ASX ANNOUNCEMENT 5 September 2016 CoAssets Commences Trading on ASX The first crowdfunding and peer to peer lending company to list in Australia - Leading debt crowdfunding platform in Southeast Asia specialised in real estate and small medium-sized enterprises sees Australia as a key part of its expansion plans - Listing on Australia s primary stock exchange will help support CoAssets outreach in the region and drive further investor awareness with an increased measure of confidence and transparency - The funds raised will be invested in marketing, sales, IP costs, and product development Crowdfunding platform CoAssets Limited ( CoAssets or the Company ) (ASX: CA8) is pleased to announce that it has today listed on the Australian Securities Exchange Ltd ( ASX ) under the ASX code CA8 after successfully raising A$6.55 million 1 under its Public Offer at an issue price of A$0.40 per share. This builds upon A$4.8 million raised from various placements in the past 12 months. At the offer price, the Company has a market capitalisation of A$66 million. CoAssets is one of Southeast Asia s largest crowdfunding platforms specialising in debt crowdfunding for real estate and for small and medium-sized enterprises (SMEs) ( Opportunity Providers ), looking to fill the S$100k to S$5million funding gap. CoAssets lending based crowdfunding is done via a unique facilitation platform, which allows developers and businesses to list investment opportunities online and for registered users to have the ability to view, research, and ultimately invest in real estate or SME debt instruments. The Company believes that migrating its shares to the ASX will further drive investor awareness, and the success of its operations. The Company intends to use the funds raised on marketing and sales, IP costs, and product development. Crowdfunding and peer to peer lending are rapidly expanding worldwide, and CoAssets is excited by the pipeline of opportunities that lie ahead with its exposure to growth markets in Southeast Asia, China and Australia. 1 Based on exchange rate of SGD:AUD of 1:0.985 as at 21 July, 2016
Commenting on the ASX listing, CEO and Co-Founder of CoAssets, Mr. Getty Goh said: We are extremely pleased to announce our listing on the ASX today, marking a significant milestone for the first crowdfunding company to list in Australia. Listing on the Australian Securities Exchange is also important to us as it further supports our outreach by providing an increased measure of confidence and transparency to the market. Crowdfunding has received growing interest over the last few years and this is only the start. As an entrepreneur, it is very meaningful for me to see how CoAssets has grown from just a 2 person startup to what it currently is. We now have a highly experienced team with demonstrated expertise in delivering high quality large-scale EPIC expos, and have a proven track record in facilitating funds for companies seeking to raise capital on our proprietary platform. The listing is just the beginning, and investors should expect more developments coming up. Based on what we shared in our prospectus, we are in the process of starting a debt fund to take advantage of the opportunities we are seeing as well as solidifying our regional presence. Our mission is to continue to be one of the most trusted and leading crowdfunding companies in Asia Pacific. We take the opportunity to welcome our new shareholders on board, and we look forward to updating the market as we continue to grow and build on our success to date. About CoAssets CoAssets is a fast growing Southeast Asian crowdfunding platform that was previously listed on the National Stock Exchange (NSX). In only three years, the Company has grown its user base from 200 to 55,000+ and has enabled the raising of more than S$45 million in funding via its platform, facilitating the completion of more than 75 business deals throughout Southeast Asia and beyond. CoAssets derives its revenue by receiving 3-5% of total funds raised via the platform. CoAssets unaudited revenue for the Full Year 2016 experienced growth of 167% to S$2.182 million compared to the prior year of S$816,411. The growth is reflective of the increasing scale and presence of the business with the Company s expansion into key geographies including China and Australia, and an increased number of deals crowdfunded on the platform. The Company reported a statutory net loss after tax of S$2.704 million reflecting a number of one-off expenses associated with listing on the National Stock Exchange of Australia (NSX) and subsequently for the ASX listing, professional fees, and licensing costs. The loss is also reflective of the Company s early stage development, driven by the Company s rapid expansion in the last six months, increasing its headcount, marketing expenditure and strengthening its compliance. Of note, CoAssets registered
lender base has grown almost ten-fold over the last 12 months to now more than 55,000 and the Company expects revenue to grow in tandem with the increased usage. The Company was launched in Singapore by a highly credible management team, including the CEO and Co-Founder Getty Goh, and the CTO and Co-Founder Seh Huan Kiat. CoAssets now operates in Singapore, Australia, China, Indonesia and, with offices in all of these regions, targeting a combined population of 1.5 billion+, and an addressable market estimated to be US$100 billion annually. CoAssets aim is to create a more diversified credit landscape, looking to win business from traditional lenders by providing debt funding opportunities that are not funded by the banks. Borrowers are attracted to crowdfunding because they can usually receive faster access to loans at competitive rates when compared to those offered by traditional financiers. Whereas lenders traditionally receive higher risk adjusted yields than for other debt instruments. EPIC Events One of the Company s key differentiators includes the creation of its own EPIC events (Expo for Property Investing & Crowdfunding) where Opportunity Providers and potential investors can meet face to face. This has been an extremely valuable portal for CoAssets to raise awareness of crowdfunding, and to showcase its opportunities. For instance, in 2015, EPIC Kuala Lumpur led to the generation of S$10 million worth of transactions, while EPIC Surabaya received the support of East Java Investment Board and was attended by the East Java Governor. These expos have taken place in Singapore, and Indonesia, with the upcoming inaugural EPIC China on 11-12 November 2016. This EPIC China event is being held in collaboration with real estate developer, the Linca Group and the Government of Fuzhou, capital of the Fujian province in China, and a city designated as a Free Trade Zone. The expo will draw 1,000+ participants and over 100 booths. China is the largest online alternative finance market in Asia Pacific by transaction value, and a big market for CoAssets to tap into as peer to peer lending is estimated to grow to $127 billion by 2020 2. Crowdfunding Market Crowdfunding began as an online extension of financing from family and friends in the wake of the global financial crisis in 2008, when traditional lenders tightened their credit standards and small and medium businesses started to find it harder to receive financing. As a result, there was a push to open up new avenues for funding as a grass root initiative. That s when crowdfunding started to take place, 2 Global Marketplace Lending: Disruptive Innovation in Financials
an online extension of financing by giving companies a platform to access capital quickly from willing investors. Crowdfunding is now a well-used funding source in the developed world. Globally, more than US$10 billion were raised in crowdfunding in 2014, and the market is estimated to reach US$290 billion by 2020 3, with property being one of its fastest segments, expected to reach US$90 billion in the next 10 years 4. As marketplace lending grows, regulatory processes are being strengthened to protect borrowers and lenders. CoAssets has been working with one of the top four accounting firms worldwide to provide further security on its deals, and has developed a proprietary CoAssets Risk Assessment Model (CRAM) when evaluating the suitability of Opportunity Providers who want to list their opportunities the platform. CoAssets in Australia CoAssets has an established office in Perth, Western Australia, and views the Country as a key part of its expansion plan. The Company has an Australian version of its platform where Australian retail and sophisticated investors are able to access debt-based investment opportunities. In April CoAssets completed its first SME business lending crowdfunding project in Australia, raising more than A$105k in less than two days for engineering and construction consultancy firm Stapleton International. The rapid growth in alternative finance has seen Australia become the third largest market for crowdfunding in the Asia Pacific region 5, and the Government is setting a big focus on innovation with crowdfunding and peer to peer lending being part of this. As part of its strategy, CoAssets has developed co-sponsorship events with the Property Council of Australia to promote real estate and SME crowdfunding, and will also establish a Wholesale global debt opportunities Fund to invest in debt opportunities that fall outside the reach of its current platform, beyond the S$100k and S$5 million range. -ENDS- 3 Massolution: Crowd Powered Business. 2015CF-RE Crowdfunding for real estate 4 Intelligent Partnership Real Estate Crowdfunding: Alternative Finance Sector Report (2014) 5 Cambridge Centre for Alternative finance, Sydney University, KPMG, Harnessing Potential the Asia-Pacific Alternative Finance Benchmarking Report, March 2016
Press Contacts Dan Smith, Executive Director Elodie Castagna, FTI Consulting Direct: +61 8 9486 4036 Mobile: +61 (0) 417 978 955 Email: dan.smith@coassets.com Office: +61 9485 8888 Direct: +61 8 9485 8818 Mobile: +61 (0) 432 120 061 About CoAssets (ASX Code: CA8) CoAssets (www.coassets.com) is one of Southeast Asia s leading crowdfunding platforms which is listed on the Australian Securities Exchange (ASX). It is not licensed and/or regulated by the Monetary Authority of Singapore. Officially launched in Singapore in July 2013, it currently has more than 55,000 registered users and the amount successfully funded stands at more than S$45 million (US$33 million) with no defaults to date. The company won the Red Herring Top 100 Asia Award for 2014, as well as OPP Gold Award for Excellence and currently has offices in in Singapore, Australia, China, and Indonesia.