For personal use only

25 July 2022

ASX Announcement

June 2022 Quarter in Review & Appendix 4C

Key Points

  • Record cash receipts for the June quarter of $4.18M
  • Assets Under Management ("AUM") increased to $527M as at 30 June 2022
  • Cash on hand at the end of the quarter in-excess of $10.57M
  • Commenced on-market share buy-back of up to 6.14M shares
  • Proposed capital return of $0.05 (5 cents per share) (subject to shareholder approval) in early Q1 FY23

Auctus Investment Group Limited ('AVC', 'Auctus' or 'the Company') is pleased to provide the following update in relation to activities for the June quarter of 2022.

Auctus Asset Management Pty Ltd (Auctus AM)

Auctus Asset Management ('Auctus AM') increased AUM from $479M at the end of March 2022 to $527M at the end of June 2022. This is an improvement of over 50% in AUM from June 2021.

The key driver behind this quarters growth was the second tranche raise of the Luxury Escapes Fund and an increase in the Gross Asset Value ('GAV') of the US Student Housing REIT as a result of independent valuations undertaken by CBRE. As previously reported, all AUM is now fee earning.

ASSETS UNDER MANAGEMENT (A$M)

Private Equity Private Real Estate

$527M

$466M

$210M

$349M$175M

$168M

$291M$317M

$182M

30 Jun 21

31 Dec 21

30 Jun 22

AUD: USD exchange rate of 0.69

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 $4.18M in cash receipts from customers for the June 2022 Quarter. Overall, Auctus generated a positive cash from operations of $1.63M for the quarter.

Total cash receipts from customers for the 12 months to June 2022 were $10.91M and positive cash from operations of $4.05M.

After commencing the on-marketbuy-back, with approximately $0.79M shares purchased to 30 June 2022, the Company ended the June 2022 quarter with just over $10.57M in cash (up from $6.42M at end of March 2022).

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.

Proposed Capital Return

On the 6 June 2022, the Company was pleased to announce its intention to deliver a $0.05 (5 cents) per share capital return to shareholders on the register at the record date (7.00pm AEST on 28 July 2022). This capital return (totalling approximately $3.93M) requires shareholder approval with the Company calling an EGM to be held on Monday, 25 July 2022.

Investment updates

Luxury Escapes Fund

During the quarter, Auctus received strong interest for the second tranche raise of the Luxury Escapes Fund. Once final applications and cash are received the Fund will close oversubscribed at ~$95M.

The Luxury Escapes business continues to perform ahead of our forecasts with the rebound in travel faster than anticipated.

esVolta, LP

As previously advised, esVolta, LP had signed a binding Purchase & Sale Agreement ('PSA') for 100% of the equity in the business. The transaction was subject to regulatory approval with the US Federal Energy Regulatory Commission ('FERC') approving the acquisition on 24 June 2022 with initial proceeds settling in mid-July. Auctus is currently in the process of returning first tranche payments to investors in the relevant funds. Under confidential terms in the PSA investors receive a positive return on capital upfront along with the ability to participate in future upside of the esVolta business (via milestones and earnouts).

The Company will materialise a small performance fee for the initial tranche of the transaction during the September 2022 quarter, with the ability for this to increase over time under the PSA as future milestones and earnouts are achieved.

During the quarter, esVolta repaid all outstanding loans to the Company (including interest owing) totalling approximately $4.59M.

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

The sale of esVolta LP, represents the Company's first realised exit. The Energy Storage Fund closed in June 2020. As a result, AUM will reduce by ~$73M during the September 2022 quarter (excluding new capital raised). The ~$73M represents the initial capital raised in esVolta and which is included in current AUM as at 30 June 2022). Given how the transaction was initially structured, the majority of revenue received by Auctus AM was upfront during FY20 and therefore does not greatly impact the Company's recurring revenue.

US Student Housing REIT (ASX: USQ)

US Student Housing REIT provided an update on valuation and pre-leasing across the portfolio for the 2022/2023 academic year (AY). All assets in the USQ portfolio, bar the recently acquired Lofts on 8th (Arizona State University), have been independently valued by CBRE for 30 June 2022.

The resulting GAV of the total portfolio of 9 properties has increased to US$144.6M (~A$210M), up from US$136.9 million. As at end of June 2022, the portfolio is 92.3% pre-leased with rental increases of 8.0% (prior year 4.3%) across the 9 assets owned by the REIT. The current pre-leasing is 16.1% ahead of the prior year.

Odyssey Group Investment

During the June 2022 quarter the Company provided notice to Odyssey Group Limited (Odyssey) of the Company's intention not to proceed with any additional investment into the group. This was a result of the Company's focus on growing its Australian and US investment footprint.

The Company previously made a US$500k investment to acquire its 9.9% interest in and provided a loan of US$200k to Odyssey. The Company will work with Odyssey to recoup its investment and loan funds over the coming months as part of the original put agreement.

FY22 Financial Results

In what has been a milestone year, the Company looks forward to releasing its full FY22 results at the end of August 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

30 June 2022

Consolidated statement of cash flows

Current quarter

Year to date

$A'000

(12 months)

$A'000

1.

Cash flows from operating activities

personal

1.1

Receipts from customers

4,179

10,910

1.7

Government grants and tax incentives

-

-

1.2

Payments for

(a)

research and development

-

-

(b) product manufacturing and operating

(902)

(1,529)

costs

(c)

advertising and marketing

-

-

(d)

leased assets

-

-

(e)

staff costs

(909)

(2,925)

(f) administration and corporate costs

(628)

(2,288)

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

(115)

(115)

For

1.8

Other (provide details if material)

-

-

1.9

Net cash from / (used in) operating

1,625

4,053

activities

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a)

entities

-

-

(b)

businesses

-

-

(c) property, plant and equipment

(345)

(345)

(d)

investments

(239)

(12,051)

(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

(12 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

3,518

(202)

2.4

Dividends received (see note 3)

23

23

2.5

Other

-

-

2.6

Net cash from / (used in) investing

2,957

(12,575)

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

-

5,008

3.4

Transaction costs related to issues of

-

(33)

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

3.8

Dividends paid

-

-

3.9

Other (On-market Share buy-back)

(791)

(791)

3.10

Net cash from / (used in) financing

(791)

4,184

activities

For

4.

Net increase / (decrease) in cash and

cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

period

6,422

14,536

4.2

Net cash from / (used in) operating

1,625

4,053

activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities

2,957

(12,575)

(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 24 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2022 22:33:03 UTC.