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ikeGPS 2020 Notice of Meeting

AGM9 September 2020IKEMaterials

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PROXY FORM FOR THE 2020 ANNUAL MEETING

The Annual Shareholders Meeting of ikeGPS Group Limited (“ikeGPS Group Limited”) will be held online via the Link Market

Services Virtual Meetings Platform at www.virtualmeeting.co.nz/ike20 on Tuesday 29 September 2020 at 2pm (New Zealand

Standard Time). Due to Covid-19 and the location of Directors, IKE will hold its Annual Meeting of Shareholders online only. For

your proxy to be effective it must be received by 2pm (New Zealand Standard Time), Sunday 27 September 2020.

APPOINTMENT OF PROXY

If you do not plan to attend the meeting, you may appoint a

proxy. The Chairman of the meeting or any other director is

willing to act as proxy for any shareholder who appoints

him or her for that purpose. If, in appointing your proxy,

you do not name a person as your proxy (either online or

on this Proxy Form), or your named proxy does not attend

the meeting, the Chairman of the meeting will be your proxy

and may vote only in accordance with your express

direction.

Voting of your holding

Direct your proxy how to vote by making the appropriate

election, either online or on this Proxy Form, in respect of

each item of business (resolutions 1 to 5). If you do not make

an election in respect of a resolution your proxy may vote as

they choose.

If you make more than one election in respect of a resolution

your vote will be invalid on that resolution.

Appointing the Chairman of the meeting or a director as your proxy

If you expressly appoint the Chairman of the meeting or any

other director as your proxy and elect to give them

discretion on how to vote on a resolution, you acknowledge

that they may exercise your vote (unless a voting restriction

applies) even if they have an interest in the outcome of

that resolution. The Chairman of the meeting and the

directors intend to vote all discretionary proxies in favour

of resolutions 1 to 4.

Voting Exclusions

No vote may be cast by directors or any of their respective

associated persons in favour of Resolution 5. A director, or

an associated person of a director, who has been appointed

as proxy or representative for another shareholder who is

not disqualified from voting in favour of Resolution 5 may



exercise that vote only in accordance with the express

instructions of that shareholder given in the proxy form. A

director, or an associated person of a director, may not

exercise any discretionary proxy votes in favour of Resolution

5.

ATTENDING THE MEETING

The Annual Meeting will be held online only at

www.virtualmeeting.co.nz/ike20. If you wish to vote in

person, you should attend the meeting online. If you will

attend the Meeting online, you will require your CSN/Holder

Number for verification purposes. A corporation may appoint

a person to attend the meeting as its representative in the

same manner in which it would appoint a proxy.

SIGNING INSTRUCTIONS FOR PROXY FORMS

Individual

Where the holding is in one name, the security holder must

sign.

Joint holding

Where the holding is in more than one name, either of the

security holders (or their authorized power of attorney)

may sign.

Power of Attorney

If this Proxy Form has been signed by an attorney, a copy of

the power of attorney under which it was signed (if not

previously provided to the Registrar), and a signed certificate

of non-revocation of the power of attorney must accompany

this Proxy Form.

Company

This Proxy Form must be signed by a duly authorised officer

or attorney. Persons who sign on behalf of a company must

be acting with the company’s express or implied authority.


Go online to http://vote.linkmarketservices.com/IKE to appoint and give directions to your proxy or turn over to complete the form.

Question:
PROXY/CORPORATE REPRESENTATIVE FORM


STEP 1: APPOINT A PROXY TO VOTE ON YOUR BEHALF

I/We being a shareholder/s of ikeGPS Group Limited


Hereby appoint of


or failing him/her of


as my/our proxy to act generally at the meeting on my/our behalf and to vote in accordance with the following directions (or if

no directions have been given, the proxy will vote as he/she sees fit, subject to any applicable restrictions in the NZX Main

Board Listing Rules) online at www.virtualmeeting.co.nz/ike20, on Tuesday 29 September 2020 at 2pm (New Zealand

Standard Time) and at any adjournment of that meeting. If you wish, you may appoint as your proxy ‘The Chairman of the

Meeting’ or any other director.

STEP 2: ITEMS OF BUSINESS – PROXY VOTING INSTRUCTIONS

Please note: If you mark the Abstain box for an item, you are directing your proxy not to vote on your behalf the poll

during the meeting and your votes will not be counted in computing the required majority.


To consider and, if thought fit, to pass the following ordinary resolutions:


Item 1 That the directors are authorised to fix the auditor’s remuneration.

Item 2 That Mr Mark Ratcliffe, appointed by the Board as a director effective

1 January 2020 and who retires and is eligible for election, is elected

as a director of ikeGPS Group Limited.


Item 3 That Mr Fred Lax is re-elected as a director of

ikeGPS Group Limited.


Item 4 That Mr Rick Christie is re-elected as a director of

ikeGPS Group Limited.


Item 5 That the Board of ikeGPS Group Limited (the Board) is authorised,

pursuant to Listing Rule 4.2.1, to:

(a) issue up to 3,000,000 options to subscribe for ordinary shares in the

Company (Options), to employees and directors of the Company on the

terms set out in the Explanatory Notes accompanying the Notice of

Meeting; and

(b) take all actions, do all things and execute all documents and agreements

considered by the Board to be necessary to give effect to the issue

of the Options.

STEP 3: SHAREHOLDER QUESTIONS

Shareholders present at the Annual Shareholders Meeting will have the opportunity to ask questions during the meeting. If

you cannot attend the Annual Shareholders Meeting but would like to ask a question you can submit a question online by

going to http://vote.linkmarketservices.com/IKE and completing the online validation process or complete the question

section below and return to Link Market Services in the reply paid envelope enclosed. Questions will need to be submitted by

Sunday 27 September 2020. The Board will address and answer questions at the Annual Shareholders Meeting.


SIGN: SIGNATURE OF SHAREHOLDER(S) This section must be completed.


Shareholder 1 Shareholder 2 Shareholder 3

or duly authorised officer or attorney or duly authorised officer or attorney or duly authorised officer or attorney


Date Daytime P h on e n um b er


Electronic Investor Communications:

If you received the Notice of Meeting & Proxy by mail and wish to receive your future investor communications by email please provide your

email address below.



FOR

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PROXY

DISCRETION

ABSTAIN

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Page | 1




















Notice of Annual Shareholders Meeting

ikeGPS Group Limited (‘the Company’)


















For Immediate Release

Date: September 9, 2020


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1. Notice

Dear Shareholder

Due to the current Covid-19 situation, ikeGPS Group Limited (“IKE” or “the Company”) will hold its

Annual Shareholders Meeting virtually. We invite you to join us for the virtual meeting.

Where: Link Market Services Virtual Meeting Platform at www.virtualmeeting.co.nz/ike20

When: Tuesday 29 September 2020 at 2pm (New Zealand time)

Shareholders attending the meeting online will be able to vote and ask questions at the meeting.

Shareholders can also pre-submit questions either online at vote.linkmarketservices.com/IKE or using

the Proxy Form. Questions will need to be submitted by 2pm (New Zealand time) on Sunday 27

September 2020.

If you cannot attend the virtual meeting, I encourage you to complete and lodge the Proxy Form in

accordance with the instructions on that form so that it reaches Link Market Services by 2pm (New

Zealand time) on Sunday 27 September 2020.

2. Items of business

The business of the meeting will be:

The Chairman’s introduction

Address to shareholders

Shareholder discussion

Financial Statements

• To receive and consider the financial statements of the Company for the year ended 31

March 2020, together with the auditor’s report on such financial statements, both as

contained in the Company’s 2020 Annual Report.

Resolutions:

The shareholders of the Company are requested to consider and, if thought fit, to pass the following

ordinary resolutions:

1. Auditors Remuneration: That the directors are authorised to fix the auditor’s remuneration.

2. Election of Mr Mark Ratcliffe: That Mr Mark Ratcliffe, appointed by the Board as a director effective

1 January 2020 and who retires and is eligible for election, is elected as a director of ikeGPS Group

Limited.

3. Re-election of Mr Fred Lax: That Mr Fred Lax is re-elected as a director of ikeGPS Group Limited.


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4. Re-election of Mr Rick Christie: That Mr Rick Christie is re-elected as a director of ikeGPS Group

Limited.

5. Director and Employee Share options: That the Board of ikeGPS Group Limited (the Board) is

authorised, pursuant to Listing Rule 4.2.1, to:

(a) issue up to 3,000,000 options to subscribe for ordinary shares in the Company (Options), to

employees and directors of the Company on the terms set out in the Explanatory Notes

accompanying this Notice of Meeting; and


(b) take all actions, do all things and execute all documents and agreements considered by the

Board necessary to give effect to the issue of the Options.


3. Explanatory Notes

Each of the above resolutions is explained further in the explanatory notes set out in the following

pages.


4. Further information

Please also refer to the “Important Information” section below which contains details regarding

voting entitlements, voting in person and by proxy, and voting restrictions.


By order of the Board of ikeGPS Group Limited




Rick Christie

Chairman

9 September 2020













Page | 4



Explanatory notes

Resolution 1: Approval of Board fixing remuneration of auditor

PricewaterhouseCoopers is automatically re-appointed as IKE’s auditor under section 207T of

the Companies Act 1993. Section 207S of the Companies Act 1993 details the basis on how the

fees and expenses of the auditor shall be set. In order to provide flexibility, your directors

recommend that they be authorised to determine the fees and expenses of the auditors.

The Board unanimously recommends that shareholders vote in favour of Resolution 1.

Resolution 2: Approval of appointment of director

In accordance with NZX Listing Rule 2.7.1, any director appointed by the Board during the year

must retire from office at the next annual meeting but is eligible for election at that meeting. Mr

Mark Ratcliffe, being a director who was appointed by the Board during the year, retires from

office. Being eligible, Mr Mark Ratcliffe has offered himself for election.

The Board considers that Mr Mark Ratcliffe will be an independent director for the purposes of

the NZX Listing Rules if elected to the Board.

Mr. Mark Ratcliffe Mark joins IKE most recently from Chorus, where he was its Chief Executive

Officer leading the deployment of fiber and other telecommunications infrastructure across New

Zealand during which time it connected more than 600,000 homes & businesses to its fibre

network and grew annualized revenue to $970m.

Mark brings global business experience from positions across the telecommunications market

and has extensive investor and capital market experience specific to network infrastructure

businesses. Mark’s past and current roles include:

- Chief Executive Officer of Chorus

- Chief Operating Officer Wholesale & Technology of Telecom New Zealand (now known

as Spark)

- Chief Information Officer of Telecom New Zealand (now known as Spark)

- Interim Chief Executive at the New Zealand Transport Agency (finishing February 2020)

Mark also has considerable governance experience. Among other directorships he currently

serves as a non-executive board member of 2Degrees Mobile, the highly successful new entrant

into the New Zealand mobile market, and First Gas (a provider of Gas Transmission, Distribution

and Storage and LPG Services).

The Board unanimously supports the election of Mr Ratcliffe.



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Resolution 3 & 4: Re-election of directors

In accordance with NZX Listing Rule 2.7.1, a director must not hold office (without re-election)

past the third annual meeting following that director’s appointment or 3 years, whichever is

longer. Accordingly, Mr Rick Christie and Mr Fred Lax are required to retire, but being eligible,

both have offered themselves up for re-election.

The Board considers that both Mr Rick Christie and Mr Fred Lax will be independent directors for

the purposes of the NZX Listing Rules.

Mr. Rick Christie Former Chairman of Ebos Group. Experience as a director on a number of

other major boards, including TVNZ. Previously CEO of investment company Rangatira Ltd.

21 years’ management experience in the international oil and gas industry.

Mr Fred Lax is an executive leader with extensive global experience in the

telecommunications industry. He was formerly a director for 8 years of NASDAQ listed

Ikanos Communications Inc. and former Chief Executive Officer and President of Tekelec

Inc.

The Board unanimously supports the re-election of both Mr Rick Christie and Mr Fred Lax.

Resolution 5: Issue of up to 3,000,000 options to directors and employees

The Company currently has a share option plan (Option Plan), which enables selected directors

and employees of the Company to acquire options to subscribe for ordinary shares in the

Company (Options). The Option Plan is intended to incentivise those directors and employees to

achieve long term shareholder returns, by providing a proportion of their remuneration in shares.

The Company is seeking shareholder approval under Listing Rule 4.2.1 to issue up to 3,000,000

Options (the Approved Option Pool), which may be allocated amongst the employees and

directors of the Company as the Board sees fit subject to the terms of the Option Plan and

maximum allocation amounts set out below. The Options must be issued and allocated within

12 months of obtaining shareholder approval. This explanatory note explains why Resolution 5

is being put before shareholders and describes the key terms of which directors and employees

will be offered Options from the Approved Option Pool.

Terms of Issue of the Options

The Options will be issued for nil consideration on the terms set out below and, in all other respects,

subject to the terms of the Option Plan. The principal terms of issue of the Options are as follows:

• Ratio: Each Option entitles the holder to subscribe for one ordinary share in the Company.

• Exercise price: the exercise price payable in respect of each Option granted under the Approved

Option Pool will be as follows:


(a) in respect of the 300,000 Options to be granted from the Approved Option Pool to Mark

Ratcliffe (Non-Executive Director Options), the exercise price will be $0.90 per Option, and


(b) in respect of all other Options granted from the Approved Option Pool, the exercise price will

be determined by the Board when the Options are granted (with such price is either the

market price of the Company’s shares at the relevant time the offer of Options is made, or

the volume weighted average price of the Company’s shares 10 business days before the

offer of Options is made).




Page | 6


• Exercise date: The Options shall be exercisable as follows:


(a) the Non-Executive Director Options shall become exercisable in 12 equal quarterly tranches

split over the first 3 years from 1 January 2020 (resulting in the initial 3 quarterly tranches

being accelerated from the date Mark Ratcliffe became a director), and


(b) in respect of other Options granted from the Approved Option Pool, the Options will

(generally) become exercisable in 12 quarterly tranches split over the first 3 years following

the date the Options are granted.



Exercise period: Options may only be exercised in the period commencing on the date on which

the Options become exercisable and ending on the date that is 5 years after the date the Options

are granted. As such, the holder will have at least 2 years after all the options have become

exercisable to exercise each tranche before the Options expire.



• Lapse of Options: Should the services of an employee or director cease to be retained by the

Company, or a subsidiary of the Company, then:


(a) any Options held by such employee or director which are not exercisable shall immediately

lapse; and


(b) any Options held by such employee or director which are exercisable shall lapse 1 month

after the day such services cease to be retained by the Company, unless such Options are

exercised or have otherwise expired prior to that date.


• Settlement: On exercise, the holder of Options being exercised may elect either ‘full settlement’ or

‘net settlement’. Where full settlement is elected, the holder pays the exercise price for any

Options exercised and receives one share for each option exercised. Where net settlement is

elected, the holder receives a number of shares equal, in value, to the ‘net settlement amount’.

The net settlement amount equals the total market price of the shares to be issued under the

exercised Options (if full settlement had been elected), less the total exercise price for those

Options, and then multiplied by the number of Options exercised. The net settlement amount is

then divided by the market price to determine the number of shares in the Company to be issued

to that holder.


• Rank: All shares issued upon exercise of an Option (following payment of the exercise price)

shall rank equally in all respects with the Company’s other ordinary shares on issue at the

relevant exercise date.


• Transferability: Options are non-transferable.


• Voting and distribution rights: Options will carry no voting rights and no right to dividends or

other distributions declared by the Company.


• Bonus, issues, consolidations or subdivisions: On any bonus issue, consolidation, subdivision or

other reconstruction of shares the number of shares over which each Option is exercisable will

be adjusted in proportion to the reconstruction, and the exercise price will remain unchanged.


There is no cash consideration to be paid by the directors or employees in order for them to be

issued the Options.




Page | 7


Number of Options in Approved Option Pool 3,000,000 (representing 2.29% of all ordinary

shares on issue in the company as at 31

August 2020)

Maximum number of Options that may be

allocated to directors from the Approved Option

Pool

1,499,999

Maximum number of Options that may be

allocated to employees (excluding executive

directors) from the Approved Option Pool

3,000,000

Ratio Options may be exercised into ordinary shares

on a 1 for 1 basis

Exercise price

• In respect of the Non-Executive

Director Options, $0.90, and

• In respect of other Options granted

under the Approved Option Pool, the

exercise price to be determined by the

Board having regard to the relevant

market price of the Company’s shares

at the relevant time.


Anticipated immediate grant of Non-Executive Director Options

Subject to the approval of this resolution, the Board intends to immediately grant Mark Ratcliffe

300,000 Options from the Approved Option Pool (being the Non-Executive Director Options described

above).

The exercise price for each Non-Executive Director Option is $0.90, being the market price of the

Company’s shares at close of trading on 31 December 2019 (the market price when Mark Ratcliffe

became a director of IKE). It represents a discount of 7.2% to the market price of the Company’s

shares (being $0.97) prior to the opening of trading on the date of this Notice of Meeting.

In all other respects, the Non-Executive Director Options will be issued under the same terms as

Options are currently issued to employees and executive directors under the Option Plan. The key

terms of the Option Plan are set out below.

What is the purpose of the Option Plan?

The Board considers it important to ensure that all directors and employees of the Company are

given an opportunity to participate in any future grant of Options on the same terms, thereby

ensuring that all directors (including non-executive directors) and employees have the ability to share

the future success of the Company and are incentivised to achieve long term shareholder returns.

Currently, in accordance with the Listing Rules non-executive directors cannot participate in such

Option pool without shareholder approval (refer to the “Why is shareholder approval needed?” section

below).


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The issue of Options to both executive and non-executive directors is important in securing and

retaining the services of suitably talented and qualified individuals to act as directors for a growth

company such as the Company. It is anticipated that the issue of Options to non-executive directors,

executive directors and employees will secure the long-term services of such individuals and align

their interests with the creation of shareholder value.

How many unexpired Options have been granted to date?

The Options granted by the Company to date, which are yet to be exercised and have not expired as

at the date of this Notice of Meeting, are set out below:


Number of Options Grant date Expiry date Exercise price Held by

725,000 1/07/2018 31/03/2021 $0.54 Employees (excluding directors)

400,000 11/09/2018 31/03/2021 $0.54 Glenn Milnes (CEO & Managing

Director)

1,000,000 11/09/2018 31/03/2021 $0.54 Non-Executive directors

25,000 1/10/2018 31/03/2021 $0.54 Employees (excluding directors)

250,000 1/01/2019 31/12/2021 $0.64 Bill Morrow (Non-executive director)

1,100,000 28/06/2019 31/03/2025 $0.51 Employees (excluding directors)

75,001 21/08/2019 31/03/2025 $0.51 Employees (excluding directors)

200,000 3/09/2019 31/03/2025 $0.51 Employees (excluding directors)

249,999 3/09/2019 31/03/2025 $0.51 Non-Executive directors

400,000 2/12/2019 31/03/2025 $0.51 Glenn Milnes (CEO & Managing

Director)

150,000 10/02/2020 30/09/2025 $0.65 Employees (excluding directors)

4,575,000 (total)

The options referred to in the table above represent 3.49% of all ordinary shares on issue in the

company as at 31 August 2020.

Why is shareholder approval needed?

Listing Rule 4.1.1 prohibits the Company from issuing any equity securities without shareholder

approval unless the issue is made in accordance with any of the Listing Rules 4.3 to 4.9. The issue

of the Non-Executive Director Options does not fall within any of the enabling provisions under

Listing Rules 4.3 to 4.9. Accordingly, if the Company wishes to establish a pool of Options in which

all directors and employees of the Company may participate, such pool of Options must be approved

by shareholders.

Effect on shareholders

If shareholders approve the issue of the Options, any new shares issued on exercise of those Options

will have a dilutive effect on shareholders. In the event that all of the Options are issued, and all of

those Options were exercised, the new shares to be issued on exercise of the Options would

represent 2.29% of the total number of ordinary fully paid shares currently on issue in the Company

as at 31 August 2020.


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If shareholders do not approve the issue of the Approved Option Pool, the Remuneration Committee

of the Board will likely consider other alternative forms of remuneration for the non-executive

directors of the Company and seek shareholder approval for such other remuneration in due course.

Additionally, if shareholders do not approve the issue of the Options, the Company may not be able

to attract suitably talented and qualified individuals to act as directors for the Company, in a

competitive market where options are an expected part of total director’s remuneration.

IMPORTANT INFORMATION

Virtual Annual Meeting

Shareholders will only be able to attend and participate in this year’s Annual Meeting virtually via an

online platform provided by our share registrar, Link Market Services at

www.virtualmeeting.co.nz/ike20 .

Shareholders attending and participating in the virtual Annual Meeting will be able to vote and ask

questions during the meeting. If you will attend the Meeting online, you will require your CSN/Holder

Number for verification purposes.

More information regarding virtual attendance at the Annual Meeting (including how to vote and ask

questions virtually during the meeting) is available in the ‘Virtual Annual Meeting Online Portal Guide’

available at http://www.virtualmeeting.co.nz/help.

Proxies

Any shareholder who is entitled to attend and vote at the Annual Meeting may appoint a proxy, who

need not be a shareholder, to attend and vote instead of him/her by completing and returning the

enclosed proxy form. If you appoint a proxy you may either direct your proxy how to vote for you or

you may give your proxy discretion to vote as he/ she sees fit. If you wish to give your proxy

discretion, then you must mark the appropriate boxes on the form to grant your proxy that discretion.

If you do not tick any box for a particular resolution, your proxy may vote as they choose.

Shareholders can elect to vote their proxies online by visiting vote.linkmarketservices.com/IKE or by

scanning the QR code on the Proxy Form with your smartphone.

If you do not name a person as your proxy, but otherwise complete the proxy form in full, or your

named proxy does not attend the meeting, the Chairman will be appointed your proxy and may only

vote in accordance with your express direction.

The Chairman of the meeting or any director is willing to act as proxy for any shareholder who

appoints him/her for that purpose. If you tick the ‘Proxy Discretion’ box, you acknowledge that they

may exercise your proxy even if they have an interest in the outcome of that resolution (subject to

any restrictions contained in the NZX Listing Rules). The Chairman and directors intend to vote all

discretionary proxies in favour of all resolutions other than resolution 5 (which they are unable to

vote in favour of due to being a resolution under Rule 4.2.1). They may not exercise discretionary

proxies. Accordingly, if a director or Chairman is appointed as proxy, it is necessary to give them

voting instructions on the proxy form for resolution 5.

The completed proxy form must be received by the share registry no later than 2.00pm, Sunday 27

September 2020.

Shareholders can complete their proxy online at vote.linkmarketservices.com/IKE.



Page | 10


NZX Register holders:

You will need to enter your CSN/Holder Number and Authorisation Code (FIN) to securely complete

your proxy appointment online.

ASX Register holders:

You will need to enter your Holder Number and postcode to securely complete your proxy

appointment online.

If you wish to mail the proxy form then please send it to our share registry, Link Market Services

Limited, using the freepost envelope incorporated into the form.

Alternatively, you can scan and email the completed proxy form to

meetings@linkmarketservices.co.nz (please put the words IKE Proxy Form in the subject line for

easy identification).

Voting

Voting entitlements for the Annual Meeting will be determined as at 5.00pm on Friday 25 September

2020. Registered shareholders at that time will be the only persons entitled to vote at the Annual

Meeting and only the shares registered in those shareholders’ names at that time may be voted at

the Annual Meeting.

The Chair will require voting at the Annual Meeting to be conducted by poll, as required by the NZX

Listing Rules.

No shareholder is restricted from voting on Resolutions 1 to 4 under the NZX Listing Rules. The

directors of the Company and their Associated Persons (as defined in the NZX Listing Rules) are

unable to vote in favour of Resolution 5 in accordance with the NZX Listing Rules.

Resolutions

All the resolutions set out in this Notice of Meeting are ordinary resolutions. An ordinary resolution is

a resolution passed by a simple majority of votes of shareholders who are entitled to vote on the

resolutions and who exercise their right to vote.

Listing Rule References

In this Notice of Meeting, all reference to the Listing Rules are reference to the NZX Listing Rules.

Annual Report

The 2020 Annual Report is available on IKE’s website.

Please go to: https://ike4.ikegps.com/wp-content/uploads/2020/08/IKE-ANNUAL-REPORT-2020.pdf

Further Information

If you have any questions, or for more information, please contact our share registry, Link Market

Services, on

+64 (9) 375-5998.

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.