Wellington funding update

®
is a registered Trade Mark of Wellington Drive Technologies WT9257

Wellington Drive Technologies Ltd
P: +64 9 477 4500 E: info@wdtl.com
21 Arrenway Drive, Rosedale, Auckland 0632
PO Box 302-533 North Harbour, Auckland 0751, New Zealand
www.wdtl.com
25 October 2019

Wellington Drive Technologies funding update

Wellington announces fully supported rights issue to fund continued growth

Wellington Drive Technologies Limited (Wellington), a leading provider of Internet of Things (IoT) solutions
and energy efficient motors to the retail food and beverage industry, today announced its intention to raise
approximately $5.3m of new capital through a fully supported pro-rata rights issue. This announcement is
on the back of strong year-to-date results that demonstrates improving profit performance, plus an
expanding array of growth opportunities, including the recently announced new North American IoT project.

Wellington’s Capital Committee Chairperson, Gottfried Pausch commented "With continually improving
operating performance and an exciting funnel of growth opportunities the board believes now is the right time
to increase the company’s growth investment. We appreciate the support of those shareholders that have
committed to support this rights issue and we invite other shareholders to also participate. This new capital
will let Wellington accelerate its product development and business development capability, so that it can
grow revenue consistent with its 2023 growth target and further increase earnings and cash generation”.

Funding Details

To ensure Wellington can successfully execute new growth projects, continue to add the necessary skills in
sales and IoT engineering and successfully launch new products planned for 2020, Wellington intends to
raise approximately $5.3m from a pro-rata rights issue.
The key features of the offer include:
- Raise approximately $5.3m through a 1:5 pro-rata rights issue at 10 cents per new share;
- The offer is expected to close in November with the new shares issued early in December 2019;
- The issue is 100% committed with either underwrite agreements or firm pro-rata rights commitments.

Use of funds:
• New IoT business opportunity: Develop a new Connect SCS product and hire customer support
resources for the new IoT business opportunity with one of the largest manufacturers of commercial
coolers in the Americas (the opportunity previously disclosed in the company’s 2019 Interim report).
This new product has an approximate development cost of $1m to $1.5m. Revenue is estimated to
start Q4-2020, with full production revenues estimated at $2 to $4m annually from 2021. This project is
in the latter stages of negotiation. Wellington’s confidence at this stage of negotiations stems from the
fact there is an existing long-standing commercial relationship with this customer on another line of
business. The Wellington board has approved the commencement of early development work on
customer specific applications.

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• New Product Launches: Ensure the successful completion and launch of other new products
launching in 2020. New hardware includes the ECR2+, a new version of the successful ECR2 platform;
Connect SCS Black, a Connect IoT device specifically targeted at large scale new build coolers;
Connect Monitor, a new IoT device to allow retrofit in a broader range of coolers; Connect Network, a
new ‘always on’ IoT device; and new apps including one that helps store owners manage the in-store
cooler or display shelves.

• Develop the food service market: Fund entry into the food service market with new IoT hardware and
data solutions. Market entry has already commenced in New Zealand with SKOPE Industries. Deploy
sales and technical resources that are closer to the main USA market for food service.

• iProximity platform development: Market development in support of expanding the company’s
iProximity platform sales which includes technical marketing resources to explore new areas such as
smart venues and non-refrigeration based digital marketing. The expansion of iProximity sourcing
relationships to support the growth of proximity marketing devices used for non-refrigeration
customers.

• Expanding sales and technical capability: Expanding the USA and Western European sales teams
to win new customers for Wellington’s IoT solutions, ECR2 and ECR2+ motors. Continue the
expansion of the company’s software and hardware teams to improve capability and accelerate time to
market for new products.

• Repay high cost debt: Wellington has a $1m loan from Onimeg Investments Limited and a US$0.6m
loan from Meta Capital Limited which are both repayable on 31 March 2020. Proceeds from this issue
will be used to repay these loans on or before the due dates resulting in annualised savings of $250k in
interest costs. Total annualised savings including the partial repayment of the Onimeg loan in
September 2019, is approximately $500k.

This rights issue has been approved by the independent Directors of Wellington.

Governance note
Acting Chairman John McMahon is the sole director and shareholder of Meta Capital Limited. Meta Capital
has loaned US$0.6 million to Wellington on arms-length terms and this loan is due for repayment on 31
March 2020. Part of the proceeds of the capital raising will contribute towards repayment of this loan. In
addition, Mr McMahon is a director of NZX Limited, the parent company of Smartshares Limited, which is a
substantial product holder of Wellington with 27.478% of the issued ordinary shares of Wellington as at 6
June 2018 (being the date of its most recent substantial product holder disclosure). Given these factors, Mr
McMahon is deemed to be “interested” in the Offer. Accordingly, he has not participated in discussions or
information where a conflict of interest may arise and has been recused from all Wellington Board decisions
relating to the Offer. Mr McMahon is not an independent director of Wellington.

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About Wellington Drive Technologies:
Wellington is a leading provider of IoT solutions, cloud-based fleet management platforms, energy-
efficient electronic motors and connected refrigeration control solutions. It serves some of the world’s
leading food and beverage brands and refrigerator manufacturers and offers proximity-based marketing
for Smart Cities to the Australian market. Wellington’s services and products improve sales, decrease
costs and reduce energy consumption. Headquartered in Auckland with a global reach, Wellington is
listed on the New Zealand stock exchange under the ticker symbol NZ:WDT
For further information visit www.wdtl.com




Contact:

Greg Allen Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone +1-778-238-6494 +64 27 587-0455

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®
is a registered Trade Mark of Wellington Drive Technologies WT 9256

Wellington Drive Technologies Ltd
P: +64 9 477 4500 E: info@wdtl.com
21 Arrenway Drive, Rosedale, Auckland 0632
PO Box 302-533 North Harbour, Auckland 0751, New Zealand
www.wdtl.com







25 October 2019



Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington 6011


For Immediate Release
Notice pursuant to clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct
Regulations 2014

Wellington Drive Technologies Limited (WDT) has announced that it proposes to undertake a pro rata
renounceable rights issue (Offer) of new ordinary shares (New Shares). The Offer will be made to eligible
WDT shareholders (being those New Zealand resident shareholders recorded on WDT’s share register as at
5.00 pm, 5 November 2019 (Record Date)) (Eligible Shareholders) who will be entitled to subscribe for
one New Share for every five ordinary shares held at the Record Date on payment of $0.10 per New Share.
The Offer is partially underwritten as to approximately 70% of the aggregate total proceeds being offered.
Pursuant to clause 20(1)(a) of Schedule 8 of the Financial Markets Conduct Regulations 2014
(Regulations), WDT states that:
1. WDT is making the Offer in reliance upon the exclusion in clause 19 of Schedule 1 of the Financial
Markets Conduct Act 2013 (FMCA).
2. WDT is giving this notice under clause 20(1)(a) of Schedule 8 of the Regulations.
3. As at the date of this notice, WDT is in compliance with:
(a) the continuous disclosure obligations (as defined in the Regulations) that apply to it in relation to
WDT’s listed ordinary shares; and
(b) its “financial reporting obligations” within the meaning set out in clause 20(5) of Schedule 8 of
the Regulations.

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2
4. As at the date of this notice, there is no information that is “excluded information” within the meaning set
out in clause 20(5) of Schedule 8 of the Regulations.
5. The Offer is not expected to have any effect or consequence on the control of Wellington.

___________________________________________________________________________
Contact:
Greg Allen Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone +1-778-238-6494 +64-9-414-6590

---

®
is a registered Trade Mark of Wellington Drive Technologies WT 9268

Wellington Drive Technologies Ltd
P: +64 9 477 4500 E: info@wdtl.com
21 Arrenway Drive, Rosedale, Auckland 0632
PO Box 302-533 North Harbour, Auckland 0751, New Zealand
www.wdtl.com



25 October 2019

Section 1: issuer information (mandatory)
Name of issuer Wellington Drive Technologies Limited
Class of Financial Product Ordinary shares
NZX ticker code WDT
ISIN (If unknown, check on NZX website) NZWDTE0002S1
Name of Registry Computershare Investor Services Ltd
Type of corporate action
(Please mark with an X in the relevant
box/es)
Share purchase
plan
Renounceable
Rights issue


Capital
reconstruction
Non
Renounceable
Rights issue

Call Bonus issue
Record date 5.00 pm, 5 November 2019
Ex-Date (one business day before the
Record Date)
4 November 2019
Currency NZD
Section 2: Rights issue

Number of Rights to be issued 52,628,670
2

Number of Financial Products to be issued
under the Rights issue
52,628,670
2
ordinary shares
ISIN of Rights Security (if applicable) NZWDTE0011S2

Minimum entitlement N/A
Entitlement ratio (for example 1 for 2) New 1 Existing 5
Treatment of fractions Fractions rounded down
Subscription price $0.10 per new share
Letters of entitlement mailed 7 November 2019
Offer close 5.00 pm, 25 November 2019

WT 9268

2
Quotation Date
1
(if applicable) 4 November 2019
Allotment Date 29 November 2019
Section 7: Authority for this announcement (mandatory)
Name of person authorised to make this
announcement
Howard Milliner
Contact person for this announcement Howard Milliner
Contact phone number 09 477 4500
Contact email address Howard.Milliner@wdtl.com

Date of release through MAP 25 October 2019








1
The Quotation date for Rights will be the Ex Date.
2.
Certain employees are existing holders of rights to acquire shares under (1) the Wellington Partly Paid Share Scheme;
and (2) the US Option Plan. If all the relevant rights were exercised, resulting in new shares being issued to those
persons on or before the Record Date, this would increase the number of New Shares available for subscription under
the Offer by 1,978,559. Further details on the Wellington Partly Paid Share Scheme and the US Option Plan are
included in Wellington’s most recent annual report.