021 AGM on 30th November 2021, for
the purposes of granting financial assistance in relation to the issuance of Convertible Notes to the

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Lender.
Should the required amount of shareholder approval not be obtained, the Company wishes to advise
that the following key terms of the Facilities will instead apply for the term of the Facilities.
• AUD $6 million term loan structured as 100% Debt and drawdowns available over two
tranches.
• Fixed interest rate of 13.5% p.a. on drawn amounts and an 18-month term with interest-only
payments to be made monthly in arrears.
• Additional fees incurred on completion of the loan.

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach states: ‘We are pleased to be
working with OneVentures, a leading Australian Venture Capital firm and lender that understands
our business and is fully supportive of our growth initiatives and investments strategy.
The new facilities are very timely and help set the Company up to achieve its stated strategic goals.
The broadening capital structure of the Company with a new source of funding will complement the
Company’s plans to continue to generate cost efficiencies across the group, further strengthen its
cash position and enable LiveTiles to pursue both inorganic and organic growth opportunities

OneVentures Partner, Nick Gainsley said: “We are pleased provide this credit facility to LiveTiles
and join them on their journey. LiveTiles is a market leader in the Employee Experience space where
we see significant global growth potential as organisations seek ways to better communicate with
increasingly distributed workforces and enable digital interaction. The credit facility will enable the
company to invest further in growth.”