For personal use only

18 January 2022

ASX Announcement

December 2021 Quarter in Review - Appendix 4C

Key Points

  • Assets Under Management ("AUM") increased 16.5% from A$400M to A$466M during the quarter
  • Record Cash receipts for the quarter of $3.53M
  • Positive Cash from Operations for the quarter of $2.09M
  • Cash balance at the end of December was $13.4M

Auctus Investment Group Limited ('AVC', 'Auctus' or 'the Company') is pleased to provide the following update in relation to activities for the December quarter of 2021.

Auctus Asset Management Pty Ltd (Auctus AM)

Auctus Asset Management ('Auctus AM') increased AUM from A$400M at the end of September 2021 to A$466M at the end of December 2021. The current AUM figure is post two successful property exits in the US student housing portfolio totalling A$34.35M (further information below). Importantly, fee earning AUM has increased over 45% since the end of the June 2021 financial year to $360M.

The December 2021 quarter was focussed on the "Luxury Escapes Fund". The Fund launched in mid- September and received significant interest. As announced in late December the fund closed its initial raise in-excess of $70M.

Auctus Investment Group Limited

Level 7, 90 Collins Street Melbourne VIC 3000 Phone: +61 3 8630 3321 ABN: 76 149 278 759 www.auctusinvest.com

For personal use only

Cash Flow from Operations and Cash Position

Auctus generated $3.53M in cash receipts from customers for the December Quarter, leading to a record positive cash from operations of $2.09M.

The majority of the revenue for the quarter came from our Luxury Escapes Fund. Auctus continues to increase recurring revenue with over $800,000 of this quarter's revenue being recurring in nature.

The only investment made during the Quarter was a short-term working capital loan to esVolta. As updated to the market on 7 December 2021 this loan is for US$2.5M and is expected to be repaid towards the end of Q1 2022. esVolta appointed Citigroup (Citi) New York to run a broadly marketed process which will potentially lead to a near term full (or partial) exit, to be completed during the first quarter of 2022.

A cash inflow from issuance of securities of $4.2M was driven by option holders exercising and becoming shareholders in Auctus.

This meant the Company ended December 2021 with just over $13.4M in cash.

All payments noted in Section 6 of the accompanying Appendix 4C for related party payments during the quarter relate to settlement of directors' fees and salaries, including payment of invoices and amounts due from prior periods.

Updates

US Student Housing REIT (ASX: USQ)

During the quarter Auctus settled an additional asset at Clemson University for US$25.5M (A$35.40M) and successfully disposed of two properties in the existing jointly managed portfolio with Student Quarters ('SQ'). The sale of the two properties, for a combined total of approximately US$34.35M (A$47.70M) delivered investors Internal Rates of Return of >15% p.a. over the investment period demonstrating SQ's ability to execute on acquisition, operational management and divestment.

On 16 December 2021, Auctus was pleased to announce that US Student Housing REIT (ASX: USQ) ('USQ' or 'the REIT') had lodged a Product Disclosure Statement (PDS) with the Australian Securities Investments Commission for its proposed listing on the Australian Stock Exchange (ASX). The REIT is seeking to raise A$45M and has a proposed listing date of 16 February 2022. www.usq-reit.com.

Auctus is the appointed Investment Manager of the REIT and will receive a management fee of 0.60% p.a. of Gross Asset Value (GAV) upon listing. The REIT will consist of 11 properties, with a fair value of US$189M (GAV). The REIT brings together an existing portfolio of assets under the joint venture along with new assets to be settled during February.

Auctus are extremely pleased with the progress of its joint venture with SQ and both look forward to growing USQ over the coming years.

Auctus Investment Group Limited

Level 7, 90 Collins Street Melbourne VIC 3000 Phone: +61 3 8630 3321 ABN: 76 149 278 759 www.auctusinvest.com

For personal use only

US Opportunities Limited ("USO"):

USO deployed a further US$7.865M (~A$11M) into leading US healthcare technology company, Unite Us, taking total deployed capital of USO to US$23.74M (~A$33M) across 3 transactions. The investment in Unite Us fits with USO's strategy to invest in hard to access, US later stage private equity and pre-IPO investment opportunities.

USO raised A$35M of seed capital during H1 FY22 with Auctus being the appointed Investment Manager. Auctus will look to scale up USO during H2 FY22 as a key pillar to the Company and to diversify the portfolio into new investments during 2022.

  • Ends

This announcement has been authorised for release by the Board of AVC.

For all shareholder enquiries please contact:

Campbell McComb

Managing Director

enquiries@auctusinvest.com

Auctus Investment Group Limited

Level 7, 90 Collins Street Melbourne VIC 3000 Phone: +61 3 8630 3321 ABN: 76 149 278 759 www.auctusinvest.com

Rule 4.7B

AUCTUS INVESTMENT GROUP LIMITED (ASX: AVC)

Appendix 4C

only

Quarterly cash flow report for entities

subject to Listing Rule 4.7B

Name of entity

AUCTUS INVESTMENT GROUP LIMITED (ASX: AVC)

ABN

Quarter ended ("current quarter")

use

76 149 278 759

31 December 2021

Consolidated statement of cash flows

Current quarter

Year to date

$A'000

(6 months)

$A'000

1.

Cash flows from operating activities

personal

1.1

Receipts from customers

3,530

4,676

1.2

Payments for

(a)

research and development

-

-

(b) product manufacturing and operating

(67)

(199)

costs

(c)

advertising and marketing

-

-

(d)

leased assets

-

-

(e)

staff costs

(682)

(1,323)

(f) administration and corporate costs

(690)

(1,083)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

-

-

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes paid

-

-

1.7

Government grants and tax incentives

-

-

For

1.8

Other (provide details if material)

-

-

Net cash from / (used in) operating

1.9

2,091

2,071

activities

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a)

entities

-

-

(b)

businesses

-

-

(c) property, plant and equipment

-

-

(d)

investments

-

(4,508)

(e)

intellectual property

-

-

ASX Listing Rules Appendix 4C (17/07/20)

Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

Current quarter

Year to date

$A'000

(6 months)

$A'000

only

(f)

other non-current assets

-

-

2.2

Proceeds from disposal of:

(a)

entities

-

-

(b)

businesses

-

-

(c) property, plant and equipment

-

-

(d)

investments

-

-

use

(e)

intellectual property

-

-

(f)

other non-current assets

-

-

2.3

Cash flows from loans to other entities

(3,453)

(3,720)

2.4

Dividends received (see note 3)

-

-

2.5

Other

-

-

2.6

Net cash from / (used in) investing

(3,453)

(8,228)

personal

activities

3.

Cash flows from financing activities

3.1

Proceeds from issues of equity securities

(excluding convertible debt securities)

-

-

3.2

Proceeds from issue of convertible debt

-

-

securities

3.3

Proceeds from exercise of options

4,215

5,008

3.4

Transaction costs related to issues of

(21)

(31)

equity securities or convertible debt

securities

3.5

Proceeds from borrowings

-

-

3.6

Repayment of borrowings

-

-

3.7

Transaction costs related to loans and

-

-

borrowings

For

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

-

-

3.10

Net cash from / (used in) financing

4,194

4,977

activities

4.

Net increase / (decrease) in cash and

cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

period

10,733

14,536

4.2

Net cash from / (used in) operating

2,091

2,071

activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities

(3,453)

(8,228)

(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)

Page 2

+ See chapter 19 of the ASX Listing Rules for defined terms.

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Auctus Investment Group Limited published this content on 17 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2022 22:34:10 UTC.