Update on Trade Finance FacilityThe Company refers to its ASX...

Update on Trade Finance Facility
The Company refers to its ASX announcements in respect to the progress of its trade finance facility for the purposes of funding the manufacture of LIFX inventory (dated 27 June 2019 and 2 July 2019) and provides the following update to shareholders. The trade finance facility is not yet complete and the availability of the facility remains subject to the execution of formal documentation (which are in final form) and the novation of customer contracts in favour of the financier.

While the novation of these contracts have taken much longer than Buddy had anticipated, they are progressing, noting that all parties remain motivated to finalise the trade finance facility as soon as possible and Buddy continues to have confidence that the formal documentation in respect to the trade finance facility will be executed in due course.

Shareholders should note that the Company has been building inventory out of cash on hand in lieu of this trade finance facility to ensure there are no inventory shortages. In the Company’s last Appendix 4C Quarterly Report dated 31 July 2019, Buddy disclosed having A$12.3 million (at cost, not retail value) of inventory on hand, which puts the Company in a strong inventory position. Importantly, even if the trade finance facility was available to Buddy, Buddy would not yet be drawing on it given its strong inventory position. The Company will continue to provide shareholders with an update on the progress of the trade finance facility by way of ASX announcements.