Capital Raising 2012

REDFLOW ANNOUNCES INTENTION TO UNDERTAKE A FULLY UNDERWRITTEN CAPITAL RAISING TO RAISE APPROXIMATELY A$4.9 million

Redflow Limited (Company) is pleased to announce that it intends to raise approximately A$4.9 million before costs via a fully underwritten pro-rata non-renounceable entitlement offer.

The entitlement offer consists of a fully-underwritten pro-rata non-renounceable entitlement offer of one new share for every share held at an issue price of $0.06 per new share (Entitlement Offer). The Entitlement Offer is fully underwritten by RBS Morgans Corporate Limited (Underwriter).

Eligible shareholders may also apply for new shares in excess of their entitlement, although any application for additional new shares may be scaled back at the Company’s discretion. Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable.

Under the Entitlement Offer the Company will issue up to 81,711,672 new shares.

Participation in the Entitlement Offer will be offered to shareholders with registered addresses in Australia, New Zealand, United Kingdom, Hong Kong and Singapore as at the record date of 7.00pm (Brisbane time) on 23 August 2012. The Offer will be conducted in accordance with section 708AA of the Corporations Act 2001 (Cth). Eligible shareholders will receive an entitlement offer booklet including a personalised entitlement and acceptance form which will provide further details of how to participate in the Entitlement Offer.

The directors of the Company intend to take up their entitlements in part or full under the Entitlement Offer.

The proceeds of the capital raising will go towards working capital purposes to execute the Company’s strategy as disclosed to the market for the current financial year.

The Entitlement Offer will be open between Monday 27 August 2012 and 5.00pm on Monday 10 September 2012. Further details relating to the Entitlement Offer, including how to participate, will be provided in the offer booklet which will be mailed to eligible shareholders on or about 27 August 2012. You may wish to obtain professional advice to assist you with your decision to take-up your entitlement.

Following the Entitlement Offer, the Company will have fully paid issued capital of approximately 163,423,344 ordinary shares.

Indicative timetable*

Record Date to determine Entitlements 7pm (Brisbane time) on 23 August 2012
Entitlement Offer Booklet and Entitlement and
Acceptance Forms despatched
Opening date of the Entitlement Offer
27 August 2012
Closing Date — last date for lodgement of
Entitlement and Acceptance Forms and payment
of Application Money
5pm (Brisbane time) on 10 September
2012
Trading of New Shares expected to commence
on a deferred settlement basis
11 September 2012
Issue of New Shares 18 September 2012
Holding statements for New Shares expected to
be despatched
18 September 2012
Normal trading of New Shares expected to
commence on ASX
19 September 2012

 

* The Company reserves the right, subject to the Corporations Act, the Listing Rules and other applicable laws, to vary the dates of the Entitlement Offer (including extending the Entitlement Offer or accepting late applications) without notice.

The Directors thank you for your ongoing support of the Company.

Howard Stack,
Chairman

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