Ann: Proposed issue of securities - EIQ, page-3

Here’s a (AI) breakdown of what the announcement says and how it impacts existing shareholders:

Who are the shares (options) being issued to?

• These are options being issued for corporate services.
  This means they are most likely being issued to a service provider (such as a consultant, advisor, or contractor) as part of a compensation package rather than as a capital raise for the company. This is common when companies want to conserve cash but still reward external parties who provide services.

Are these options that are due to expire?

• No, these are new options being issued.
  The options will have an expiry date of 4 March 2028 and an exercise price of $0.35. This is not related to any options that are currently expiring.

Important notes:

• The options are being issued under Listing Rule 7.1, meaning they are part of EchoIQ’s 15% placement capacity and do not require shareholder approval.
• The options are not being issued to any related party (like directors) under Listing Rule 10.11.
• No voluntary escrow applies, so if the options are exercised, the resulting shares could be freely traded.
• The dilution impact is relatively small (1.5 million options in a company that already has hundreds of millions of shares on issue). However, it's still dilution nonetheless.