Debt Offer - Astute Access Group

Net Funds is pleased to release our latest offering into Astute Access Group Ltd. On offer is a 6-month loan term to help the company expand after securing a global licensing deal with one of the world's largest lock manufacturers.

Astute Access is a thought leader and pioneer of keyless smart lock solutions for utilities & critical infrastructure. Developers of LockVue® - the world’s first truly smart lock agnostic cloud software, providing users with a mobile phone app for controlled keyless entry to an ecosystem of Bluetooth-enabled locking hardware. The company has a portfolio of high-profile enterprise clients currently utilising their solutions (across multiple countries), along with established channel & strategic partnerships.

Leveraging off their unique hardware IP (design patents), Astute Access has won a global contract with one of the world’s largest lock manufacturers, who will produce this innovative smart lock solution under licence.

This initial contract is worth $1M upfront and then an ongoing royalty on each lock manufactured. To finalise the product design and enable working capital, they are seeking short-term funding to deliver this project with clearance from the $1M due when completed. There are also some other rollouts which require funding, and we (Netfunds) will take out the Invoice finance facility to secure and fund the additional stock needed.

Please see the credit memo in the documents tab for a full breakdown of the offer.

Management - Net Capital Limited

Management of the loan will be via Net Capital Limited (Net Funds), which will arrange all the documentation and securities on behalf of investors. As part of the ongoing management, we will monitor the performance of the company against some covenants being -

• API link from Xero to be maintained
• Working Capital ratio to be maintained at 1.5X, tested monthly
• Equity ratio to be maintained at a minimum of 35%, tested monthly

Investor capital is pooled into Net Capital Nominee with a declaration of trust between Net Capital Limited and the individual investor. Each deal in the nominee is ring-fenced to protect the investor's interest and Net Capital acts as the point of contact. Net Capital takes a fee from the borrower and all other returns are passed back through to investors less tax.

Net Funds

Net Funds was established to give investors access to private market deals and is professionally managed by an experienced team. We are investors ourselves and always look out for superior risk-weighted returns, in the Key Documents tab there is detailed information on Net Funds and how we operate.

Net Capital Limited (managed by Net Funds) has been established to provide investors with attractive returns as a side-car fund (Investors come in on a deal-by-deal basis) to specifically tackle the gap in the market between $100K to $1M investment round size. There are excellent returns to be made as we capture the best New Zealand has to offer on the start of their growth curve - our team has done significant research into the market to design the bespoke solutions to enable success. Using a blend of traditional and convertible equity-based debt we aim to achieve an internal rate of return of 15%+ per deal.