SMN is seeking to raise up to approximately A$7.0 million via:

• A placement under the Company’s existing placement capacity in accordance with ASX Listing Rule 7.1 to raise up to approximately $5.0m (“Placement”)
• a non-underwritten share purchase plan to be made available to certain of the Issuer’s eligible securityholders in accordance with ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547) and the ASX Listing Rules to raise up to an additional A$2.0m (“SPP”) (together the Placement and the SPP are the “Offer”)

The Offer will be set at an Offer Price of A$0.52 per new CHESS depositary interests over shares of common stock in the Company (“New CDIs”) and will result in the issuance of up to approximately 13.5 million New CDIs in the Issuer.

Participants in the Offer will receive three (3) free attaching options for every four (4) Securities allocated under the Offer (“Attaching Options”). The Attaching Options will have an exercise price of $0.78 and will expire on 30 November 2027.

Lead Manger: Bell Potter Securities Limited

Offer Price: A$0.52 per share (24.6% discount to Close Price on 31 October 2024).

• Continued product development and manufacturing capacity expansion for opportunities in Avionics, including digital audio, radio, and loudspeaker
• Expanded product development and business development capacity in CVM technology
• Working Capital and Costs of the Offer

Legacy business with strong core competencies and Tier 1 customers

• Advanced and fully integrated manufacturer of third-party products for the aviation industry’s Special Mission sector
• Transport Canada approved manufacturer, JOSCAR registered supplier, and is ISO9001/AS9100D registered and certified under Canada's Controlled Goods Program
• FY24 Revenue: AUD$16.69m (+31.4% vs pcp)
• Gross margins ~36.5%
• FY24 Segment EBITDA: AUD$ 3.20m
• Key Customers: Canyon AeroConnect, and SKYTRAC

Branded portfolio of special mission products currently driving growth

• Manufacture, sale, repairs and support of AEM branded Audio, Radio, Consoles and Accessory products for the aviation industry’s Special Mission sector
• AEM develops reliable, customer-driven solutions, trusted by top OEMs, special mission operators and avionics service providers
• AEM’s Innovative engineering capabilities, vertically-integrated manufacturing and testing techniques and industry-leading technical product support are differentiators
• FY24 Revenue: AUD$11.13m (+19.5% vs pcp)
• Gross margins ~68%
• FY24 Segment EBITDA: AUD$ 2.15m
• Key Customers: Bell, Boeing, Leonardo Helicopters, Airbus Helicopters, and Sikorsky

Significant driver of future growth

• Proprietary Comparative Vacuum Monitoring (CVM™) sensor technology and equipment
• CVM™ is the first FAA approved airframe crack detection compliance sensor solution for use on select 737 aircraft.
• Developed in collaboration with Delta Air Lines and Boeing.
• Installed on 45 of Delta’s 71 737 targeted aircraft fleet.
• Several additional Boeing and Airbus applications in the development pipeline.
• Strategic Partners: Boeing, Delta Air Lines, and TESTIA, an Airbus Company

• Comparative Vacuum Monitoring (CVM™) is the first technology to become commercially available, and FAA certified, to significantly reduce costs associated with airframe structural health monitoring inspections at heavy and out-of-sequence checks.
• Maximizes scheduled maintenance program efficiencies, reduces downtime, and restores thousands of flight hours across entire fleet networks.
• CVM™ has been designed and developed for more than 15 years, working in partnership with several major industry airlines and OEMs.
• Airline operator adoption of CVM™ technology has occurred & routine use is underway.
• FAA certification process has been established to streamline future applications.
• At the forefront of the move to predictive, remote and automated non-destructive testing.